Dividend Policy And Its Impact On Share Price Valuation (a Case Study Of Union Bank Of Nigeria Plc)

ABSTRACTThis study reveals that choice of dividend policy is a financial management decision that deserves a great care to strike and maintain a balance between:- 1.Paying out earnings (or part) to the stockholder. 2.Retaining it for reinvestments by the firm. Ordinarily, the objectives above represent two different interest groups viz. The investor clamorous for high dividend pay-out, the investment (the firm) otherwise, higher dividend pay-out, means higher cash flow to the investors, which is good, but a lower future growth of the firm which on the other hand. Therefore, an optional dividen…