Clear dividend policies in vogue

THERE is a promising trend in initial public offerings (IPOs) for companies to distinctly state their dividend policies as investors have become more demanding in respect of visibility of financial returns.  

Bursa Malaysia-listed companies are not required to disclose their dividend policy but companies are starting to do so in their IPO prospectuses. Basically, this involves explaining how much of earnings will be issued as dividends each year. This is known as the payout ratio.