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Why limited companies pay dividend?

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Anonymous

13y ago
Updated: 8/17/2019

because they have enough cash on hand to be able to share with existing shareholders without leaving the company with little cash on hand.

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Wiki User

13y ago

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Most companies will pay twice a year, an interim dividend followed by a final dividend, some companies pay four times a year.


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Interim Dividend: Companies can pay dividend at the end of financial year which is called final dividend but sometimes companies declare two dividends one in the middle of the financial years that dividend is called interim dividend and then one at the end of the financial year which is called final dividend.


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