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residual dividend policy

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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February 27, 2021 at 1:06 pm #611984
Noah098
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sir how do we know if a company is following residual dividend policy? Any way to find out, or clues?
February 27, 2021 at 3:25 pm #612006
John Moffat
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Other than any wording about it in the question, looking at the information in past statements and seeing whether the company is using profits to increase their cash balances as opposed to either distributing it or using it for new capital investment.
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