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Dividend Reinvestment Programs as an Instrument of Dividend Payment Policy in a Joint Stock Company
Abstract
Theoretical background: The issue of automatic dividend reinvestment programs is rarely discussed in Polish literature, there are no comprehensive studies on automatic dividend reinvestment programs. This issue most often appears when discussing the tools of dividend policy.
Purpose of the article: Presentation of the assumptions of automatic dividend reinvestment programs (plans), which can be an instrument of the dividend payment policy in a joint stock company, as well as analysis of the automatic dividend reinvestment programs offered by 30 American companies representing Dow Jones Industrial Average Index.
Research methods: The study is based on a literature review and a documents (brochures) analysis describing dividend reinvestment programs.
Main findings: Dividend reinvestment programs have been implemented by all companies included in the Dow Jones Industrial Average Index. A significant part of the analyzed programs belongs to the group of the so-called No-Fee Dividend Reinvestment Programs. The observations made show that often dividend reinvestment programs are supplemented by additional share purchase programs called Optional Cash Purchase Plans (OCPs) or Stock Purchase Plans (SPPs).
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STRONY INTERNETOWE
https://directinvesting.com/index.cfm
www-us.computershare.com/Investor/#DirectStock
DOI: http://dx.doi.org/10.17951/h.2020.54.4.55-68
Date of publication: 2020-12-29 19:34:57
Date of submission: 2020-11-11 22:39:38
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