An analysis on dividend policy of sakthi finance limited with special reference to Coimbatore region Ms. Kirithikaa M.*, Dr. Gnanadevan J.** *M. Com (FCA), Assistant Professor of Commerce, Department of Commerce, Rathinam College of Arts and Science (Autonomous), Coimbatore, Tamil Nadu, India **Ph. D, Assistant Professor of Commerce, Department of Commerce, Rathinam College of Arts and Science (Autonomous), Coimbatore, Tamil Nadu, India Online published on 24 October, 2019. Abstract The dividend policy remains a controversial issue. Framing a sound dividend policy is a challenging task for a finance manager. In India, few studies have analyzed the relationship between the firm's value and dividend payment. Net earnings (Firm's Profits) are divided into two parts-retained earnings and dividends. The retained earnings of the business may be reinvested and treated as retained earning which is a source of long-term funds. On the other hand, the dividend should be distributed to the shareholders in order to maximize their wealth as they have invested their money in the expectation of being made better off financially. Though it is difficult to reconcile the conflict interest of different types of shareholders, a company should adopt a dividend policy after taking into consideration the interest of various groups of shareholders. Top Keywords Dividend Policy, Market Value, Shareholders wealth, Sakthi Finance Limited. Top |