The method of fixed dividend payments is used as a rule. Methodology of fixed dividend payments

Basic forms dividend payments in world practice are:

• · method of payment of dividends according to the residual principle;
• Method of fixed dividend payments;
• · method of constant percentage distribution of profits;
• · method of payment of the guaranteed minimum and extra dividends;
• Method of constant increase in the amount of dividends;
• Method of paying dividends by shares.

Let us consider these forms of dividend payments corresponding to different types of dividend policy.

Residual Dividend Methodology . In accordance with this methodology, dividends are paid last, after financing all possible effective investment projects of the company. The amount of dividend payments is determined after a sufficient amount has been formed from the profit of the reporting year financial resources ensuring the full implementation investment opportunities enterprises.

The advantages of the method of paying dividends according to the residual principle are to ensure high rates of development of the enterprise, increase its market value, maintain financial stability. This method of dividend payments is usually used during periods of increased investment activity companies in their early stages of development. The disadvantages of the dividend payment method according to the residual principle are obvious:

• · payment of dividends is not guaranteed, regular;
• The amount of dividends is not fixed, it varies depending on financial results of the past year and the volume of own resources allocated for investment purposes.
• · Dividends are paid only if the company has profits unclaimed for capital investments.

As a rule, the market value of shares of enterprises paying dividends on a residual basis is low.

The method of fixed dividend payments (or the method of a stable amount of dividend payments). In accordance with this methodology, the company pays regular dividends per share in the same amount for a long time, regardless of the change in the market value of the shares. At high inflation rates, the amount of dividend payments is adjusted for the inflation index. If the firm develops successfully and the amount annual profit exceeds the amount of funds required to pay dividends at a stable level, then the fixed dividend payout per share may be increased. When pursuing a dividend policy using this methodology, companies also use the dividend yield ratio, which serves as a guideline for them in determining the amount of a fixed dividend for the future.

The advantage of the method of fixed dividend payments is its reliability, which gives shareholders a sense of confidence in the invariance of the amount of current income, regardless of various circumstances, helps to avoid fluctuations in the market value of shares by stock market(which is typical for the method of constant percentage distribution of profits). The disadvantage of this technique is its weak connection with the financial results of the company, and therefore, during periods of unfavorable conjuncture and a decrease in profit current year the company may not have enough own funds for investment, financial and even core activities.

The method of constant percentage distribution of profits (or the method of a stable level of dividends). This technique implies a stable percentage over a long period of time. net profit allocated for the payment of dividends on ordinary shares. One of the main analytical indicators characterizing the dividend policy is the dividend yield ratio (Kdv), calculated by the formula:

Kdv \u003d D ob.share / P ob.share

Where, Add. - dividend per one ordinary share;

Acc. gain - earnings per ordinary share.

The dividend policy of a constant percentage distribution of profits assumes a stable value of the dividend yield per ordinary share over a long period of time. It should be noted that the earnings attributable per ordinary share are determined after the payment of income to bondholders and dividends on preferred shares(yield of these valuable papers negotiated in advance, regardless of the amount of profit and is not subject to adjustment).

In accordance with this methodology, dividends on ordinary shares are not paid in cases where the company ended the current year with a loss or all profits must be directed to the owners of bonds and preferred shares. In addition, the amount of dividends determined in this way can fluctuate significantly from year to year depending on the profit of the current year, which cannot but affect the market value of shares.

The method of paying the guaranteed minimum and extra dividends. Pursuing a dividend policy in accordance with this methodology, the company regularly pays dividends fixed in absolute amount. However, in case of favorable market conditions and a large amount of profit of the current year, extra dividends are paid to shareholders. Thus, the current income of shareholders consists of annually received dividends fixed at a minimum level and extra dividends paid periodically and depending on the financial results of the reporting year.

The advantages of this method of dividend payments are a stable guaranteed payment of dividends in the minimum prescribed amount (similar to the method of fixed dividend payments), a high connection with the financial results of the company, which allows increasing the amount of dividends in favorable years for the company without reducing its investment activity. With an unstable economic situation and significant fluctuations in the amount of profit received by the enterprise, this method of dividend payments seems to be the most effective. The main disadvantage of this technique is that with a long-term payment of minimum fixed dividends (without a premium in certain periods), the investment attractiveness company shares; and vice versa, with regular payments of extradividends, their stimulating effect on shareholders is reduced and, therefore, the difference between this policy and the methodology of fixed dividend payments disappears.

The method of constant increase in the amount of dividends . In accordance with this methodology, there is a steady increase in the level of dividend payments per share. As a rule, the increase in the size of dividends is made in firm set percentage to their level in the previous period. The advantages of the policy of constant increase in the amount of dividends for shareholders are obvious, in addition, in this way, the high market value of the company's shares is ensured, and its attractiveness in the eyes of investors in case of additional issues.

The disadvantages of this technique are its inflexibility (because the firm assumes the obligation to increase the size of dividend payments regularly, regardless of financial results, even during periods of no profit) and the constant increase in financial tension. The lagging of the growth rate of profits from the growth rates of dividend payments means a reduction in the amount of reinvested profit, curtailment investment activity, reducing the financial stability of the company. Therefore, an indispensable condition for the implementation of the method of constant increase in the amount of dividends in practice is the outpacing growth of profits compared to dividend payments.

