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.
Convertible bonds do not pay dividends; instead, they typically pay interest, which is a fixed return to investors. These bonds can be converted into a predetermined number of shares of the issuing company's stock, allowing bondholders to benefit from potential appreciation in the company's equity. While common stocks may pay dividends, the interest from convertible bonds is generally considered a more stable income source.
Yes, that is common.
no it is not compulsory to pay tax.
You have to pay taxes on dividends when you receive them from investments in stocks or mutual funds.
No, you do not pay capital gains tax on dividends. Dividends are typically taxed at a different rate than capital gains.
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.
To pay taxes on dividends, you report the amount received on your tax return and pay taxes at your applicable tax rate. The tax rate on dividends can vary depending on factors such as your total income and the type of dividends received.
Common stockholders do not have a fixed upper limit on their dividends, as dividends are typically determined by the company's board of directors and can vary based on the company's profitability and financial strategy. While there is no legal cap on the amount a company can pay in dividends, companies may prioritize reinvesting profits for growth over distributing large dividends. Therefore, the actual amount received by common stockholders can fluctuate significantly from year to year.
No, stock does not always pay dividends at all much less monthly.
Yes, bond ETFs can pay dividends to investors. These dividends are typically generated from the interest payments on the underlying bonds held by the ETF.
Dividends equivalent rights are financial instruments that provide holders with the right to receive payments similar to dividends, typically in the context of equity-linked securities or derivatives. These rights are often associated with options or convertible securities, where the holder may receive cash or additional shares as compensation for the absence of traditional dividends. They ensure that investors maintain the economic benefits of dividend payments even if the underlying asset does not pay dividends directly.
Why do companies not pay dividends