Analyzing the Effect of Dividend Policy on Shareholder Value: A Comparative Study

This study examines the impact of dividend policies on shareholder value through a comparative analysis of companies operating in different markets and industries. Drawing on secondary data from annual reports and financial databases, it analyzes key dividend indicators-such as payout ratio, dividend yield, and payment frequency-and explores their relationship with measures of shareholder value, including earnings per share (EPS), return on equity (ROE), total shareholder return (TSR), and market capitalization. The research includes companies like Microsoft and TCS to represent developed and emerging markets, Nestlé and Netflix to contrast capital-intensive and service-based industries, and HSBC and ICICI Bank to highlight varying macroeconomic and regulatory environments. The findings reveal that dividend policy is not a one-size-fits-all approach; instead, it must be carefully aligned with a firm’s strategic goals, investor expectations, and external conditions to effectively maximize shareholder value.