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Most business owners are in it to profit financially. Owning stock means you own a portion of that business. Therefore, stock owners are business owners and no different than most in that they want to profit financially. Paying the stock owners dividends is like the owner taking home a bit of profit for the portion of the business they own.
Also, paying dividends helps make a stock more attractive which, in turn, helps to boost the price of the stock. This also profits the stock owners with an inflating stock price.
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∙ 12y ago
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Do stocks that don't pay dividends have value?
The value for anything is whatever someone else is willing to pay for it. This is true for baseball cards and stocks that don't pay dividends as well.
Why do investors buy stocks that pay dividends?
Dividends provide income to the owners of the stock.
What are stocks called that pay high dividends over time?
Income Stocks
How often dividens are paid?
Most dividends on stocks and shares are paid twice a year, some pay four times a year.
What guarantees dividends will be paid to its owners?
preferred stocks
Do stocks that don't pay dividends have value?
The value for anything is whatever someone else is willing to pay for it. This is true for baseball cards and stocks that don't pay dividends as well.
Why do investors buy stocks that pay dividends?
Dividends provide income to the owners of the stock.
Do you have to pay taxes on stocks?
You have to pay taxes on the profits when you sell or otherwise dispose of the stocks. You also have to pay taxes on dividends.
What are stocks called that pay high dividends over time?
Income Stocks
What do stocks pay?
pays dividends at regular times during the year
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...
What do income stocks pay?
pays dividends at regular times during the year
How often dividens are paid?
Most dividends on stocks and shares are paid twice a year, some pay four times a year.
How do you collect dividends per shares on stocks?
no
What guarantees dividends will be paid to its owners?
preferred stocks
