Sample Business Plan Paper on Dividend Reduction

Nicholas and Associate Ltd

3456 Downhome Street

Boston, ID 98760




October 7, 2015


Ms. Angie Nicholas

Maxgain Solutions Ltd.

3455 Livingstone Lane

Michigan, ID 45671


Dear Ms. Angie:

SUBJECT: Dividend Reduction

Dividend payments to our shareholders have always been a priority at Nicholas and Associates. Over the years, our dividend payment packages have been the highest in the industry compared to other firms that offer very low or no dividends at all. We are happy to be ranked the best company in taking care of the shareholders interest in terms of dividend payment, and your support is highly appreciated.

The decision to make hefty dividend payments to the shareholders is a tricky one for the management as in the last few years profit for our firm and the whole industry has been on downward trend. Profits for the last three years have declined by thirty percent, and this is attributed to the increase in government taxation, anincrease in thecost of labor as well a arise in the inflation rates. As a result, the cost of the firms has tremendously increased leaving little amount to cater for other operational expenses, business development as well as maintaining the high dividend payment culture. During our last board meeting, it was agreed that a high percent of the money that remains after paying all the admiration expense will go to financing the opening of anew branch office in London. We, therefore, regret to inform you that our dividend payment this year will reduce from the current $4 per share to $2 per share to retain funds for use in the project.

Nicholas and Associate continue to pay the highest dividends in the market as the shareholder’s interest comes first in the firm. We are working hand to find alternative financing strategies for the project to retain and improve our dividend payment.






Nicholas Michaels

Managing Director.