Methodology for paying dividends by shares . When using this technique, companies provide dividend payments to shareholders instead of Money additional shareholding. The amount of dividends paid in this way is equal in value to the amount of the reduction in funds belonging to shareholders, capitalized in the authorized capital and reserves. Under certain conditions, this approach can satisfy shareholders, since the securities they receive as dividend payments can be sold on the stock market.

The payment of dividends by shares can be carried out either with the same authorized capital and balance sheet currency, i.e. simple redistribution of sources of own funds, or be accompanied by a simultaneous increase authorized capital and hence the balance sheet. In the first case, in liabilities, the increase in the authorized capital is carried out by reducing share premium and retained earnings previous years. If the number of shares in circulation increases, and the total amount of sources of funds (balance sheet currency) does not change, then the value of assets per share decreases. In the second option (issue ordinary shares with a simultaneous increase in the authorized capital) additional issue shares does not lead to a reduction in the value of assets per share and, as a rule, does not lead to a decrease in the market value of shares.

When using the method of paying dividends by shares, the dynamics market rate securities is the least predictable. The small amount of dividends paid out in this manner will generally have no effect on market value shares. If dividends are significant, then market price shares after additional issue may drop significantly. Often, companies are forced to resort to this method of dividend payments in the event of an unstable financial situation and the absence of highly liquid assets for settlements with shareholders or the need to reinvest the profit of the reporting year in a highly effective project. In accordance with Russian legislation joint-stock company has the right to pay dividends in shares only if it is provided for by its charter.

In general, in economic literature There are three main approaches to the formation of dividend policy:

• · conservative;
• moderate (compromise);
• aggressive.

The methods of dividend payments outlined above can be attributed to one of these types of dividend policy (Table 1).

Table 1 - Methodology of dividend payments by types of dividend policy

Conservative dividend policy is a variant of the dividend policy, the main purpose of which is the priority satisfaction of the investment needs of the enterprise, and the payment of dividends is carried out in a minimum stable amount or on a residual basis.

A moderate dividend policy is a variant of a dividend policy that provides for a stable level of dividend payout with a premium in certain periods. This policy is most linked to results financial activities enterprise and the level of satisfaction of its investment needs.

Aggressive dividend policy - a variant of the dividend policy that provides for a stable level of dividend payout with an aggressive premium in certain periods in order to market the stock promotion of the enterprise. This policy is least linked to the results of the financial activity of the enterprise.

According to the current regulatory documents A dividend is a part of the net profit of a joint-stock company distributed among the shareholders in proportion to the number of shares at their disposal. The dividend can be paid with a certain frequency, which is regulated by national legislation

The dividend payment procedure adopted in most countries is standard and takes place in several stages (Approximate sequence of dividend payment):

Dividend declaration date- this is the day when the board of directors makes a decision (announces) on the payment of dividends, their size, dates of census and payment. Many companies publish this information in the financial press. Census date - this is the day of registration of shareholders entitled to receive declared dividends. The need for such registration is determined by the fact that the composition of shareholders is constantly changing due to the circulation of shares on the securities market. The date of the census is usually set 2-4 weeks before the date of payment of dividends. In order to determine who is entitled to dividends, a ex-dividend date: persons who bought shares prior to this date are entitled to dividends for the past period; persons who bought shares on this day and later do not have such a right. The ex-dividend date is usually set four business days before the date of the dividend census. Payment date is the day when checks are sent to shareholders or when they can receive dividends directly.

According to paragraph 2 of Art. 42 federal law“On joint-stock companies” the source of payment of dividends is the net profit of the company (formally, this means that we are talking about total profit, including the net “profit of the company for the past year and retained earnings of previous years); on preferred shares, dividends can be paid out of funds specially created for this purpose (the latter are used to pay dividends in case of insufficient net profit or loss of the company based on the results of the reporting period). Therefore, theoretically commercial organization may pay the total amount of current dividends in an amount exceeding the profit of the reporting period. However, the basic option is the distribution of the net profit of the current period.

In world practice, developed various options dividend payments, namely:

The method of constant percentage distribution of profits. As you know, net profit is distributed to pay dividends on preferred shares. (Dps) and earnings available to holders of common stock (Pcs)- The latter, in turn, is distributed by the decision of the meeting of shareholders for dividend payments on ordinary shares (D cs) and reinvested (i.e., retained) profit (RP).

Method of fixed dividend payments. This policy provides for the regular payment of a dividend per share in a constant amount over a long period of time, for example, 1.3 units, regardless of changes in the share price. If the firm develops successfully and for a number of years earnings per share consistently exceed a certain level, the dividend may be increased. That is, there is a certain lag between these two indicators. When determining the amount of a fixed dividend for a certain period, companies often use as a guide the values ​​of the "dividend yield" indicator that are acceptable to them. This technique allows, to a certain extent, to neutralize the influence of the psychological factor and avoid fluctuations in stock prices, which is typical for the method of constant percentage distribution of profits.

Guaranteed minimum payment method and extra-dividends. This technique is a development of the previous one. The company pays regular fixed dividends, however, from time to time, in case of successful activity, extra dividends are paid to shareholders. The term "extra" means a premium accrued to regular dividends and having a one-time nature, i.e., it is not promised to be received next year. Moreover, it is also recommended to use the psychological impact of the premium here - it should not be paid too often, because in this case it becomes expected, and the extra dividend payment method itself becomes useless. Prize data is also published in the financial press. For example, if a company announced a dividend of $1.2 and a premium of 30 cents, the press release might read: "1.2 + 0.3".

