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Why do comapanies have to pay income to stockholders as dividends?
Wiki User
∙ 16y ago
As incentive for people to buy stock in that particular company
Wiki User
∙ 16y ago
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Why must stockholders pay taxes on dividends?
corporations must pay taxes on their incomes, profit is a form of income, and a dividend is a portion of corporate profits paid out to stockholders, and stockholders must pay personal income tax on those dividends.
What does double taxation mean?
Corporations pay income taxes on their profits, and stockholders pay taxes on their dividends.
What following best represents the stream of income that is available to common stockholders?
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.
Why do investors buy stocks that pay dividends?
Dividends provide income to the owners of the stock.
Can you pay dividends from contributed capital?
Dividends are deducted of the retained earnings which is part of the contributed capital and that must be done according to the dividends policy The dividend policy of a firm relates to management's propensity to distribute earnings to stockholders.
What are Conservative bonds and stocks that pay regular dividends.?
Income funds
What conservative bonds and stocks that pay regular dividends?
Income funds
Conservative bonds and stocks that pay regular dividends?
Income Fund...
A decrease in a firm's willingness to pay dividends is likely to result from an increase in its what?
A decrease in a firm's willingness to pay dividends is likely to result from an increase in its profitable investment opportunities. A dividend is a payment made by a corporation to its stockholders. It is a usually a distribution of profit.
What do income stocks pay?
pays dividends at regular times during the year
What are stocks called that pay high dividends over time?
Income Stocks
What does Disney do with its money?
Pay dividends to its stockholders, pay salaries to its employees, pay taxes to various governments, make charitable donations, and invest some of it in company projects ... pretty much the same thing as any other company, really.
