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Dividends

Overview

The Dividends module models how a company forecasts and tracks dividend payments to shareholders over the forecast period. Dividend payments are recorded in the Cash Flow Statement under Cash Flow from Financing Activities.

While the module does not impact DCF or LBO structures directly, it appears in M&A models through both the Dividends schedule and the Cash Flow Statement.

Model Flow

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Adding a module

To add Dividends in a model, select one of the following nodes in the Blueprint window:

  • Schedule → Dividends
  • Cash Flow Statement → Cash Flow from Financing Activities → Dividends Paid

Editable Properties

Forecasting Basis

Determines how dividend assumptions are applied.

Options:

  • Dividend (Default)
    Apply assumptions to the total dividend amount.
    Best suited for private companies where dividends are determined based on profitability.

  • Dividend per Share (DPS)
    Total dividend is calculated by multiplying DPS by the number of shares.
    Best suited for public companies or where dividend policy is defined on a per-share basis.

[NTD: Insert screenshot comparing both methods]

Forecasting Method

The method used to project dividends depends on the selected Forecasting Basis.

If Forecasting Basis = Dividend:
- Default method: Ratio (of Net Income)

If Forecasting Basis = Dividend per Share:
- Default method: Ratio (of EPS)

Available Methods:

Cash Dividend

Name

The display name flows through the following areas: - Standalone → Dividend Schedule
- Cash Flow Statement
- M&A → Dividend Schedule and Cash Flow Statement

See Display Name for more details.

Stock Dividend

When enabled, the model assumes the company distributes stock instead of cash.

Inclusion

Set to True to activate stock dividends.

Affects the following sections: - Standalone → Dividend Schedule
- Cash Flow Statement
- M&A → Dividend Schedule and Cash Flow Statement

See Inclusion for more details.

Forecasting Method

Default: Hardcoded Input

Available Methods:

Additional Materials

See Dividends 101 page for more details.