10 Common questions about dividends
These are the top 10 questions commonly asked about dividends. 1.Why do companies pay dividends? Companies decide to pay dividends to investors out of their excess earnings as a way to reward them. Companies need to be making money to be able to pay dividends. So generally speaking, firms that can pay dividends are in a financial stable position. 2.Are dividends compulsory for companies? No, dividend payouts are not mandatory for companies. Some growth companies may decide to not pay …