We are excited to offer our readers a physical version of our piece, “Dividend Policy in 30 Minutes: A Guide for Family Business Directors and Shareholders.”

From the perspective of family shareholders, dividend policy is the most transparent element of corporate finance. Dividend policy addresses both how much cash flow should be distributed to shareholders and the ideal form of such distributions.

In the context of a family business’s life cycle, directors can use dividend policy to manage the company’s capital structure and tailor the form of returns to better match family shareholder preferences. Diverse shareholder preferences and characteristics can enhance the attractiveness of share repurchases relative to dividends; however, executing share repurchases for family businesses brings its own set of considerations and challenges.

The purpose of this booklet is to help family business directors formulate and communicate a dividend policy that contributes to family shareholder wealth and satisfaction. We hope this provides a helpful resource for you and your fellow directors and shareholders.

You can download a digital version of the booklet here, or you can request a physical copy of the booklet here.