Post on 27-Nov-2014
PRESENTED BY: S.KRUTHIKA-25 ADHEIP BAKSHI-44 ISHA GOGAWAT-26 ESHITA ZATAKIA-14 TRUSHNA DESAI-59SHIVRAJ YADAV-43
DIVIDEND POLICY
TATA STEEL & JINDAL STEEL
WHAT IS A DIVIDEND POLICY
The amount that a public company will pay out as dividend to its shareholders.
It will also outline when the dividends will be paid out , how much, and how frequent.
It also has an impact on investors and perceptions of the company in the financial markets.
VARIOUS DIVIDEND POLICIES
Generous dividend and bonus policyFixed dividend policyErratic dividend policy
TYPES OF DIVIDEND
Regular dividend
Interim dividend
Stock dividend
Scrip dividend
Bond dividend
Property dividend
FACTORS AFFECTING DIVIDEND POLICY
Stability of earningsAge of corporationLiquidity of fundsNeed for additional capitalTaxation policyGovernment policyPast dividend ratesTime for payment of dividend
TATA STEEL
It was formerly known as TISCOIt was founded in 1907World’s 7th largest steel companyConsolidated revenue of US$29.33 billionNet profit of US$2.74 billion
JINDAL STEEL
Initially named as orbit strips ltd.Annual turnover of over US $2.1 billionOne of the largest steel producers in India
with 12 plants in India and 2 in USA. Leading player in steel, power, mining, oil
and gas and infrastructure.
DIVIDEND IN %
2010 2009 20080
100
200
300
400
500
600
Jindal SteelTata Steel
Dividend paid
2008 2009 20100
2
4
6
8
10
12
14
16
18
TATAJINDAL
EARNING PER SHARE
2008 2009 20100
20
40
60
80
100
120
140
160
180
JINDALTATA
PRICE EARNING RATIO
2008 2009 20100
10
20
30
40
50
60
JINDALTATA
COMMENTS
The 52 week high of Tata is Rs.737 and that of Jindal is Rs.755.25.
The 52 week low of Tata is Rs.448.65 and that of Jindal is Rs.572.70.
Jindal steel pays better dividend to its shareholders.
The earning per share has increased in 2009 and decreased in 2010 for both the companies.