Characteristics of the dividend policy of public companies in the Russian Federation. Modern problems and prospects for the development of the dividend policy of corporations in the Russian Federation Improving the dividend policy of Russian companies

In recent years, the dividend policy of big business is approaching the corporate governance standards adopted in the West. The conductors of these standards are traditionally "blue chips", but in 2006. some “second tier” companies have taken significant steps towards approaching the world standards of dividend culture by setting a minimum share of net profit allocated to dividend payments in the amount of 15% (MMK, NOVATEK)

Dividend payments of companies have been under the supervision of regulatory authorities for the past few years. In July 2004 amendments were adopted to the Law “On Joint Stock Companies” concerning the determination of the base for calculating dividends, which excluded the possibility of underestimation of net profit by Russian companies. An illustrative example of the use of such opportunities among Russian companies before the adoption of these amendments was Surgutneftegaz. The company reduced the amount of net profit, which serves as the basis for the payment of dividends, by including capital investments and deductions to various funds in expenses. In addition, Surgutneftegaz often closed the register retroactively. The history of Surgutneftegaz is an illustrative example of the infringement of the rights of minority shareholders in matters of dividend payment. Dividends on preferred shares of Surgutneftegaz traditionally did not exceed 1% of actual profit.

Let's consider the current situation on dividend payments among oil companies and determine their type of dividend policy. Data for analysis are given in Table 1:

Table 1. Dividend payments of Russian companies in the oil sector

After analyzing the data in the table, we see that in the oil sector the share of accrued dividends is about 27% of net profit (15.5% if we exclude the extreme value of JSC Bashneft), while fluctuations in this share vary greatly by company - from 12 to 97% . The dividend yield indicator has a smaller spread and amounts to 4.5% taking into account the extreme value of Bashneft and 2.6% if the value of this company is excluded from the sample. Dividend yield reflects the low level of return received by shareholders, compared to the change in the market value of shares, often reaching hundreds of percent.

With the help of their regulatory documents (charters, regulations on dividend policy), Russian joint-stock companies provide shareholders and potential investors with a benchmark for assessing future expected benefits from investing in the securities of a particular company. Of course, not all investors are guided by indicators of dividend yield and profitability, much depends on the structure of equity capital, but nevertheless, information about dividends is important for the market and, unlike profit, which can be “paper”, dividends give investors a signal about real state of affairs of the company.

Let us consider how the aforementioned companies in the oil sector of Russia implement their dividend policy in practice.

According to the results of 2013, OAO Gazprom paid 11.8% of net profit in the form of dividends, despite the fact that the company's dividend policy stipulates that a part of net profit in the amount of 10% is directed to the payment of dividends, the other part, determined by the charter, to reserve fund and a third part, not less than 40% and not more than 75% - for investment purposes. At the same time, in the same dividend policy, the line above states that dividends should be from 17.5% to 35% of net profit, provided that the reserve fund is fully formed. Whether the reserve fund has been formed in the amount corresponding to the company's charter is impossible to find out due to the secrecy of information about the size of the fund. The only thing that can be said with certainty is that the company's management adheres to a conservative approach to dividends, reserving a large amount of funds for investment and other strategic purposes, and this approach is unlikely to change in the near future, given the recently updated edition of the company's dividend policy . What is also interesting is the period prescribed for the payment of dividends - this is "the period established by the decision of the general meeting of shareholders, which cannot end later than the end of the year in which the specified decision was made." According to the law "On Joint Stock Companies", this period cannot exceed 60 days from the date of the decision to pay dividends, respectively, the company's management to a certain extent violates the rights of shareholders in the timely receipt of income on invested funds.

The oil company Rosneft paid out 15.2% of its net profit in 2013, which is in line with the company's declared dividend policy. There is a tendency to increase the role of dividend policy due to the fact that the document introduced a clause on the dividend payment period - it was reduced to 60 days (from the date of the decision to pay dividends), and it was also recorded that the payment of dividends on shares of each category is carried out simultaneously to all owners shares of this category, which contributes to the equal satisfaction of the requirements of not only majority shareholders, but also minority shareholders.

The principles of the company's dividend policy are complemented by the intention to strive to ensure annual growth of dividends based on the growth rate of net profit, financial position and existing investment projects. This condition is met in practice - over the past 5 years, the volume of dividends per share of the company has increased by 20% annually, and we can confidently speak of an aggressive approach to dividend policy.

According to the results of 2013, the oil company Lukoil paid out more than 17% of its net profit; in the past few years, the amount of dividend payments per share has grown by an average of 15%, which suggests an aggressive method of paying dividends. The company has set the following "dividend" goals: "recognition of the amount of dividends as one of the key indicators of the investment attractiveness of the company and increase the amount of dividends based on consistent growth in profits and / or the share of dividend payments in retained earnings" . The latter allows us to speak about the intention of the company's management to continue building a positive image in the eyes of existing and potential shareholders, which also indicates an increase in the level of corporate governance.

