Dividend policy

Okay kiddo, so let me explain what a dividend policy is.

Have you ever played store before? When you play store, you usually have some money. Let's say you have $10. You can either use all of it to buy something, or you can save some of it for later.

Well, big companies also have money, but it's a lot more than $10. They get this money from people who invest in their company, who give them money to help the company grow. Now, the company has to decide what to do with all this money they have.

One thing they can do is give some of the money they have to these investors who gave them the money in the first place. This is called a dividend.

But the company can't just give all their money away, because they need some of it to keep running the company and make it bigger. They also need to think about what is best for the company and its future.

So, the dividend policy is basically the set of rules that the company follows to decide how much of their money they will give back to the investors, and how much they will keep to use in the company.

Hope that helps, kiddo!