The Dividend Policy of the Company

<p>&nbsp;</p><p><strong>Abstract.</strong></p><p>&nbsp;</p><p>Dividend policy is an important component of the financial policy of a joint-stock company. The theoretical bases of the dividend policy as well as the dividend policy of the oil-and-gas companies are analyzed in this paper.</p><p>The object of this study is the dividend policy of the company. The purpose of this study is the analysis of theoretical and practical aspects of the dividend policy of the company.</p><p>The concept, the essence, the main theories and types of dividend policy are considered in the theoretical part of the study.</p><p>The practical part of the research is devoted to the analysis of the impact of dividend policy on the security valuation of investment. The analysis is carried out by the example of three Russian oil companies: LUKOIL, Rosneft and Surgutneftegaz using the methods of correlation-and-regression and indicator analysis. The empirical base is formed on the basis of the information provided on the official websites of companies (including the data of the accounting reporting according to IFRS), as well as data of analytical agencies: &quot;Investcafe&quot; and portal &quot;Яндекс.Новости&quot; (section &quot;Quotation&quot;).</p><p>Correlation-regression analysis confirmed that the prices of the company&#39;s shares strongly and positively depend on the size of dividends per share. This suggests that the effective dividend policy is needed to obtain high results of the company operation, that is, effective dividend policy is an integral part of the high-performance functioning of the joint-stock company.</p><p>Indicator analysis of the dividend policy showed that all three companies have quite good dynamics of indicators, which indicates the high efficiency of the dividend policy and high investment attractiveness of the shares of the companies. It should also be noted that the company &quot;LUKOIL&quot; has the highest DPS, EPS and DY, which give evidence of its well-developed dividend policy and about special attractiveness for investors.</p>