OJSC “Surgutneftegas” also does not have a prescribed dividend policy, information on payments is presented on the official website of the company in the “Dividends” section, as well as in the annual report. From 2002 to 2013, the value of the company's dividends showed changes from +337% to -34%. It can be assumed that the company adheres to the policy of payments on a residual basis (conservative type), distributing in the form of dividends the funds remaining after the implementation of investment projects. The policy is difficult to predict for investors and the market as a whole, which somewhat reduces the investment attractiveness of the company for shareholders interested in current income.

JSC Gazprom Neft has a policy approved by the Board of Directors, in accordance with which dividends are paid in cash within the period specified by the company's charter. The goal of the policy was declared to be "increasing the transparency of the company's activities and investment attractiveness, ensuring a positive dynamics in the amount of dividends" . Payouts per share have fluctuated significantly over the past five years, both up (+64% in 2011) and down (-33% in 2009), while the share of dividends in net profit is approximately 22% from 2007 to 2011. Thus, the company adheres to an aggressive approach to the dividend policy, setting the amount of dividends as a % of net profit, while at the same time trying to increase the specific amount of dividend per share. During the period of financial instability following the results of 2008, dividends were reduced by 33% compared to the previous period. Thus, during a period of liquidity decline, there is a decrease in the outflow of funds for payments to shareholders. On the one hand, this made it possible to keep the company's cash flow at the required level, but on the other hand, it scared off some investors who are actively reacting to incoming news in the conditions of the surrounding financial instability, taking into account the signal role of dividends.

OAO TATNEFT has an approved dividend policy, which states that its goal is to maintain dividend payments at a high level, while not specifying the specific amount of dividends to be paid to shareholders, which to a certain extent gives flexibility to management decisions, but at the same time makes it almost impossible for shareholders to predict payments for the next period. In 2012-2013 the amount of dividend payments from net profit amounted to 30% and 22%, respectively. The amount of dividend per share fluctuated significantly over the period 2006-2011, increasing by an average of 13% per year.

OAO Bashneft has an approved regulation on the dividend policy; in 2013, it directed more than 96% of its net profit for 2012 to dividends. Such distribution of funds, in our opinion, is connected with the need of the main shareholder, OJSC AFK Sistema, to increase the level of liquidity.

The income distribution policy of joint-stock companies reflects the real motives of the economic behavior of their owners and managers.

Lack of transparency and a small number of companies that regularly pay dividends do not allow the development of domestic empirical research in this direction.

A company that does not pay dividends reinvests funds in business development, information on the conditions for making investments is fully available to all market participants who fairly evaluate the company's shares in accordance with the level of risk and expected profitability of ongoing projects. If a company is able to invest in projects with a positive net present value, it will necessarily invest regardless of dividends. If dividends are paid and there is not enough free cash, then in a perfect capital market, the company is free to raise the missing funds without any additional costs. However, in the real world with non-zero transaction costs and tax rates, information asymmetry, and behavioral effects, a complex relationship arises between the company's value and its dividend policy. There are several theories that offer their explanations for this relationship.

In large companies, the entrepreneurial type of thinking is being lost both among managers and among the owners of the company. The latter, in fact, are moving into the category of investors who perceive their share in the company's capital as one of the assets in their portfolio. Empirical facts make it possible to make the payment of dividends dependent on the life cycle of the firm. In the early stages of its development, when investment opportunities are great, and the amount of free cash is limited, the company is not inclined to pay dividends. And at the stage of maturity, when the ratio of earned and contributed capital is high with a significant amount of profit, the owners try to reduce the agency costs of retaining free cash by distributing profits.

The lower the quality of corporate governance, the more likely it is to pay dividends, thereby compensating for weak governance and high agency costs. Well-managed firms will pay dividends if they are financially sound enough to support their policies. But if the firm pays dividends, it has high agency costs. It turns out that regular dividends are substitutes for high-quality corporate governance. In countries with stronger legal protection of shareholders, dividends are on average higher than private dividends, but Russian state-owned companies are a good example of the dependence of dividend policy on the quality of corporate governance and protection of shareholder rights. The regulatory influence of the state on companies is increasing due to serious violations of the rights of shareholders.

The problem of low incentives and high agency costs affected dividend payments in state-owned companies even during the boom years. The amount of net profit allocated for the payment of dividends was often set according to the residual principle. Due to the opacity of companies, it became possible for companies to withdraw the profitable part of their business from state control through dependent and subsidiaries. The positions of the sectoral ministries and the Federal Property Management Agency have not been coordinated both on the issues of dividend payments and on the issues of transferring them to the budget.