Residual dividend payment method. The essence of this technique, which is quite common in the West, is that dividends should be paid last - after all the company's justified investment needs are satisfied. From here, the sequence of actions is also visible: an optimal capital investment budget is drawn up; the optimal structure of funding sources is determined, within which the value equity necessary for the implementation of the budget; dividends are paid only if there is profit left unclaimed to finance investments.

The method of paying dividends by shares. With this form of payment, shareholders receive an additional block of shares instead of money. The reasons for its use may vary. For example, a company has problems with cash, its financial position is not very stable. In order to somehow avoid the dissatisfaction of shareholders, the directors of the company may offer to pay dividends with additional shares. By the way, this approach has been used by many check companies. investment funds in our country in 1994. The second option is also possible: the company's financial position is stable, moreover, it is developing rapidly, so it needs funds for development - they come to it in the form of retained earnings.

According to Russian legislation, a joint stock company has the right to announce the payment of dividends based on the results of the first quarter, half a year, 9 months or fiscal year generally. The term and procedure for the payment of dividends are determined by the charter of the joint-stock company or by the decision general meeting shareholders; the payment period should not exceed 60 days from the date of the decision to pay dividends. Dividends are not accrued on shares, the ownership of which has passed to the company.

Decision on the payment of interim dividends, their amount and form of payment under different types shares are accepted by the board of directors (supervisory board); a similar decision on annual dividends is made by the general meeting of shareholders on the recommendation of the board of directors. The amount of annual dividends cannot be more than recommended by the Board of Directors and less than the amount of interim dividends.

The Company is not entitled to make a decision on the payment (announcement) of dividends if:

a) the authorized capital of the company has not been fully paid;

b) the company has not fully redeemed its own shares, for which their owners have the right to demand their redemption;

c) at the time of payment of dividends, the company meets the signs of insolvency (bankruptcy) determined by legal acts RF, or these signs will appear in the company as a result of the payment of dividends;

d) cost net assets company is less than the total value of its authorized capital, reserve fund (capital) and excess over face value statutory salvage value of placed preferred shares or will become less than this value as a result of the payment of dividends.

Questions for self-control

1. Essence and content of the dividend policy

2. Expand the concept of dividends

3. What are dividends in a business enterprise

4. What are the options for the types of dividend policy used

5. The essence of the residual policy of dividend payments

6. Determine the main stages in the formation of a dividend policy

7. What are the opportunities for optimizing the dividend policy?

8. What is the most common dividend payment procedure

9. What options for dividend payments are used in practice in the Russian Federation

10. Basic dividend payment methods

Introduction

1. The concept, essence and significance of the dividend policy

2. Dividend payment methods

2.1 Fixed dividend methodology

2.2 Guaranteed minimum and extra dividend payment methodology

Conclusion

Bibliography

Introduction

The company's dividend policy big influence not only on the capital structure, but also on the investment attractiveness of a business entity. If dividend payments are high enough, then this is one of the signs that the company is working successfully and it is profitable to invest in it. But if at the same time a small share of the profit is directed to the renewal and expansion of production, then the situation may change. One of the indicators characterizing the dividend policy is the level of dividend yield, i.e. share of profit allocated for the payment of dividends on ordinary shares.

There are two different approaches to the theory of dividend policy. The first approach is based on the residual principle: dividends are paid after all the opportunities for effective reinvestment of profits have been used, which implies their growth in the future. The second approach follows from the principle of minimizing a, when shareholders prefer low dividends at the current moment to high ones in the future.

The source of dividend payment may be the net profit of the reporting period, retained earnings of previous years and special reserve funds, created to pay dividends on preferred shares in case the company receives an insufficient amount of profit or becomes a loss. Therefore, there may be cases when dividend payments exceed the amount of profit received. Deciding on the amount of dividends is not an easy task. On the one hand, in market conditions there are always opportunities to participate in new investment projects in order to obtain additional profit, and on the other hand, low dividends lead to a decrease in the market value of shares, which is defined as the ratio of the dividend amount per share to the market rate of return (rate bank interest on deposits), which is undesirable for the enterprise. In world practice, various options for dividend payments on ordinary shares have been developed: constant percentage distribution of profits; fixed dividend payments, regardless of income; guaranteed minimum and extra dividend payments; payment of dividends by shares.

1. The concept, essence and significance of the dividend policy

Dividend policy is part of financial strategy an enterprise aimed at optimizing the proportions between consumed and reinvested shares of profit in order to increase its market value and the welfare of owners.

By investing in a share, share, share in the capital of an enterprise, the investor actually becomes its co-owner and receives the right to participate in the distribution of income received. In general, the implementation this right is carried out in the form of withdrawal in favor of the owners of part of the profits in various forms. For joint-stock companies, the exercise of the right to participate in the distribution of profits is traditionally carried out in the form of dividend payments.

A dividend is a part of the profit distributed among the owners in accordance with the number of acquired shares, shares, shares with one or another frequency.

The right to receive dividends is given by both preferred and ordinary shares. According to domestic legislation, the charter of a joint-stock company must define minimum size dividend on preferred shares. Dividends on ordinary shares are paid only after all costs have been covered, interest on issued bonds, loans taken, taxes and dividends on preferred shares have been paid. Thus, the rights of owners of ordinary shares to receive part of the income from the company's activities are satisfied last.

