Having turned to profitability, the following listed businesses decided on distributions to shareholders:

1. One plc pays all profits available for distribution to shareholders in the form of a cash dividend each year.
2. Two plc has yet to pay any cash dividends to shareholders and has no plans to make dividend payments in the foreseeable future.
3. Three plc buys back shares from shareholders as an alternative to a dividend payment.

Four plc offers shareholders the choice of either a small but stable cash dividend or a scrip dividend each year.

Discuss the advantages and disadvantages of each of the above polices.