Forming a successful dividend policy without an in-depth study of the factors influencing it is possible only if the company adheres to favorable trends in this area that have been developing over a long period in a particular country.

Unfortunately, insufficient attention has been paid to the study of dividend policy in Russia so far. This is due to the relatively short period of activity of domestic joint-stock companies. However, in any case, the basis for the development by Russian companies of their own dividend policy is the accounting, control and, if possible, regulation of factors that contribute to the successful development and investment attractiveness of the enterprise.

The studies of many Russian economists draw attention to the importance of forming and optimizing the dividend policy in the process of investment and financial activities of Russian joint-stock companies.

A conservative dividend policy is optimal for Russian joint-stock companies and is recommended by 70% of industrial enterprises; moderate dividend policy should be followed by 29% of joint-stock companies, and only less than 1% can use an aggressive dividend policy.

The payment of dividends according to the residual principle is the optimal subtype of the dividend policy, which 56% of Russian joint-stock companies in industry can use in their practice; the payment of fixed dividends is less in demand and can be supported by 14% of joint-stock companies; the use of fixed dividend payments plus extra dividends in certain periods of time is possible in 29% of joint-stock companies. Unclaimed is the payment of constant dividends in relation to profit, which is available to less than 1% of joint-stock companies and the payment of ever-increasing amounts of dividends, which Russian joint-stock companies cannot yet afford.

The optimal value of dividend payments to net profit is the range of 0% -10%, which can be afforded by 56% of Russian joint-stock companies in the industry; 10%-20% of net profit for dividend payments should be distributed to 14% of joint-stock companies; 29% of joint-stock companies are recommended to pay dividends in the amount of 20%-50% of net profit. Finally, 50%-100% of net profit can be channeled by less than 1% of joint-stock companies in industry.

The optimal form of dividend payments for the vast majority (85%) of Russian joint-stock companies in the industry are cash payments, however, in some cases (15%), dividend payments in shares are not excluded.

The increase in the importance of the size of dividends paid is influenced by anti-crisis measures in the field of taxation in the securities market, in particular, such as the expansion of the use of a zero rate on dividends paid by Russian companies.

Of course, in a crisis situation, most companies limit the payment of dividends, but for Russian companies, due to the relatively small dividend payout ratio (7-20%) compared to the traditional 30--60% in Western markets, it remains possible to increase its investment attractiveness.

In Russia, not enough attention is paid to the distribution of profits. The growth trend of Russian industrial enterprises can be maintained only through the intensive attraction of financial resources.

Currently, most Russian companies do not raise funds by issuing shares. This is due to a number of reasons, the most significant of which is the threat of loss of control over the enterprise. Bank loans remain traditional sources of financing for enterprises. However, the potential for using borrowed capital in the form of bank loans or bonds has its limits, both legal and economic. The use of large amounts of borrowed funds by enterprises increases the risk of bankruptcy, which is reflected in the increase in the cost of attracted financial resources. In addition, companies are forced to assume the fixed costs associated with the use of borrowed capital. Russian banks do not yet have sufficient financial potential to meet the high need of enterprises for cash.

Does not contribute to raising capital through the issuance of shares and the state of the Russian financial market. The domestic stock market has one important characteristic - low liquidity. Regular transactions are carried out only with shares of a limited number of issuers, as a rule, enterprises in the extractive industries, communications and energy. The low liquidity of the shares of many issuers is often due to the high degree of concentration of ordinary shares among a limited number of shareholders.

As a result, an investor who wants to receive income from the sale of shares may face serious problems. Thus, many potential investors are forced to place funds in bank deposit accounts or purchase foreign currency.

In the future, managers and shareholders - owners of large blocks of shares in Russian companies - will be forced to give up the possibility of maintaining control over the enterprise and use the issue of ordinary shares to finance business needs. The issue of shares will not only minimize financial risk, but also increase the possibility of using borrowed capital.

Under such conditions, managers should pay more attention to the formation of dividend policy, otherwise corporations will inevitably face financing problems.

Current dividend payments reduce the level of uncertainty of investors regarding the feasibility and profitability of investing in this enterprise; thus they are satisfied with a lower rate of return on invested capital, which leads to an increase in the market value of equity capital. On the contrary, if dividends are not paid, uncertainty increases, and the acceptable rate of return for shareholders increases, which leads to a decrease in the market valuation of equity capital.

We can say that the second approach is more common. At the same time, the fact is also recognized that there is no single formalized algorithm in the development of a dividend policy - it is determined by many factors, including those that are difficult to formalize, for example, psychological ones. Therefore, each company must determine its dividend policy based primarily on its inherent features.

Dividend policy refers to the policy of distributing profits to dividends and the capitalized part.

