Buyback of Shares- Impact on Dividend Practices of Different Sectors

Buy-back of shares is a critical decision on the part of the company as it affects the availability of capital and in turn it may affect the profitability of the company particularly in the short term period. Buy-back of shares of the company reduces the capital of the company to be contributed by shareholders. Present Research paper has been written to analysis the effect of buyback of shares on dividend practices, measured in terms of dividend amount. The Research paper has been contains the analysis of effect of buyback of shares on dividend practices, measured in terms of dividend amount of selected different sector companies. Dividend is a distribution of portion of a company’s earnings, decided by the board of directors, for its shareholders. Dividend amount is total amount of company which has been distributing as cash, stock and shares. It also analysis the post and pre performance of selected Nine sectors after buy back of shares.