One of the existing sources of financing for an enterprise is considered to be retained earnings, the payment of dividends reduces the amount of profit allocated for reinvestment.

Decisions on the procedure and amount of payment of dividends is a decision on financing the activities of the enterprise and affects the amount of attracted sources of capital.

The larger the expected dividends and their growth rate, the greater the theoretical value of the shares and the wealth of shareholders in the short term.

However, the payment of dividends reduces the possibility of refinancing profits in long term which can adversely affect the income and well-being of the owners.

The most important task of the dividend policy is to find the optimal combination of the interest of shareholders with the need for sufficient financing for the development of the enterprise.

Stages of forming a dividend policy:

Stage 1. Evaluation of the factors that determine the formation of dividend policy.

Stage 2. Choice of the type of dividend policy and method of payment of dividends.

Stage 3. Development of a profit distribution mechanism in accordance with the chosen method of paying dividends.

Stage 4. Determining the level of dividends per share.

Stage 5 Evaluation of the effectiveness of the ongoing dividend

According to Russian law, the sources of dividends can be: net profit of the reporting period, retained earnings of previous periods and special funds created for this purpose (the latter are used to pay dividends on preferred shares in case of insufficient profit or loss of the company). Therefore, theoretically, the company can pay the total amount of current dividends in excess of the profit of the reporting period. However, the basic option is the distribution of the net profit of the current period.

The value of the net profit of any enterprise is subject to fluctuations; the situation when the enterprise can work out with a loss is not excluded also. Deciding on the amount of dividends in any case is not an easy task. First, in market conditions there are always opportunities for expansion production capacity or participation in new investment projects. Secondly, the instability of dividend payments or a sharp change in their value is fraught with a decrease in the share price. That is why in the world practice various options for dividend payments have been developed.

2. Dividend payment methods

2.1 Methodology of fixed dividend payments

The method of fixed dividend payments (or a stable amount of dividend payments) implies regular payment of dividends per share in the same amount, for a long time, regardless of changes in the market value of shares. At high inflation rates, the amount of dividend payments is adjusted for the inflation index. If the company is developing successfully and the amount of annual profit exceeds the amount of funds required to pay dividends at a stable level, then the fixed dividend payout per share can be increased. When pursuing a dividend policy using this methodology, enterprises also use the dividend yield indicator, which serves as a guideline in determining the amount of a fixed dividend for the future.

The advantage of this technique is a sense of reliability, which gives shareholders a sense of confidence in the invariability of the amount of current income, regardless of various circumstances, and avoids fluctuations in the stock market value on the stock market (which is typical, for example, for the first technique). The disadvantage of this policy is a weak connection with the financial performance, therefore, during periods of unfavorable market conditions and a decrease in the value of the current year's profit, the enterprise may not have enough own funds for investment, financial, and even core activities. To avoid negative consequences the fixed amount of dividends is set, as a rule, at a relatively low level in order to reduce the risk of a decrease in the financial stability of the enterprise due to insufficient growth in equity capital.

2.2 Methodology for paying the guaranteed minimum and extra

dividends

The method of paying the guaranteed minimum and extra-dividends provides for a regular payment fixed amount dividends. In case of favorable market conditions and a large amount of profit of the current year, extra dividends are paid to shareholders. Thus, the current income of shareholders consists of annually received dividends fixed at a minimum level and periodically paid out depending on the financial results of the reporting year, extra-dividends. The advantages of this methodology are a stable guaranteed payment of dividends in the minimum prescribed amount (similar to the method of fixed dividend payments), a high connection with the financial results of the enterprise, which allows increasing the amount of dividends in favorable years without reducing investment activity. With an unstable economic situation and significant fluctuations in the size of the profit received by the enterprise, this technique seems to be the most effective. Its main drawback is that with prolonged payment of minimum fixed dividends (without a premium in certain periods), the investment attractiveness of the company's shares decreases, and with regular payments of extra-dividends, their stimulating effect on shareholders decreases and the difference between this policy and the method of fixed dividend payments disappears. .

Dividend payment: basic methods

The method of constant percentage distribution of profits. This technique assumes the stability of the ratio between capitalized and distributed profits. At the same time, the amount of dividends paid will be unstable, its fluctuations will depend on the dynamics of profit - this is precisely the main drawback of this technique. The indicators of the methodology will be the stability of the dividend payout and profit reinvestment ratio and the instability of dividends per share. This technique is acceptable with the relative stability of the organization's profits.

Method of fixed dividend payments. In accordance with this methodology, the organization ensures the stability of dividend payments, increasing them as profits increase. The stability of payments with a possible decrease in profits is ensured by the profits of previous years or specially formed funds. This policy, to a greater extent than the previous one, takes into account the interests of shareholders. The policy indicator is the stability of dividends per share.

Guaranteed minimum payment method and extra-dividends. It is advisable to apply this technique to organizations whose profits are extremely unstable. In this case, it is advisable to guarantee a minimum level of dividends, and then pay extra dividends during periods of high market conditions and significantly increased profits. The disadvantage of the methodology is the instability of dividend payments, which leads to an increase in the riskiness of the organization in the eyes of its shareholders. An indicator of such a policy is the relative stability of dividends per share and their low level; in some periods there will be a significant increase in dividend payments.

