Research On Dividend Distribution Of China Northern Rare Earth Based On Financial Strategy Matrix

Rare earth is a scarce strategic resource in China.Under the background of China’s major strategic decisions of "carbon peaking" and "carbon neutralization",the new energy industry is booming,and the market demand for rare earth resources is also increasing,reappearing in front of the public’s vision again.Northern rare earth is a leading enterprise in China’s rare earth industry.In recent years,its dividend policy has attracted continuous attention.Dividend policy is an important branch of enterprise financial strategy.It is very important for the healthy development of enterprises in the future.At the same time,it also directly determines the vital interests of investors.A reasonable dividend policy can give investors reasonable returns while ensuring the long-term development of the enterprise.At the same time,it is also conducive to shaping a good image of the enterprise.Based on this background,this thesis selects northern rare earth,a leading enterprise in the rare earth industry,as the research object.Firstly,by comparing with the same type of rare earth enterprises in the same industry,this thesis obtains the characteristics of northern rare earth dividend distribution from the two perspectives of cash dividend distribution level and dividend payment rate: dividend distribution prefers cash dividend;The dividend distribution is continuous and the dividend payment rate is relatively stable;The distribution level of cash dividends fluctuates greatly.Based on the calculation of EVA and sustainable growth,the capital surplus and shortage and value creation of northern rare earth are obtained.The financial strategy matrix of northern rare earth is constructed through the two dimensions of capital surplus and shortage and value increase and decrease,so as to clarify the distribution of financial strategy matrix of northern rare earth in each year.By comparing the dividend policy that should be implemented in each year in the financial strategy matrix of North rare earth with its actual dividend distribution,in order to analyze the rationality of its dividend distribution policy,it is found that the dividend distribution policy of North rare earth has the following problems: the actual dividend policy does not match the state of surplus and shortage of funds;The dividend policy does not match the state of value creation;The form of dividend payment is single,which does not match the company’s business strategy;The dividend payment rate is negatively correlated with the sustainable growth rate.Finally,according to the above problems,this thesis puts forward relevant suggestions for Northern rare earth: Taking the financial strategy matrix as an important reference for dividend policy-making;Adopt a variety of dividend payment methods to alleviate the capital pressure;Maintain a stable level of dividend distribution and create a good image;At the same time,from the perspective of regulatory authorities,improve the rules and regulations on dividend policy.This thesis selects the financial strategy matrix model in the analysis method of dividend policy selection to analyze the dividend policy of northern rare earth over the years,help northern rare earth understand its problems in dividend distribution,and provide theoretical guidance for optimizing its dividend policy.At the same time,this thesis also helps to verify the rationality and superiority of the application of financial strategy matrix in dividend distribution research,Provide empirical basis for China’s listed companies to formulate and optimize dividend policy.