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When might a company pay out dividends?

Updated: 8/17/2019
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Notchrishanson

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15y ago

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When it has reached a point of stable earnings.

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15y ago
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Q: When might a company pay out dividends?
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Related questions

When do you usually pay dividends?

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.


How do you use dividends in a sentence?

The dividend of the mans pay was not satisfying.


Are dividends paid out weekly in a limited company?

It is not normal for shareholder dividends to be paid weekly. Generally they are paid annually, bi annually or quaterly however there is no limitations on the time scales of the payments between dividend payments. You can legally pay dividends to the shareholders provided the company is in profit (not trading insolvently) and you might want to check your articles of association when you formed the company.


What is the relevance of dividend cover if dividends are paid out of distributable profits?

Because dividend cover represents the amount of times by which dividends can be paid by profits. i.e. the company's ability to pay it's dividends. The higher the dividend cover the greater the ability of the company to pay dividends out of it's distributable profits. Dividends according to companies act legislation can only be paid out of distributable profits hence the relevance of dividend cover represents the companies ability to pay their dividends.


Do you pay dividends?

"You" depends on whom you are referring toYou as in Investors / Individuals - the answer will be NO.. individuals don't pay dividends they receive dividends as a return on the money they invested in a company.You as a company that sales shares to the public - the answer will be YES. companies pay dividends to its investors when their business are making profits.to help you understand better:What is a dividend? - It is a money paid to the investor by the company he invested in, as a return on his investment (ROI) or interest as it is commonly known.


How are Dividends are paid out of profits?

Yes. companies pay out dividends to its share holders from the profit they make out of their business. The more the profit the company makes the greater would be the dividends paid out to the shareholders.


Does Ford Motor Company pay dividends?

Yes Ford Motor Company pay dividends. It dates pack to 1911. Go to this website http://www.nytimes.com/1985/01/11/business/ford-raises-its-dividend-the-ford-motor-company.html or ford.com, type in dividends. Hope this helps Denice-


Meaning and factors effecting dividend policy?

A dividend policy is a company's approach to distributing profits back to its owners or stockholders. If a company is in a growth mode, it may decide that it will not pay dividends, but rather re-invest its profits (retained earnings) in the business. If a company does decide to pay dividends, it must then decide how often to do so, and at what rate. Large, well-established companies often pay dividends on a fixed schedule, but sometimes they also declare "special dividends." The payment of dividends impacts the perception of a company in financial markets, and it may also have a direct impact on its stock price. From-Gudlu Mohanty....!


A decrease in a firm's willingness to pay dividends might result from an increase in its?

Expenditure & losses...


Why do comapanies have to pay income to stockholders as dividends?

As incentive for people to buy stock in that particular company


Is it compulsory to pay dividends on common equity?

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.


What is non-cumulative perference share?

non cumulative shares are those shares which do not get previouse dividends due to company's bad financial position. for example, if they were suppose to get dividend @10% last year, but could not get due to bad financial position of the company, and in the current year company gets stable and is willing to pay dividend, so it will pay only current year dividends and not last year dividends... if it was cumulative share company would pay last year and current year dividend.. conclusion: non cumulative share doesnot get previouse dividends and cumulative share gets all dividends (previouse+ current) when compnay restores its good financial position.