[Verse 1]
The boardroom buzzes with a choice to make
Cash flows in but which direction take
Dividends to shareholders or keep retained
For future growth when markets have us strained
The payout ratio tells the tale
Regular quarterly checks or reinvestment trail
[Chorus]
Pay it out or keep it in
Stock or cash the game begins
Split the shares or buy them back
Dividend policy on track
Residual theory guides the way
Signal theory has its say
Pay it out or keep it in
Let the distribution dance begin
[Verse 2]
Stock dividends dilute but keep the cash
Twenty percent increase without a dash
Of money leaving company coffers tight
While splits make shares more affordable bite
Two-for-one or three-for-two the math
Psychological pricing clears the path
[Chorus]
Pay it out or keep it in
Stock or cash the game begins
Split the shares or buy them back
Dividend policy on track
Residual theory guides the way
Signal theory has its say
Pay it out or keep it in
Let the distribution dance begin
[Bridge]
Repurchase programs shrink the float
EPS rises as we note
Tax implications vary wide
Clientele effects collide
Stable policy smooths the ride
While special dividends surprise
[Verse 3]
Bird in hand beats two in bush they say
But Miller Modigliani sway
Irrelevance when markets work just right
No taxes friction makes the theory tight
Yet reality shows information costs
And agency problems when control gets lost
[Chorus]
Pay it out or keep it in
Stock or cash the game begins
Split the shares or buy them back
Dividend policy on track
Residual theory guides the way
Signal theory has its say
Pay it out or keep it in
Let the distribution dance begin
[Outro]
From ex-dividend dates to record days
The mechanics matter in so many ways
Balance sheets and cash flow statements show
How distribution choices help firms grow