The further distribution of a part of the profit aimed at the payment of dividends is a mechanism for the formation of personal income of shareholders in accordance with the size of their participation in the capital of the enterprise. Further distribution of the capitalized part of the profit, depending on the strategic goals of the enterprise, can be used to finance both current operations and investments. The purpose of the dividend policy is to establish the optimal, i.e. such a ratio between dividends (as current consumption of profits) and the capitalized part (as invested for the purpose of obtaining profit in the future), which could:

1) maximize the market value of the enterprise;

2) ensure its strategic development.

Indeed, the investment opportunities of the enterprise depend on the proportions of the distribution of net profit for dividends and the capitalized part:

1) the more dividends, the less investment opportunities of the enterprise;

2) the smaller the dividends, the greater the investment opportunities of the enterprise.

Wherein:

1) an increase in dividends paid in the current period reduces not only the investment opportunities of the enterprise, but also future profits and, accordingly, future dividends;

2) a decrease in dividends paid in the current period increases not only the investment opportunities of the enterprise, but also future profits and, accordingly, future dividends (of course, provided that investment projects are not only implemented, but also turn out to be profitable).

Kaznacheeva Irina Evgenievna

Trushnikova Alena Dmitrievna

Faculty of Finance and Economics Financial University under the Government of the Russian Federation Moscow, Russia

Annotation: The article discusses the concept of dividend policy, the importance of its development for the company. A comparison is made between Russian and international experience in implementing the dividend policy on the example of the United States. The S&P 500 Dividend Aristocrats rating and the companies included in it are analyzed. The main trends and problems in the issues of the modern dividend policy of Russian companies are highlighted. An attempt was made to identify the interdependence of the dividend policy and the successful operation of the joint-stock company, the stability of the company's financial condition and its investment attractiveness.

Keywords: dividend policy, shareholders, financial strategy, investment attractiveness

The role of dividend policy in the company

Kaznacheeva Irina

Trushnikova Alena

Student of economics and finance faculty Financial University under the Government of the Russian Federation Moscow, Russia

Abstract: The article discusses the concept of dividend policy, the importance of its development for the company. A comparison of the Russian and international experience (the USA) the implementation of dividend policy. Analyzed rating S&P 500 Dividend Aristocrats and the companies included in its composition. The basic trends and challenges in matters of contemporary Russian company’s dividend policy were analyzed. An attempt was made to identify the relationship of dividend policy and the success of the joint-stock company, the stability of the financial condition of the company and its investment attractiveness.

Keywords: dividend policy, shareholders, financial strategy, investment attractiveness

Scientific Supervisor: Chernyshova Marina Vitalievna, PhD in Economics, Associate Professor of the Department of Financial Markets and Banks

Financial University under the Government of the Russian Federation

An organization's dividend policy is the process of determining the amount, payment procedure, and timing of distribution of a company's dividends among its owners. The amount of dividends affects the investment attractiveness of the company, and indicates the successful operation of the organization. In addition, the dividend policy is part of the financial strategy of any company. The main objectives of the dividend policy include:

1) stable dividend payments to all shareholders in order to increase the investment attractiveness of the company;

2) ensuring the maximization of the total state of shareholders and sufficient financing of the company's activities;

3) optimization of the proportions between the share of profit that will be spent on the payment of dividends and which will be reinvested in order to further expand and develop the enterprise.

The issue of dividend policy optimization is extremely relevant in the modern economy, because there is no universal algorithm for developing such a policy. Thus, each company independently develops a dividend policy, guided by the situation in the industry and individual characteristics of the company. Issues of payment of dividends are regulated by civil legislation and federal laws. When developing a dividend policy, companies should be guided by the Code of Corporate Conduct. The following stages of the formation of a dividend policy can be distinguished:

1) choice of the type of dividend policy

2) choice of the form and conditions for the payment of dividends

3) evaluation of the effectiveness of the selected type of dividend policy

Let's compare Russian and international experience in the implementation of the dividend policy. As part of the implementation of best corporate governance practices in the United States, there is a special “dividend aristocrats” index, which includes companies that have consistently increased shareholder payouts for 25 years. There is a popular world stock index Standards & Poor's 500 (S&P 500), which is a list of the 500 largest American companies. However, in terms of dividend payments, not all companies out of 500 can be classified as "dividend aristocrats", because not every successful company boasts stable dividend payments.

For example, in the US, there is a narrower list of S&P 500 Dividend Aristocrats, which includes only those companies from the S&P 500 that have increased the size of dividends every year for 25 years. It should be noted that only companies that have serious long-term competitive advantages and a shareholder-friendly dividend policy have the opportunity to pay ever-larger dividends every year for 25 years.

In addition, if at least once the company has not made an increase in dividend payments, it leaves the number of "dividend shareholders". Thus, as of 2010, 43 companies of the S&P 500 index increased dividends annually, by the end of 2016 there were 50 of them. Table 1 shows the top 10 companies in this index.

