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Is it compulsory to pay dividends on common equity?

Updated: 8/17/2019
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14y ago

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No it is not. Dividends are a means of sharing the profit of a company with the share holders of that company but it is not compulsory. Companies usually declare dividends when they have a good financial year and make solid profits. If the year went bad, the company may opt not to declare any dividend that year.

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14y ago
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Q: Is it compulsory to pay dividends on common equity?
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