Residual payment method. In this case, the funding needs of the organization investment programs are placed above the interests of shareholders, since when deciding on the payment of dividends, the capital investment budget and the possibility of financing it from profits are preliminarily considered, and only if net profit exceeds the need for financing capital investments a decision is made to pay dividends. An indicator of such a policy is a significant level of reinvestment of profits and insignificant unstable dividends per share.

The method of paying dividends by shares. Within the framework of the methodology, it is supposed to increase the authorized capital and additional issue of shares at the expense of property - at the expense of retained earnings. In this case, all profits remain in the organization, and shareholders receive additional shares in proportion to the existing ones. Share dividends are used if the company is interested in depreciating the share price. An indicator of such a policy is the absence of dividend payments, on the one hand, and an increase in the authorized capital through an additional issue of shares placed by private subscription, on the other.

Comparative characteristics of the methods of dividend payments are presented in the table.

Table Comparative characteristics of dividend payment methods

The dividend policy actually implemented by companies, as a rule, is characterized by the following properties:

organizations prefer to be funded by internal sources, i.e. at the expense of profit and depreciation;

organizations set a target value for the dividend payout ratio, which takes into account investment needs and expected cash flows;

dividends are stable in the short term. Organizations form a special reserve fund;

if cash flow the organization exceeds its investment opportunities, it invests them in securities or repays debt;

if the organization does not have enough of its own sources, it borrows; if they are redundant, it repays the previously attracted borrowed capital. Organizations prefer to retain leverage so they can raise debt rather than issue shares. The issue of shares is perceived in the following way: since managers act in the interests of existing shareholders, and not potential ones, then with good prospects they will refrain from issuing shares, with bad prospects they will issue shares. Therefore, the placement price, as a rule, is underestimated, and the additional issue causes a decrease in the share price.

The mechanism for distributing the profits of a joint-stock company provides for a certain sequence of actions.

From the amount of net profit, deductions formed at its expense to reserve and other mandatory funds provided by the statute. The rest of the net profit is the so-called dividend corridor, within which the selected type of dividend policy is implemented.

The remaining net profit is divided into reinvested (capitalized) and consumed (consumption fund) parts.

The consumption fund formed from net profit is distributed to the dividend payment fund and created in accordance with the collective employment contract consumption fund of employees of the joint-stock company.

Forms and procedure for payment of dividends. If companies are completely independent in the matter of choosing the type of dividend policy and the form of payment of dividends, then the procedure and procedure for dividend payments are regulated by the current legislation. Sources of funds for the payment of dividends are:

for ordinary shares - net profit of the company;

on preferred shares - net profit, as well as funds specially formed for this purpose. The use of the reserve fund for these purposes is prohibited.

The decision to pay dividends is made by the general meeting of shareholders on the recommendation of the board of directors. At the same time, the amount of annual dividends cannot be more than those recommended by the Board of Directors and less than the intermediate ones paid. If a dividend is declared by the general meeting, then its payment is mandatory.

In many countries, the procedure, forms and other aspects of dividends to shareholders are regulated by law. AT Russian Federation such regulation is carried out within the framework of the Federal Law of December 26, 1995 No. 208-FZ “On Joint Stock Companies” (with subsequent amendments and additions).

According to this Law, a joint-stock company:

has the right to make decisions (announce) on the payment of dividends on outstanding shares on a periodic (quarterly, every 6 or 9 months) or annual basis, while a decision on the payment (announcement) of dividends based on the results of the period can be made within three months after its endings;

is obliged to pay declared dividends on shares of each category (type).

In this case, dividends must be paid:

money, and in cases provided for by the charter, property;

from the net profit of the company after taxes (for preference shares of certain types, payment is allowed at the expense of special funds previously formed for these purposes);

by decision of the general meeting of shareholders on the amount of the dividend and the form of its payment on shares of each category (type); at the same time, the amount of dividends cannot be more than recommended by the board of directors (supervisory board);

within the time period specified by the company's charter or by the decision of the general meeting of shareholders on the payment of dividends (if the company's charter does not specify the dividend payment period, it should not exceed 60 days from the date of the decision to pay dividends).

A joint-stock company is not entitled to make a decision on the payment of dividends:

until full payment of the authorized capital;

until the redemption of all shares at the request of shareholders;

if on the day the decision is made, it meets the signs of bankruptcy or these signs appear as a result of the payment of dividends;

if, on the date of the decision, the value of its net assets less than the amount authorized capital, reserve fund and excess of the authorized liquidation value of preferred shares over their face value;

on ordinary and preference shares, the amount of dividend on which is not determined, unless a decision is made to pay dividends in full on all types of preference shares, the amount of dividends on which is determined by the charter;

on preference shares of a certain type, for which the amount of the dividend is determined by the charter, until a decision is made on the full payment of dividends on all types of shares that provide priority in terms of the order of payment (over preference shares).

In world economic practice, various types of dividends are known:

regular dividends paid on a periodic or ongoing basis;

additional dividends (for example, in case of excess profits in a given period);

special dividends (additional one-time dividend payments);

liquidation dividends paid in case of liquidation of an enterprise or its part, etc.

The payment of dividends is carried out in several stages, determined by a number of dates:

Announcement date - the board of directors announces its intention to pay dividends in the appropriate volume (amount) and determines the start date for payments.

The ex-dividend date or record closing date is the point in time before which a share must be held in order to be eligible to receive dividends. On this day, the share price usually decreases by an amount equal to or close to the declared dividend.

Date of payment - the date of commencement of dividend payments to shareholders.

