DIVIDEND POLICY

TATA STEEL & JINDAL STEEL
PRESENTED BY:
S.KRUTHIKA-25 ADHEIP BAKSHI-44 ISHA GOGAWAT-26 ESHITA ZATAKIA-14 TRUSHNA DESAI-59 SHIVRAJ YADAV-43

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 . and how frequent. . how much.  It also has an impact on investors and perceptions of the company in the financial markets.

VARIOUS DIVIDEND POLICIES y Generous dividend and bonus policy y Fixed dividend policy y Erratic dividend policy .

TYPES OF DIVIDEND  Regular dividend  Interim dividend  Stock dividend  Scrip dividend  Bond dividend  Property dividend .

FACTORS AFFECTING DIVIDEND POLICY y Stability of earnings y Age of corporation y Liquidity of funds y Need for additional capital y Taxation policy y Government policy y Past dividend rates y Time for payment of dividend .

33 billion y Net profit of US$2.74 billion .TATA STEEL y It was formerly known as TISCO y It was founded in 1907 y World¶s 7th largest steel company y Consolidated revenue of US$29.

JINDAL STEEL y Initially named as orbit strips ltd. power. oil and gas and infrastructure. y Annual turnover of over US $2. .1 billion y One of the largest steel producers in India with 12 plants in India and 2 in USA. y Leading player in steel. mining.

DIVIDEND IN % 600 500 400 300 200 100 0 2010 2009 2008 Jindal Steel Tata Steel .

Dividend paid 18 16 14 12 10 8 6 4 2 0 2008 2009 2010 TATA JINDAL .

EARNING PER SHARE 180 160 140 120 100 80 60 40 20 0 2008 2009 2010 JINDAL TATA .

PRICE EARNING RATIO 60 50 40 30 20 10 0 2008 2009 2010 JINDAL TATA .

755.25. .COMMENTS y The 52 week high of Tata is Rs. y Jindal steel pays better dividend to its shareholders.448. y The 52 week low of Tata is Rs.737 and that of Jindal is Rs. y The earning per share has increased in 2009 and decreased in 2010 for both the companies.572.65 and that of Jindal is Rs.70.

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