Dividend policy is a company’s decision on the amount of capital to return to shareholders. The total dividends paid out of a corporation have a direct impact on the amount of equity in the company’s capital structure, the company’s weighted average cost of capital and, thus, a company’s investment decisions.
For this discussion forum, the publicly traded company that will be used is: Chevron Corporation (CVX).
- Identify the most recent dividend per share, as well as declaration date, the ex-dividend date, the record date, the payment date, and the frequency of dividends (e.g., quarterly, annual, etc.).
- Calculate the company’s dividend payout ratio and provide your calculations in a table in your post.
- Explain what dividend policy the company uses (e.g., passive residual, stable dollar, constant payout, etc.).
- Provide evidence supporting the explanation of Chevron’s dividend policy.
- Determine whether the company paid dividends throughout 2020 or if the dividends were suspended at any time.
- Pose one question you have about dividend policy.