Dividends can be paid in various forms, each with its own advantages and disadvantages. The most common of them include:

payments in monetary form (cash dividends);

automatic reinvestment ( dividend reinvestment plans);

share payment ( stock dividends);

share split (stock split);

repurchase of own shares stock repurchase) and etc.

The main and widely used in practice form of dividend payments is monetary. At the same time, the legislation of the Russian Federation also provides for other forms of payments, for example, in the form of products or other property (ie, in kind). Payments in kind (property) form, in particular, are practiced by domestic enterprises operating in the agricultural sector.

Automatic reinvestment gives shareholders the right to individual choice - to receive dividends in cash or reinvest them in additional shares(for this, the shareholder enters into an appropriate agreement with the enterprise or its agent). In the latter case, the enterprise carries out an additional issue of shares or redeems their required number in the secondary market.

The advantage of this form of payment for the enterprise is that in the case of the choice of shareholders in favor of reinvestment, it actually receives a constant source of equity capital. The benefit to owners is the ability to quickly reinvest or increase the value of shares in the event of an announcement of a buyback. It should be noted that this form of dividend payments has not yet become widespread in domestic practice.

The payment of dividends in the form of shares involves the distribution among the owners of additional shares for the total amount of dividend payments. At the same time, the number of shares in circulation increases, and the price, as a rule, falls. Consider an example.

Example 17.1

The number of shares in circulation of firm "K" is 1,000,000. Based on the results of economic activity, a net profit of 6,000,000.00 units was received. The P/E ratio is 10. A 25% share dividend has been declared. The investor owns 120 shares. How will his well-being change?

Before paying dividends:

EPS(earnings per share) = 6,000,000 / 1,000,000 = 6.00 units

P/E (P/E = share price / earnings per share) = P / 6.00 = 10, hence P = 60.00 units. per share.

The total cost of the package 60 x 120 = 7200.00 units.

After the payment of dividends (25% of shares):

NS(number of shares in circulation) = 1,000,000 x 1.25 = 1,250,000 units.

EPS = 6,000,000 / 1,250,000 = 4.80 units

P/E= P/ 4.80 = 10, whence P= 48.00 units per share.

The investor has 120 x 1.25 = 150 shares.

The total cost of the package = 48 x 150 = 7200.00 units.

Thus, theoretically, the payment of dividends by shares does not lead to an increase in the value of the company and an increase in the welfare of its owners.

However, in practice, the payment of dividends by shares can bring certain benefits to the enterprise, especially when it has liquidity problems. The most significant of them include:

maintaining free cash at the disposal of the company;

implementation of the dividend policy even in conditions of insufficient funds and giving positive signals to the market;

increase in the number of shares outstanding;

an effective way for shareholders to increase their shares without additional costs, etc.

Similar in its economic essence, although differing in content, is the operation share split.

A share split is a reduction in their face value with a proportional increase in their number. At the same time, there is no change in equity capital, the value of the company and the welfare of the owners.

Since the crushing operation is popular among Russian enterprises, we will consider its essence using real examples.

One of the first public Russian enterprises that carried out a share split operation was the well-known brewing company Baltika OJSC. At the annual meeting of its shareholders on March 28, 2000, it was decided to split the placed ordinary and preferred shares at a ratio of 1:80. The nominal value of shares was reduced from 80 to 1 ruble, and their number increased 80 times. The main purpose of the split was to increase the liquidity and attractiveness of shares for investors, the market value of which at that time reached $500 per share, and high dividends did not promote the sale of these securities. Insignificant turnover of shares in the market led to high overhead costs in transactions. As a result of a sharp increase in the number of shares in circulation and a significant decrease in their value per share, they have become more accessible, including for small investors. The increase in liquidity, in turn, contributed to an increase in demand and a further increase in their market value.

Similar decisions were made by many Russian enterprises (MGTS, OAO Severstal, etc.), including those whose shares are traded abroad. crushing their ADR 1 and GDR 2 carried out by OJSC VimpelCom, Sibneft, Lukoil, Novatek and others.

From the standpoint of theory, the payment of dividends by shares and split operations are identical. For example, a 3:2 split would be identical to a 50% share dividend, i.e. for every 100 shares, the owner would receive an additional 50 shares.

Example 17.2

The share capital of the company "Sh" consists of 250,000 ordinary shares, the value of which is currently 84.00 units. a piece. Its net profit for the year amounted to 750,000.00 units. The firm plans to implement a 3:2 share split. How will the price of the share and the welfare of the owners change?

Let's determine the current value of income per share:

EPS = NP / NS = 750,000.00 / 250,000 = 3.00 units

Then the value of the P / E indicator will be:

P/E = 84.00 / 3.00 = 28.

In the event of a share split, the number of shares outstanding and the value of the EPS indicator will be equal to:

NS\u003d 250,000 x 1.5 \u003d 375,000 pieces,

EPS = 750,000.00 / 375,000 = 2.00 units

Accordingly, the cost of one share will be equal to: Р / 2 = 28, whence Р = 56.00 units.

The same value could be obtained in another way: P = 84.00 / 1.5 = 56.00 units.

Thus, a shareholder who owned 100 shares worth 84.00 units will have 150 shares (i.e. 1.5 times more) worth 56.00 units after the split. (i.e. 1.5 times less). It is easy to see that a 3:2 split operation is equivalent to paying a 50% dividend in the form of shares. At the same time, the wealth of the owners and the value of the firm do not change.

