A COMPREHENSIVE ANALYSIS OF DIVIDEND POLICIES: EVALUATING THEIR IMPACT ON SHAREHOLDER VALUE AND CORPORATE PERFORMANCE AT INDIABULLS

Abstract

Dividend analysis is an essential aspect of equity research that focuses on evaluating a company’s dividend policy, payout trends, and their impact on investor returns and market perception. This study aims to understand how dividend decisions reflect a company’s financial health, profitability, and long-term value creation strategy. By analyzing dividend-related ratios such as Dividend Payout Ratio, Dividend Yield, Earnings Per Share (EPS), and Retention Ratio, the research assesses the consistency and sustainability of dividend distributions across selected companies. The study further explores the relevance of dividend theories such as Walter’s Model, Gordon’s Model, and Modigliani-Miller’s Dividend Irrelevance Theory to understand how dividend policies influence shareholder value and investment decisions. Empirical data is used to compare the dividend performance of companies from different sectors over recent financial years. The findings reveal that companies with stable and growing dividend payouts tend to attract long-term investors and reflect sound financial management. The study concludes that dividend analysis serves as a useful tool for investors to evaluate income-generating potential, risk appetite, and the overall financial discipline of a firm.