ANALYSIS OF SOME FACTORS INFLUENCED BY DIVIDEND POLICY ON THE VALUE OF COMPANIES' SHARES

Abstract

Against the background of the growth of profitability of banking instruments, public companies are facing new challenges: how to maintain the level of investment attractiveness of securities issued by these structures in comparison with more accessible banking products. The classic practice, which consisted in the fact that issuers offer dividend yield higher than bank deposits in today's economic conditions, is not always feasible in practice. This also applies to blue chips - well-known companies with a long history and relatively stable financial indicators, such as Sberbank or Lukoil, which for a long time acted as an analogue of dividend aristocrats of Western economies. At the same time, it is obvious that for an investor, dividends remain the only opportunity to receive cash without selling assets from their portfolio. This factor seems key for individuals using dividend income as passive income. In modern financial science, there are different views on the implementation of dividend policy for modern corporations. Practice shows that a sustainable dividend policy is important: it performs an information function in the market, reports on the financial position of the company, its financial discipline and the quality of corporate governance, affects the investment attractiveness of the company and contributes to its sustainable development. The article considers the main approaches to the practice of dividend policy, assesses the significance of decisions on the payment or non-payment of dividends, determines the role of measures to form the company's dividend policy and the market reaction to it. In addition, the focus of the study is the study of the reaction of shareholders and potential investors following the announcement of dividend payments. The importance of dividend policy for increasing the stability of investment and financial activities is substantiated.