Importance An analysis of the dividend policy is an actual and necessary line of research into any corporate development strategy of any company that plans its long-term presence in the market with some competitive advantages. Objectives The purpose of this paper is to test basic assertions of the life cycle theory in relation to the dividend policy in the Russian market over the 2004-2012 period. To meet the objective, the following tasks were formulated: to systematize theoretical and empirical works, which investigate the effect of the company's life cycle stages on the dividend policy; to analyze dividend policies of Russian companies in the context of their life cycle; to reveal the factors influencing the dividend policy of companies. Methods The methodological basis of the research consists of the methods of statistical and comparative analysis. Results The analysis of dividend policies showed that most Russian companies had been paying dividends up to 2007. The crisis affected dividend policies. The number of dividend payers decreased dramatically. The research showed that the main factor influencing dividend policies of companies was companies' life cycle stages and companies' ability to generate positive cash flow. Conclusions and Relevance The analysis of dependence of dividend policies on the company's life cycle stage showed that dividends were paid by more profitable and mature companies. As an indicator reflecting the stage of the life cycle, I use a percentage of retained earnings in equity (total assets) of the company. As the company becomes more mature, this indicator increases and the company is more likely to pay dividends. The hypothesis that dividend nonpayers are companies with high investment opportunities was not confirmed in relation to the Russian companies. The conclusions obtained in this research can be used by investors to form an investment portfolio.
Keywords: dividend, dividend policy, life cycle theory, payer, non-payer
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