Shriro Holdings (ASX:SHM) said it is adopting a dividend policy targeting the distribution of about 20% to 30% of net profit after tax each financial year, subject to the availability of franking credits and at the discretion of the board, according to a Monday Australian bourse filing.

The company said the board will consider a range of factors when determining whether to declare and pay a dividend, including financial results and outlook, cash flow requirements, capital management strategy, growth opportunities, and overall financial position.

The policy is designed to balance returns to shareholders with the need to retain sufficient capital to support ongoing operations and strategic objectives, with the board retaining discretion to vary the payout ratio to reflect changing circumstances, the filing added.

The company's shares rose 1% in recent Monday trade.