Discuss the pros and cons of having the directors formally announce a firm's future dividend policy.

It tells the investors what the organization is considering and where they are anticipating going. It will pull in the correct arrangement of customers and it will likewise dispose of any uncertainty or vulnerability. Dividend policy is the arrangement of rules an organization uses to choose the amount of its income it will pay out to investors. Some confirmation proposes that financial specialists are not worried about an organization's profit approach since they can offer a segment of their arrangement of values on the off chance that they need money.