Abstract

FORECAST ANALYSIS OF DIVIDEND IN THE SELECTED STEEL COMPANIES IN INDIA

Dr. M. Krishnamoorthi

Volume: 6 Issue: 2 2016

Abstract:

The Indian Iron and Steel industry contributes significantly to the overall growth and development of the economy. As per the estimation of the ministry of steel, the industry today directly contributes to 2% of India’s GDP. Payment of dividend is desirable because the shareholders contribute in the capital of the company to earn higher returns from their investment and to maximize their wealth. In this, retained earnings are the major sources of internal finance for financing future requirement such as expansion and modernisation of the company. Hence, both business growth and dividends are desirable. On the contrary, higher dividend leads to less provision of funds for growth and higher retained earnings leads to low dividends which majority of shareholders dissatisfies from return on investment, from the analysis it found that the dividend ratios such as Dividend Payout Ratio, Dividend Per Share, Earning Per Share differ significally between largecap companies and midcap companies.

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