Related Terms: Accomodating Policy 4.4 The traditional view of dividend policy, implicit in our earlier discussion, is to focus on the effects on share price. dividend increases send good news about cash flow and earnings. This policy governs Canada Life's actions regarding distribution of dividends to policyholders. Yearly event linked to a policy. 4) use the dividends to purchase paid-up whole life insurance to mature at the same time as the original policy, B) It will artificially depress the share value of a company as the growth in dividends will be lower when the absolute amount of dividends is higher. The view that issuing debt is generally valuable but that the firm's Thus, un-has an impact on marginal investments der the new view, dividend taxation is ir-financed with equity.' This ratio is reported in the daily Related to "Traditional view (of dividend policy)" Trading and Investments Terms . ADVFN's comprehensive investing glossary.