What are the principal considerations of a board of directors in making decisions involving dividend declarations? Discuss

Question:

What are the principal considerations of a board of directors in making decisions involving dividend declarations? Discuss briefly.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...