Initially some words about the companies this paper will analyse. BP p.l.c. is the holding company of one of the world largest petroleum and petrochemicals groups (BP p.l.c., 2003). Logica “provides an all-embracing portfolio of services from strategic consultancy and products to systems integration, solutions delivery and business process outsourcing” (Logica, 2002, front cover inside). It is important to state that Logica Plc and CMG Plc have merged to LogicaCMG on the 30th December 2002 (LogicaCMG, 2003).
Inhaltsverzeichnis (Table of Contents)
- Analyse the policy that each firm has regarding payment of dividends/retention of profits and discuss any trends or relationships that appear to exist between dividends and profits.
- Compare and contrast the dividend policies of the two companies.
- Prepare a critical review of the theories relating to dividend policy and identify the extent to which, if at all, the dividend policy of each of the two companies can be explained by the theories you have reviewed.
- Reflect on the skills that you have developed in completing this assignment.
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the dividend policies of two companies, BP and Logica, and compare and contrast their approaches. The paper further examines relevant theories on dividend policy and assesses their applicability to the observed policies of the companies.
- Dividend policy and its relationship to profit retention
- Trends and relationships between dividends and profits
- Comparison of dividend policies across different sectors
- Theories of dividend policy and their practical application
- The role of retained earnings in financing growth
Zusammenfassung der Kapitel (Chapter Summaries)
The first part of the paper analyzes the dividend policies of BP and Logica, examining trends and relationships between dividends and profits. The paper presents data on earnings and dividends per share, as well as growth rates and payout ratios for both companies.
The second part of the paper compares and contrasts the dividend policies of the two companies, highlighting key differences in their growth rates, payout ratios, and overall approaches. This section also discusses the influence of the companies' operating sectors on their dividend policies.
Schlüsselwörter (Keywords)
This paper examines the dividend policies of BP and Logica, focusing on themes such as earnings and dividends, growth rates, payout ratios, and relevant theories of dividend policy. It also explores the role of retained earnings in financing growth and the impact of sector-specific factors on dividend decisions.
- Quote paper
- Isabell Keil (Author), 2003, Dividend Policy of Logica and BP AMOCO, Munich, GRIN Verlag, https://www.grin.com/document/28898