Despite the fact that the split operation does not directly affect the value of the firm, in practice, stock prices often rise in the short term due to the increased interest of small and portfolio investors.

As another alternative to paying cash dividends, a firm can distribute income among owners by redemption of a part of own shares. As a result, the number of shares outstanding decreases and earnings EPS increases per share.

This allows you to automatically increase the amount of profit on the remaining shares and increase the dividend payout ratio in the coming period. In addition, the purchase of own shares usually leads to an increase in their price, bringing additional income to shareholders in the form of capital gains.

Example 17.3

The amount of free funds of corporation "T" available for distribution is 50,000,000.00 units. There are 10,000,000 shares in circulation. The current value of one share is 25.00 units; expected earnings per share - 2.50 units. The planned dividend per share is set at 5.00 units. An alternative to paying dividends in cash is to buy back your own shares from the market at current price. How will the welfare of the owners change depending on the decisions made by the management?

In case of payment of dividends in cash, each owner will receive 5.00 units. per share. At the closing date of the register, the value of the shares will decrease by the amount of the dividend equal to

25.00 - 5.00 = 20.00 units

Accordingly, the welfare of the owner of one share after the payment of dividends will be

R+DIV= 20.00 + 5.00 = 25.00 units

With available funds, the corporation can buy

50,000,000.00 / 25.00 = 2,000,000.00 pcs.

The value of one share after the redemption operation

Thus, the welfare of shareholders will not change. In the first case, each shareholder will own a share worth 20.00 units. and cash in the amount of 5.00 units, in the second - a share worth 25.00 units.

The repurchased shares are called treasury stocks and can be re-sold among current or new owners, used for manager motivation programs, reserved for the issuance of convertible bonds or placement on foreign markets (for example, as part of programs ADR and GDR) or repaid. Under Russian law, treasury shares do not have the right to vote, are not counted in the vote count, do not accrue dividends, and can be on the company's balance sheet for no more than a year.

Share buybacks reduce excess cash as well as increase financial leverage and can lead to a more optimal capital structure. Finally, it is one of the ways to protect against hostile takeovers.

In general, share repurchases are a positive signal for the market. It is usually carried out in the following main ways:

buying on the open market;

purchase of a block of shares from a large holder, as a rule, an institutional investor 3 ;

tender announcement - purchase at a special price from existing shareholders.

Share buyback is a popular form of dividend payment in foreign practice. At present, such a policy is increasingly being applied by domestic enterprises.

In 2005, JSC Mikhailovsky GOK bought out 10% of its shares, directing all earned profit to this operation. In its economic essence, such an operation is equivalent to the payment of all profits to shareholders, i.e., a 100% dividend payout ratio!

A similar operation was carried out by another well-known Russian enterprise, OJSC Norilsk Nickel. During its implementation, about 10.8% of the shares were purchased at a price that exceeded the market price. Subsequently, these shares (which became treasury shares) were redeemed, and the authorized capital of OJSC Norilsk Nickel was reduced by 10.8%.

Large-scale share buyback programs during 2006-2008. sold by OJSC Lukoil, MTS, Polyus Gold, etc.

One of the effects of such operations in the short term may be an increase in the capitalization of the company.

At the beginning of September 2006, the Board of Directors of MTS OJSC approved a program to buy back about 10% of its ADRs on the New York stock exchange within 12 months. The announcement of this news literally blew up the market - in 1 day (September 5, 2006) the capitalization of 4 companies increased by $1 billion!

At the same time, not everyone, even very well-known firms, manages to “fix” the results achieved in this way.

In the second quarter of 2006, British Petroleum bought back about 2% of its shares for $4.5 billion. However, over the next three months, its market capitalization fell by 5.85%.

Despite the positive effects associated with the buyback of shares, such transactions are generally one-time events and cannot be carried out periodically.

The main methods of dividend payments in world practice include:

• 1) constant percentage distribution of profits;
• 2) fixed dividend payments;
• 3) payment of the guaranteed minimum and extra-dividends;
• 4) a constant increase in the amount of dividends;
• 5) payment of dividends on a residual basis;
• 6) payment of dividends by shares.

Let's take a closer look at each of the dividend payment methods.

1. The method of constant percentage distribution of profits (or a stable level of dividends) implies a stable percentage of net profit for a long time directed to the payment of dividends on ordinary shares. At the same time, one of the main analytical indicators is the dividend yield ratio (Kdv), those. the ratio of the dividend per one ordinary share (Add share) to the profit due per one ordinary share (Pb share):

Kdv \u003d Add akts / Pob akts.

In accordance with this methodology, dividends on ordinary shares are not paid in cases where the company ended the current year with a loss or all profits must be directed to the owners of bonds and preferred shares.

In addition, the amount of dividends determined in this way can fluctuate significantly from year to year depending on the profit of the current year, which cannot but affect the market value of shares.

2. The method of fixed dividend payments (or a stable amount of dividend payments) implies a regular payment of dividends per share in the same amount for a long time, regardless of changes in the market value of shares.

At high inflation rates, the amount of dividend payments is adjusted for the inflation index. If the company is developing successfully and the amount of annual profit exceeds the amount of funds required to pay dividends at a stable level, then the fixed dividend payout per share can be increased.

