answersLogoWhite

0

Yes. All companies who pay dividends usually do so out of Retained Capital. Even real estate companies (REITS, private partnershiplps, etc) with losses "on the books" because of depreciation or other allowed tax deferrals/credits can pay dividends, and most do. Sometimes you see venture Capital companies take control of a company and pay a special dividend out of "capital."

User Avatar

Wiki User

11y ago

What else can I help you with?

Related Questions

Can you explain the difference between capital gains and dividends?

Capital gains are profits made from the sale of an investment or asset, while dividends are payments made by a company to its shareholders from its earnings. In simple terms, capital gains come from selling something for more than you paid for it, while dividends are a share of a company's profits distributed to its shareholders.


Do you pay capital gains on dividends?

No, you do not pay capital gains tax on dividends. Dividends are typically taxed at a different rate than capital gains.


What is a share of profits distributed to stockholders?

dividends


Profits of a corporation that is distributed to its stockholders?

dividends


Is dividend ordinary income?

Most dividends are. However, long term capital gains distributions from a mutual fund are capital gains. Liquidating dividends and return-of-capital dividends can be capital gains. And, to make matters more confusing, some dividends, knows as "qualifying dividends," are taxed at long term capital gains rates even though they are not capital gains.


Of what significance are stock dividends as factors of production?

Although in business usage stock dividends are distributed profits, in economic analysis they figure as returns to capital, a kind of interest payment, since they are a return to finance rather than to entrepreneurship


Are dividends considered capital gains?

Dividends are not considered capital gains. Capital gains are profits made from the sale of an investment, while dividends are payments made by a company to its shareholders from its profits.


What is capital withdrawal?

This is nothing but the capital withdrawn which is distributions/dividends.


What is the difference between capital reserve and reserve capital?

Capital reserve is a reserve created to deal with general, unspecified contingencies such as inflation. It is a fund set aside for the specific purpose and can not be distributed for other uses. Normally it is legally not distributable as dividends to shareholdersReserve Capital is the part of the Authorised capital which is not yet called up


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.


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.


Do mutual funds pay dividends to investors?

Yes, mutual funds can pay dividends to investors. Dividends are typically distributed by mutual funds that invest in dividend-paying stocks or bonds. Investors receive these dividends as a share of the fund's income.