An analytical study about the impact of dividend practices on performance and shareholders wealth of S and P BSE 200 index companies

Abstract

newline The aim of this investigation is to assess the influence of dividend practices on the wealth of shareholders and the performance of firms that are part of the SandP BSE 200 Index. We aim to develop an understanding of the impact of various dividend policies, including consistent, residual, and irregular payments, on critical financial metrics, including market value, leverage, capitalization, and profitability, through the use of this study. In order to investigate the correlation between dividend payouts and financial metrics including Return on Equity (ROE), Earnings per Share (EPS), and Market Price per Share (MPS), the analysis employs a quantitative methodology and financial data sourced from secondary sources. Investor sentiment is significantly affected by dividend distributions, according to the results.