The advantage of this technique is a sense of reliability, which gives shareholders a sense of confidence in the invariability of the amount of current income, regardless of various circumstances, and avoids fluctuations in the stock market value on the stock market (which is typical, for example, for the first technique).

The disadvantage of this policy is a weak connection with the financial results of activities, therefore, during periods of unfavorable market conditions and a decrease in the profit of the current year, the enterprise may not have enough own funds for investment, financial, and even core activities. To avoid negative consequences, the fixed amount of dividends is set, as a rule, at a relatively low level in order to reduce the risk of a decrease in the financial stability of the enterprise due to insufficient equity growth rates.

3. The guaranteed minimum and extra dividend payment methodology provides for regular payment of a fixed amount of dividends. In case of favorable market conditions and a large amount of profit of the current year, extra dividends are paid to shareholders.

Thus, the current income of shareholders consists of annually received dividends fixed at a minimum level and periodically paid out depending on the financial results of the reporting year, extra-dividends.

The advantages of this methodology are a stable guaranteed payment of dividends in the minimum prescribed amount (similar to the method of fixed dividend payments), a high connection with the financial results of the enterprise, which allows increasing the amount of dividends in favorable years without reducing investment activity.

With an unstable economic situation and significant fluctuations in the size of the profit received by the enterprise, this technique seems to be the most effective. Its main drawback is that with prolonged payment of minimum fixed dividends (without a premium in certain periods), the investment attractiveness of the company's shares decreases, and with regular payments of extra-dividends, their stimulating effect on shareholders decreases and the difference between this policy and the method of fixed dividend payments disappears. .

4. The method of constant increase in the amount of dividends provides for a stable increase in the level of dividend payments per share. As a rule, the increase in the amount of dividends is made in a fixed percentage of their level in the previous period.

The advantages of a policy of constant increase in the size of dividends for shareholders are obvious, in addition, this ensures a high market value of the company's shares, their attractiveness in the eyes of investors with additional issues.

The disadvantages of the methodology are its inflexibility (since the size of dividend payments increases regularly, regardless of financial results, even during periods of no profit) and the constant increase in financial tension. Lagging behind the growth rate of profit from the growth rate of dividend payments means a reduction in the amount of reinvested profit, curtailment of investment activities, and a decrease in the financial stability of the enterprise. An indispensable condition for the implementation of this technique in practice is the outstripping growth of profits compared to dividend payments.

5. The method of paying dividends according to the residual principle provides for the payment of dividends in the last turn, after financing all effective investment projects. The dividend payment fund is formed after a sufficient amount of financial resources has been formed from the profit of the reporting year, which ensures the full implementation of the investment opportunities of the enterprise.

If, according to the supposed investment projects internal norm return exceeds the weighted average cost of capital, then the profit is directed to finance these projects, since they provide high rates increase in the value of share capital.

The advantages of this technique are to ensure high rates of development of the enterprise, increase its market value, and maintain financial stability. This method of dividend payments is usually used during periods of increased investment activity at the initial stages of enterprise development.

The disadvantages of the technique are obvious:

*payment of dividends is not guaranteed, regular;

the amount of dividends is not fixed, it varies depending on the financial results of the past year and the amount of own resources allocated for investment purposes;

Dividends are paid if the company has profits that are not claimed for capital investments.

The market value of shares of enterprises paying dividends on a residual basis is usually low.

6. The methodology for paying dividends in shares provides for the issuance of an additional block of shares to shareholders instead of cash.

The amount of such dividends is equal to the amount of the reduction of funds capitalized in the authorized capital and reserves. This approach, under certain conditions, can satisfy shareholders, since the securities they receive as dividend payments can be sold on the stock market. Legally, the sale of shares is regarded as a sale of capital and is subject to taxation at the rate of tax on capital income.

The payment of dividends by shares can be carried out either at the same size of the authorized capital and the balance sheet currency, i.e. simple redistribution of sources of own funds, or with a simultaneous increase in the authorized capital and balance sheet.

In the first case, the increase in the liability of the authorized capital is carried out by reducing share premium and retained earnings of previous years. If the number of shares in circulation increases, and the total amount of sources of funds (balance sheet currency) does not change, then the value of assets per share decreases.

In the second option (issues of ordinary shares with a simultaneous increase in authorized capital), an additional issue of shares does not lead to a reduction in the value of assets per share and, as a rule, does not lead to a decrease in the market value of shares.

When using this technique, the dynamics of the market rate of securities is the least predictable. The small amount of dividends paid out in this way usually has no effect on the market value of the shares. If dividends are significant, then the market price of shares after the additional issue may fall significantly.

Often, enterprises are forced to resort to this method of dividend payments, for example, in case of unstable financial position and the absence of highly liquid assets for settlements with shareholders or, if necessary, reinvestment of the profit of the reporting year in a highly effective project.

In accordance with Russian law, a joint-stock company is entitled to pay dividends in shares only if it is provided for by its charter.

In general, all the considered methods of paying dividends can be grouped into three main approaches to the formation of a dividend policy: conservative, moderate (compromise) and aggressive.

The conservative type corresponds to the methods of paying dividends according to the residual principle and fixed dividend payments.

The moderate (compromise) type corresponds to the method of paying a guaranteed minimum and extra dividends.

The aggressive type corresponds to the methods of constant percentage distribution of profits and the constant increase in the size of dividends.

The policy of dividend payments through the payment of dividends by shares is determined by so many factors that it cannot be unambiguously attributed to any of these types.