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When it has reached a point of stable earnings.

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16y ago

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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.


Is a company legally obligated to pay preferred dividends?

A company is not legally obligated to pay preferred dividends, but failing to do so can have negative consequences for the company's reputation and ability to attract investors.


Why would a company choose to pay dividends?

A company may choose to pay dividends to reward shareholders for their investment, attract new investors, and demonstrate financial stability and confidence in the company's future performance.


How do you use dividends in a sentence?

The dividend of the mans pay was not satisfying.


Do companies in the SP 500 pay dividends?

Yes, many companies in the SP 500 pay dividends to their shareholders. Dividends are a portion of a company's profits that are distributed to shareholders as a form of return on their investment.


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.


How do I pay taxes on dividends?

To pay taxes on dividends, you typically report the income on your tax return and pay taxes at your applicable tax rate. You may receive a Form 1099-DIV from the company or broker that paid you the dividends, which will help you accurately report the income.


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.


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-


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.


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....!