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.
Yes, that is common.
no it is not compulsory to pay tax.
Most companies pay out dividends quarterly. In order to earn a dividend, you must own stock in a company on one date, and they pay dividends on another date.
No, stock does not always pay dividends at all much less monthly.
Why do companies not pay dividends
Most corporatiions that pay dividends, pay them 4 times a year.
Stocks that pay dividends are a stream of income for common stock holders. Dividends are paid out either quarterly or yearly. The level of dividend is determined by the company as an incentive to purchase stock.
yes
There are several types of investments that pay cash dividends. Some of these include: High Yield Investments, Stock Dividends, as well as Dividend ETF's.
Cost of equity > Cost of debt Reason: When u issue debt, for example in the form of bonds, u have to pay bondholders interest. This interest is tax deductible. On the other hand, when u issue equity, i.e. stocks, u pay dividends. This dividend is taxed as corporate income. Because of the ability of debt to escape taxation vis-a-vis equity, cost of debt is lower than cost of equity. In fact, this is called a debt tax shield.
Dividends provide income to the owners of the stock.
If you are receiving dividends from a life insurance policy, do you have to pay taxes and what %