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Planning Dividends in the Enterprise
Sytnyk H. V., Rybak R. I.

Sytnyk, Hanna V., and Rybak, Ruslana I. (2019) “Planning Dividends in the Enterprise.” Business Inform 11:234–240.
https://doi.org/10.32983/2222-4459-2019-11-234-240

Section: Economics of Enterprise

UDC 658.147

Abstract:
The article is aimed at substantiating the principles and a methodical approach to planning dividends in the enterprise, which would provide ability to ensure the enterprise’s balanced financial development, would facilitate a growth of investment attractiveness and market value. The article considers the basic concepts of planning dividends, which were formed in the classical economic theory. The position and desire of different types of shareholders regarding the payments or capitalization of dividends are clarified. The principles of planning dividends are allocated and a coherence of planning dividends is proposed based on these principles. It is proposed to plan the amount of dividend payments that an enterprise can afford according to the needs of operating and investment activities on the basis of the indicator of the «level of reinvestment of the net money flow from operating activities». A substantiation of the allowable amount of dividends is based on this indicator and the planned indicators of the net money flow from operating activities, growth of fixed assets, non-material assets, unfinished capital investments and net working capital. The dividend payments ratio and the planned amount of dividends are proposed to define on the basis of the need to ensure the planned volume of the enterprise’s activities on the basis of a sustainable growth model. The final decision as to the substantiation of the amount of dividends is made within the obtained area of the values of planned dividend payments. Prospects for further researches in this direction are in-depth planning of dividends on a multi-criteria basis, which is reduced to substantiating their volumes according to the following criteria: maximizing the satisfaction of the financial interests of owners that give an advantage to the current income; ensuring the sustainable growth; preserving the financial equilibrium; minimizing the weighted average cost of capital. Also it is provisioned to find the target value of dividends by carrying out simulation modeling within certain limits.

Keywords: dividends, dividend payments, level of reinvestment of net money flow, ratio of dividend payments, area of values of the planned amount of dividend payments.

Fig.: 1. Tabl.: 1. Formulae: 5. Bibl.: 13.

Sytnyk Hanna V. – Doctor of Sciences (Economics), Professor, Professor, Department of Economics and Finance of Enterprise, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]
Rybak Ruslana I. – Senior Lecturer, Department of Economics and Finance of Enterprise, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]

List of references in article

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Derevinska, N. V., and Ishchenko, N. A. “Dyvidendna polityka pidpryiemstva ta otsinka yii efektyvnosti“ [Dividend Policy of an Enterprise and Evaluation of its Effectiveness]. Naukovi zapysky, no. 20 (2016): 48-52.
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Khiggins, R. S. Finansovyy analiz: instrumenty dlya prinyatiya biznes-resheniy [Financial Analysis: Tools for Making Business Decisions]. Moscow: OOO «ID Vilyams», 2007.

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