Table 1. Top 10 US companies according to S&P 500 Dividend Aristocrats in 2016

It is important to note that the companies included in this index are highly diversified by sectors of the economy. Thus, Figure 1 shows the shares of companies classified as "dividend aristocrats" by industry.

The following characteristics of the modern dividend policy of Russian companies can be distinguished:

1) a gradual increase in the amount of dividends paid. For large companies preparing for an IPO, and for companies with strategic foreign investors, a dividend policy is a necessary condition for successful development.

2) Russian joint-stock companies tend to pay dividends once a year after the annual meeting of shareholders. However, there are companies that switch to paying dividends every six months, for example, PAO NOVATEK and PAO NLMK.

3) in general, the dividend yield of securities of Russian companies is very low, which is due to the fact that the Russian stock market can be classified as a developing type. However, shares of a number of commodity companies demonstrate high profitability. The undisputed leader is the oil and gas industry, which accounts for about 75% of all dividend payments in the Russian Federation. Thus, the dividend yield of shares of oil and gas companies based on the results of 2015 is presented in Table 2.

Table 2. Dividend yield of shares of the largest Russian companies in the oil industry

In general, at the moment there are not many companies on the Russian stock market that pay significant dividends to their shareholders. However, higher payments from state-owned companies can be expected in 2016, which is due to the fact that on April 19, 2016, Russian Prime Minister Dmitry Medvedev signed Decree N 705-r, according to which state-owned companies in 2016 will direct 50% of net profit to dividends.

Improving the dividend policy for joint-stock companies can be done using various methods. In order to attract investors, companies that issue non-standard securities, such as preferred shares with a fixed minimum percentage, the company's management may decide that it is necessary to increase the interest paid on this type of securities. The modernization of the dividend policy, the introduction of new instruments that stimulate the attraction of investments in innovations and the long-term financial development of the company, in general, increase the investment attractiveness of the company for shareholders.

Thus, we can say that the dividend policy is an ambiguous phenomenon, but it is on it that the successful operation of a joint-stock company and the stability of the company's financial condition largely depend. Fixing in the internal documents of a joint stock company the procedure for calculating, approving and paying dividends serves the purpose of informing shareholders and interested parties about the principles for exercising property rights on ordinary and preferred shares. At its core, the dividend policy is the company's obligations to shareholders to pay them cash, that is, dividends, which represent a certain share of the company's net profit.

Violation of the conditions for paying dividends or reducing the amount of dividend payments leads to the loss of access to the capital market. The role of the dividend policy in the company's activities necessitates its careful development in order to establish a balance between the current consumption of profits and its future growth as a result of investment.

In emerging capital markets, there is an increase in the amount of funds that are directed to the payment of dividends to shareholders. Dividend payments are one of the most important tools for distributing capital to owners, and dividend policy is one of the most important elements of the financial policy of large public companies. Also, the dividend policy is one of the most controversial issues in the company's activities. Financiers cannot agree on whether the company should pay dividends, what part of the profit should be directed to the payment of dividends, and also what will be the reaction of investors to dividend announcements.

Bibliography:

1 Bob Ciura Duke Energy: Dividend Achiever and a Secure 4.5% Yield // 2016, URL: http://www.suredividend.com/

2. Bocharova I.Yu. Dividend policy in the system of corporate governance of companies // Finance and Credit 2011. No. 47.

10. Order of the Government of the Russian Federation of April 18, 2016 N 705-r, URL: http://www.consultant.ru/law/hotdocs/46216.html

2016 Kaznacheeva I.E., Trushnikova A.D.

Dividend Policy - the company's policy on the distribution of dividends among shareholders.

Types of dividend policy

With a conservative dividend policy the payment of dividends is not considered by the management of the company as a significant factor influencing the results of the company. In turn, this approach distinguishes between two types of dividend policy.

1. Payment of dividends on a residual basis. In this case, the priority is the financing of the company's investment projects, and dividends are paid from the rest of the net profit. As an advantage of this type of dividend policy, the achievement of high growth rates and business development is considered. The disadvantages include the unpredictability of the fact of dividend payments and the amount of dividend payments. This type of dividend policy is mainly used by growing firms.

2. With politics stable dividend payout dividend is a fixed amount, sometimes adjusted for inflation. Its use is relevant for preferred shares. The amount is determined by establishing an annual fixed dividend in the amount of one share or in the amount of a fixed percentage of the par value of the shares.

As a "strong" side of this policy, they consider the constant investment interest in the company. Its "weak" side includes a slight connection with the company's financial results. That is, in difficult periods for the company, the need to pay dividends can nullify its investment activity. In this case, in order to reduce the risk of financial instability of the company, low dividends are paid to shareholders.

