On 11 January 2022, the session began with a story, by the resource speaker Prof. Pradeep K.V who explained the journey of Infosys in wealth creation over the years. Corporate actions like bonus issues, stock split, dividend policy, rights issue and buyback of shares have strong impact on the stock prices of a company. Each firm follows its dividend policy based on the yield, Price Earning Ratio, and growth rate while sharing profits to its shareholders.
A comparative analysis was done on high dividend firms and low dividend payment firms to understand the variations in dividend payments. The life cycle of a company consists of its launch, growth, shakeout, maturity, and decline stages. A shareholder prior to investment plans needs to consider the financial position of the company in each of these stages. The dividend policy of any firm depends largely on the life cycle of the company. The presentation also explained the key terms like dividend declaration date, ex-date, record date, and dividend payout date. Normally a company pays dividends on its profits while in certain situations a company can also declare special dividends to its shareholders.
The speaker also briefed on the secrets of wealth creation through examples. It is dependent on the quality of a business or the efficiency of its management, robust growth of the firm, competitive advantage, and value creation in the long run. The lecture was very informative and helped to clarify the understanding of stock prices and their impact.
At the end of the Session, participants raised a few questions, which were answered by the speaker. Dr Rajani Ramdas who welcomed the speaker during the beginning of the session also expressed words of appreciation and gratitude as a concluding note.