Are deferred dividend policies and policy of not paying a dividend real dividend policies?

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Expert Solution

A deferred dividend policy is related to insurance. Under this policy insured will not get any dividend till the expiry period of dividend. In the case of death of the policy holder and the policy is paid to them within the period the dividend amount accumulated on the policy will lost . Dividend period are usually multiple of five.

Whereas No dividend policy is related to companies and shareholders. In such policies company does not pay or distribute any dividend to shareholders and the same amount is reinvested in the business or retained in the business which will results in the appreciation of price of shares.

jeff jeffy answered 1 year ago

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