With a moderate dividend policy the company's management considers the payment of dividends as a fairly significant factor influencing the results of the company. With this approach, a policy of a minimum stable dividend with a premium in certain periods is in demand, when shareholders receive a small but stable dividend, which can increase in certain periods.

On the one hand, a stable payment of dividends arouses investment interest in the company, but on the other hand, a small amount of dividend payments makes the company of little interest to its potential investors.

With an aggressive dividend policy the instrument of dividend policy itself is considered as one of the main factors influencing the value of the company. Within this approach, two types of dividend policy are distinguished.

1. The policy of a stable level of dividends is characterized by that the company establishes a constant percentage of net profit paid out in dividends. The "cons" of this policy include a strong dependence of the amount of payments on fluctuations in the size of the company's profit. The advantage is the simplicity and transparency of the process of determining the amount of the dividend, which makes it possible to trace the dependence of future shareholders' income on the financial results obtained.

2. In a policy of constant growth in the size of dividends may contain a condition to increase dividend payments up to a certain limit in the amount of a percentage of the previous amount of dividends. This type of policy is applied in stable developing companies.

It should be noted that, according to the recommendations of the Russian Corporate Governance Code, each company is recommended to approve a dividend policy, which will guide the board of directors when developing a proposal to the general meeting of shareholders regarding dividend payments. This policy should be articulated in an appropriate provision.

The model regulation on the dividend policy (hereinafter referred to as the Regulation) of a Russian company usually consists of the following parts:

1. General Provisions.

This section usually indicates the main principles by which the company is guided in the formation and implementation of the dividend policy.

After analyzing the positions of the largest companies, we can conclude that the main principles are:

1. balance of interests of the company and its shareholders in determining the amount of dividends, as well as the balance of short-term (receiving income) and long-term (development and growth of the company's capitalization) interests of shareholders;
2. maintaining the required level of financial condition, ensuring the prospects for the development of society;
3. increasing the investment attractiveness of the company and its capitalization;
4. observance of the rights of shareholders provided for by the current legislation of the Russian Federation, the charter of the company and its internal documents;
5. transparency of mechanisms for determining the amount of dividends and their payment;
6. creation of equal conditions in receiving dividends for shareholders - owners of shares of a company of one category (type).

2. Declaration of dividends

This section of most companies is similar, this is due to the fact that it almost completely duplicates the provisions of the law:

• on the frequency of decision-making on the payment of dividends.

The company has the right to make a decision on the distribution of its net profit among the participants of the company quarterly, once every six months or once a year. It should be remembered that the decision to pay quarterly dividends should be made with great care. The payment of quarterly dividends may lead to a situation where the company, having received a net profit for the first quarter, sufficient to pay "interim" dividends, made payments, but at the end of the year there is no net profit. According to the Letter of the Federal Tax Service of Russia dated March 19, 2009 No. ШС-22-3/210, such payments are not recognized as dividends. In this regard, almost all experts are unanimous in their opinion that only companies with a stable financial position can afford to pay dividends with a frequency greater than once a year;

• on the terms of payment and restrictions on the payment of dividends.

It must be remembered that the company is not entitled to make a decision (announce) on the payment of dividends on shares:

• until full payment of the entire authorized capital of the company;
• before the redemption of all shares that must be redeemed in accordance with applicable law;
• if, on the day such a decision is made, the company meets the signs of insolvency (bankruptcy) in accordance with the legislation of the Russian Federation on insolvency (bankruptcy) or if the indicated signs appear in the company as a result of the payment of dividends;
• if on the day such a decision is made, the value of the company's net assets is less than its authorized capital, reserve fund and the excess of the liquidation value of the placed preferred shares over the nominal value determined by the charter, or becomes less than their amount as a result of such a decision;

The company is not entitled to make a decision (announce) on the payment of dividends on ordinary shares and preference shares, the amount of dividends for which is not determined, unless a decision is made to pay the full amount of dividends on all types of preference shares, the amount of dividends on which is determined by the charter of the company.

The company is not entitled to make a decision (announce) on the payment of dividends on preferred shares of a certain type, for which the amount of the dividend is determined by the charter of the company, unless a decision has been made on the full payment of dividends (including the full payment of all accumulated dividends on cumulative preferred shares) on all types of preferred shares that give precedence in the order in which dividends are received over preferred shares of this type.

The Company is not entitled to pay declared dividends on shares:

• if on the day of payment the company meets the signs of insolvency (bankruptcy) in accordance with the legislation of the Russian Federation on insolvency (bankruptcy) or if the indicated signs appear in the company as a result of the payment of dividends;
• if on the date of payment the value of the net assets of the company is less than the amount of its authorized capital, reserve fund and the excess of the liquidation value of the placed preferred shares over the nominal value determined by the charter of the company or becomes less than the specified amount as a result of the payment of dividends;
• in other cases stipulated by federal laws.

