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Abstract
The study titled ‘A Study On Dividend Policy And Its Impact On The Shareholders Wealth In Trading Organization’ focuses on dividend policy and its impact on the wealth of shareholders in the trading industry. For the purpose of this study, a trading company and three of its shareholders’ companies were selected and the dividend policies of these companies were analyzed. This was a descriptive study and the period of study was during the years 2015 to 2017. The tools used for analysis are Dividend per Share, Earnings per Share, Payout ratio and Gordon’s model. At the end of this study, it was found that the dividend policy is relevant in maximising the shareholders’ wealth. Also, many companies were not in a position to declare dividend due to retention for future purposes. It was also found that when the cost of capital decreases, the rate of return increases and this influences the market price per share.