Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 9
First page : ( 27) Last page : ( 36)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2014.00913.X

Dividend Payout Trends in Indian Aluminum Industry: A Comparative Study of HINDALCO and NALCO

Roy Anup Kumar

Research Scholar, Faculty of Commerce, Banaras Hindu University, Varanasi, India

Online published on 6 September, 2014.

Abstract

Dividend decision is one of the important parts of financial management where a firm has to decide that how much of profit should be distributed as dividend to shareholders and how much should be retained in the business for reinvestment purpose. For achieving of the objective of wealth maximization of the firm, a sound dividend policy should be developed by the firm. The present study is an attempt to examine the trends of dividend payout by two leading companies one each from private and public sector of the Aluminum Industry of India. The findings show that the consistency of both the ratios Dividend per Share (DPS) and Dividend Pay-out Ratio (DPR) of HINDALCO is better than NALCO. Size of the business found to be influencing factor in both the companies. Overall, it may be concluded that the dividend payout trends of both the selected companies are satisfactory and NALCO follow liberal Dividend Policy, while HINDALCO focus more on capitalization of profit.

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Keywords

Dividend Payout, Dividend Policy, Dividend per Share (DPR).

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