Apparently, the company cannot specify in the Regulations additional restrictions on the payment of dividends that are not provided for by the current legislation.

3. Sources of funds allocated for the payment of dividends and the amount of dividends

In accordance with the requirements of the current legislation, dividends are paid out of the company's after-tax profit, calculated in accordance with the current accounting and financial reporting rules, and distributed among shareholders in proportion to the number of shares of the corresponding category (type) they hold. Dividends on preferred shares of certain types may also be paid from special funds of the company previously formed for these purposes. When determining the amount of net profit allocated for the payment of dividends, the following is taken into account:

• the need to form the company's funds (reserve and others, the decision on the formation of which has been made);
• forecast indicators of the company's net profit for the next financial year.

Many companies in the Regulation prescribe the minimum amount of profit, which is directed to the payment of dividends.

Below are excerpts from the provisions of some joint-stock companies regarding the size of the share of profit directed by the company to pay dividends to shareholders.

“The amount of dividend payments is determined based on the financial results of the year, but, as a rule, it is at least 10% of net profit” (OJSC RNC Rosneft).

“The Company allocates at least 5% (five percent) of the consolidated net profit of the JSC RusHydro Group (guaranteed level of dividend payments) for the payment of dividends for the financial year.

The Company may allocate 0-100% (from zero to one hundred percent) of the free (undistributed) balance of the Company's net profit for the payment of additional (extra) dividends, subject to the obligatory observance of the following two conditions simultaneously:

• checking that the amount of additional dividends does not exceed the free (undistributed) balance of the Company's net profit;
• checking that the amount of additional dividends does not exceed the free (undistributed) balance of the consolidated net profit of the Group” (JSC RusHydro).

Some companies, when determining the amount of dividends paid, use several indicators and focus on the larger one.

“When developing a recommendation to the General Meeting of Shareholders of the Company on the issue of determining the amount of dividends, the Board of Directors is guided by the fact that the amount of annual dividends on the shares of the Company should not be less than the larger of the following indicators:

• 15% of the consolidated financial result of the Gazprom Neft Group, determined in accordance with International Financial Reporting Standards (IFRS),
• 25% of the Company's net profit determined in accordance with Russian Accounting Standards (RAS)" (JSC "Gazprom Neft").

“Not less than 75% of the Company's free cash flow for each previous financial year under US GAAP, or an amount of 40 billion rubles, if this amount turns out to be more” (MTS OJSC).

On average, the size of the share of profit allocated to the payment of dividends varies between 5% and 25%.

4. Persons entitled to receive dividends

The date on which, in accordance with the decision on the payment (declaration) of dividends, the persons entitled to receive them are determined, cannot be set earlier than 10 days from the date of the decision on the payment (declaration) of dividends and later than 20 days from the date of the adoption of such a decision.

At the same time, the decision regarding the establishment of the date on which the persons entitled to receive dividends are determined is taken only at the proposal of the board of directors (supervisory board) of the company. Previously, dividends were paid to the person indicated in the list of shareholders on the date of the decision to pay dividends, despite the fact that such a person by the time the payment was made could cease to be a shareholder of the company.

The new rules appear to be aimed at reducing the cases where the person who got rid of them is entitled to receive dividends on shares, while the new shareholder is not entitled to receive payments on these securities.

5. Procedure for the payment of declared dividends

The term for payment of dividends to a nominal holder and a trustee who is a professional participant in the securities market, who are registered in the register of shareholders, should not exceed 10 business days, and to other persons registered in the register of shareholders - 25 business days from the date on which the persons entitled to receiving dividends.

Dividends are paid in cash, and in cases provided for by the charter of the company, in other property.

Realities and trends in the dividend policy formed and pursued by Russian companies

Several trends can be seen in the current dividend policy of Russian companies.

First, the amount of dividends paid increases.

At the end of 2013, most of the largest private and state-owned companies in Russia paid fairly high dividends compared to previous periods. Dividend payouts in many companies have at least doubled. We can talk about another trend in the formation of the dividend policy in Russia, namely: the borrowing of certain features of the American system. The experience of companies that, even in difficult economic situations, increase the size of their dividends every year for many years, is becoming in demand. This practice, in particular, is followed by Coca-Cola.

Previously, it was considered the norm to pay shareholders an income of about 1.5% of the value of shares. However, in 2013, for example, the owners of ordinary shares of Lukoil were to receive 4% each, the shareholders of OAO Gazprom - about 5%.

What is the main reason for such changes? Everything is explained quite simply. As for private companies, the payment of dividends is considered by the main shareholders as a convenient way to withdraw funds. And in companies with state participation, an increase in the size of dividend payments is caused by the need to finance the federal budget deficit.

These changes are also partly due to innovations in legislation. In particular, it became impossible to delay the payment of dividends due to the establishment of clear deadlines for their payment.

