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BRILLIANT’S Dividend Decision 237

dividends in future also. This is a positive signal g§Ho$V h¡ VWm BgH$m ñQ>m°H$ H$s H$s_Vm| na XrK©H$mcrZ
for the market and it has long term effect on à^md ahoJmŸ&
stock prices.
3. Difference in Attitudes of Investors: 3. BZdoñQ>g© Ho$ {^Þ ì`dhma: BZdoñQ>g© H$s
Investor’s preferences are different. Some want àmW{_H$VmE| {^Þ hmoVr h¡Ÿ& Hw$N> BZdoñQ>g© Á`mXm {S>{dS>oÝS
more dividend income, others want more BÝH$‘ MmhVo h¢ O~{H$ Hw$N> Á`mXm ny±Or cm^ MmhVo h¢ VWm
capital gain, while others want a balanced mix AÝ` {S>{dS>oÝS Am` Ed§ n±yOr àm°[\$Q> H$m EH$ g§Vw{cV
of dividend income and capital gains. Some are {_lU MmhVo h¢Ÿ& Hw$N> BZdoñQ>g© {MqVV ahVo h¢ {H$ _¡ZoO_oÝQ>
worried that management may spend money
over uneconomical projects. Keeping in view AZBH$m°Zm°{_H$c àmoOoŠQ²>g na {Zdoe H$a gH$Vm h¡Ÿ& ì`dhmam|
the differences in attitudes, it is better for the _| {^ÞVm H$mo Ü`mZ _| aIVo hþE, à~§YZ Ho$ {cE `h ~ohVa
management to pay dividend every year to hmoJm {H$ A{YH$m§e BZdoñQ>g© H$mo gÝVwï> H$aZo Ho$ {cE dh
satisfy majority of investors. {S>{dS>oÝS H$m ^wJVmZ à{V df© H$aoŸ&
Forms of Dividend {S>{dS>oÝS> Ho$ àH$ma

Mostly dividends are paid in cash but A{YH$m§eV: {S>{dS>oÝS> H$m ^wJVmZ H¡$e _| {H$`m OmVm
there are also other forms such as Scrip h¡ naÝVw BgHo$ Hw$N> AÝ` àH$ma ^r h¡ O¡go pñH«$n {S>{dS>oÝS²>g,
dividends, Debenture dividends, Stock {S>~oÝMa {S>{dS>oÝS²>g, ñQ>m°H$ {S>{dS>oÝS²>g Am¡a àm°nQ>u
dividends and Property dividends. {S>{dS>oÝS²>gŸ&
1. Scrip Dividends: If the company is not 1. pñH«$n {S>{dS>oÝS²>g: `{X H$ånZr Ho$ nmg n`m©á
having a comfortable cash position, it may H¡$e nmo{OeZ Zht hmoVr Vmo dh àm°{_gar ZmoQ²>g Bí`y H$a
issue promissory notes payable in a few gH$Vr h¡ Omo Hw$N> _hrZm| _| Xo` hmoVo h¢Ÿ& dh H$Ýd{Q>©~c
months. It may also issue convertible dividend {S>{dS>oÝS> dma§Q²>g ^r Bí`y H$a gH$Vr h¡ Omo Hw$N> dfm] _|
warrants redeemable in few years.
[aS>r_o~c hmoVo h¢Ÿ&
2. Debenture Dividends: Companies may 2. {S>~oÝMa {S>{dS>oÝS²>g: H$ån{Z`m± AnZo eo`ahmoëS>g©
issue debentures, in lieu of dividend to their H$mo {S>{dS>oÝS> Ho$ ~Xco _| {S>~oÝMg© Bí`y H$a gH$Vr h¡Ÿ& `h
shareholders. It is just like creating a long term EH$ cm§J Q>_© S>oãQ> ~ZmZo Ho$ g_mZ h¡ naÝVw gm_mÝ`V: Bg
debt but this is not a common practice.
Vah H$s na§nam àM{cV Zht h¡Ÿ&
3. Stock of Bonus Shares: Instead of paying 3. ñQ>m°H$ Am°\$ ~moZg eo`g©: {S>{dS>oÝS²>g H$m ^wJVmZ
dividends, sometimes it is capitalized by issue Ho$ ~Om`, H$^r-H$^r Bgo eo`a hmoëS>g© H$mo ~moZg eo`g©
of Bonus shares to the shareholders. The Bí`y H$aHo$ H¡${nQ>cmBÁS> {H$`m OmVm h¡Ÿ& eo`a hmoëS>g© CZ
shareholders can retain that bonus shares or ~moZg eo`g© H$mo AnZo nmg aI gH$Vo h¢ `m CÝh| _mH}$Q> _|
they can sell them in market and realize cash.
Normally bonus shares are not ~oMH$a H¡$e àmá H$a gH$Vo h¢Ÿ& gm_mÝ`V:,
issued for dividends. Forms of Dividend ~moZg eo`g© {S>{dS>oÝS²>g Ho$ {cE Zht Bí`y
4. Property Dividends: It is 1. Scrip Dividends {H$E OmVoŸ&
also an unusual form of dividend, 2. Debenture Dividends 4. àm°nQ>u {S>{dS>oÝS²>g: `h ^r
3. Stock of Bonus Shares {S>{dS>oÝS> H$m EH$ Agm_mÝ` àH$ma h¡& `h
such dividend may be in the form
4. Property Dividends
of inventory or securities, in lieu {S>{dS>oÝS> H¡$e no_oÝQ> Ho$ ~Xco _| BÝdoñQ´>r
of cash payment. Sometimes a `m {gŠ`y[aQ>rO Ho$ ê$n _| hmo gH$Vm h¡Ÿ& H$^r-H$^r EH$