Review of Dividends Policy

Running Head : Progressive dividend Policy

Student 's Name

Course Code , Semester , Year

Tutor

February 11 , 2009

Analyze the three factors that Progressive Corporation will use to calculate dividends

Dividends are the profits and benefits enjoyed by shareholders of a company . A company 's owners are the shareholders and the more shares a person has , the greater say they have in the company . For example if one owns 8 of the company the shareholder is entitled to 8 of the votes at any shareholders meeting and also 8 of the

profits which will be distributed as dividends . An individual can get the best out of his /her investments by investing in companies whose share prices rise and this rise will make the value of their dividends to increase

A good investment is one where the profits rise year by year and the dividends paid out of those profits similarly rises , making the shares more attractive thus , more investors want to buy and the share price goes up further . Profits , dividends and share prices often move in the same direction and in roughly equal measure . According to Hobson in his book (Shares Made Simple

.91 , Progressive dividends will vary according to gain share factor-based on the performance of the company ' Progressive dividends are the dividends that increase year by year . This is great for investors because the rising payout will offset the effects of inflation (Hobson , 2007 .Dividends are paid out of what are called distributable reserves which is the cash...