According to the estimates of the R.O.S.T. The main contribution to the growth was provided by the oil and gas companies OAO ANK Bashneft, OAO NK Rosneft, OAO Gazprom. At the same time, the sectoral structure changed insignificantly: almost all sectors showed growth, with the exception of the chemical industry (for example, Uralkali OJSC cut its dividends by more than half). The main contribution is still made by the oil and gas industry, which accounts for almost 60% of all dividend payments.

Traditionally, high dividends are paid by companies in the oil and gas industry, metallurgy enterprises, and banks.

A number of companies in the consumer sector also paid stable dividends. For example, Magnit, while developing its business, continues to pay dividends that provide a yield of 1-2%. At the same time, M.Video, which slowed down business growth, also paid high dividends.

Analysts predicted the continuation of the trend of increasing the amount of dividends paid in the next few years. However, the changes that began in the Russian economy in 2014 forced experts to revise their forecasts and make adjustments.

The largest Russian companies in 2015 may cut dividends by 40% due to the recession and limited access to international capital markets. According to forecasts, the priority areas for Russian companies this year will be the optimization of capital investments and the provision of liquidity for uninterrupted operations. Even large Russian companies that enjoy state support are not protected from default.

In the modern dividend policy of Russian companies, one can also note such a phenomenon as a low dividend yield on securities (i.e., the ratio of the sum of all dividends received in the previous year to the share price), which is typical for emerging markets. Another trend is the use of dividend payments for the redistribution of funds in favor of the majority shareholder of the company.

In general, more and more companies are adopting internal documents that provide for the procedure for the formation and goals of the dividend policy. In addition, the company's management, understanding the importance of a well-designed dividend policy for the company's reputation, tries to be guided by the principles set forth in the Corporate Governance Code when developing it.

However, the process of developing the mechanism for paying dividends in Russia is still at the very beginning of its formation. And it will take a lot of time and work to reach the level of Western companies.

The importance of the existence of a clearly defined dividend policy for the reputation of the company in the eyes of shareholders and potential investors was the first in Russia to start thinking about the largest enterprises. After all, they are the main conductors of the Western experience of corporate governance in the domestic business environment. Realizing that a competent dividend policy and maximum awareness of shareholders are the most important factors of a company's investment attractiveness and a guarantee of its future development, Russian corporations began to supplement their websites with the Information for Shareholders section.

But a declaration of good intentions does not guarantee that a halo of friendliness towards shareholders will shine over the company. As an example, let's take the dividend policy of one of the "blue chips" - the company "Surgutneftegaz". It "famous" for high-profile disputes and even litigation with its minority shareholders on the issue of determining the basis for paying dividends on preferred shares. The fact is that the Law "On JSC" states that a company has the right to pay dividends from net profit, but it does not provide explanations for the concept of "net profit". Thus, the possibility for various kinds of manipulations opens up. Thus, the charter of Surgutneftegaz states that the company's board of directors has the right to determine, at its discretion, the amount of net profit for calculating dividends on preferred shares. And according to this discretion, net profit is not profit after tax, as is customary all over the world, but profit after tax minus the cost of capital investments and contributions to social and reserve funds. Therefore, dividends on preferred shares in the amount of 10% of net profit actually turn out to be artificially low due to a decrease in the basis for their calculation. Apparently, the company considered it irrational to give 10% of profits for dividend payments to owners of preferred shares and solved this problem in a not very beautiful way. LUKOIL acted in a more civilized manner: it converted its preferred shares into ordinary ones.

Table 1. Dividends of some Russian companies in 2002/2001 Dividend policy of Russian companies and its impact on the market value of shares: article. / Belenkaya Olga, Novikova Elena [Electronic resource] / Access mode: http://old.rcb.ru/archive/articles.asp?id=3388, free.

It can be seen from the table that in 2002/2001, almost all the companies examined had meager returns and the amount of dividends on shares. Until recently, Russian companies were characterized by the absence of a dividend policy as such (meager amounts of dividends, the absence of any target criteria). Issues related to dividend policy traditionally represent a conflict of interest between major and minority shareholders. For large shareholders, shares are needed primarily to exercise control over the company, while dividend income is not so significant. Minority shareholders are interested in the latter. The controlling shareholder, as a rule, seeks to reinvest profits in his own business and keep dividend payments to a minimum. In Russia, the situation is aggravated, on the one hand, by the objective need of business for investments for development and, on the other hand, by the history of privatization - when the shares of privatized enterprises were received by minority shareholders almost free of charge.

Now the situation is changing, especially in connection with the difficulties of domestic borrowing. In the foreign market, in order to get a loan, you need to show "good" reporting. Small dividend payments reduce the investment attractiveness of the company. Therefore, Russian companies have to revise their dividend policies.