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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.

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15y ago

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Dividends are paid from?

Dividends are paid from corporate profits.


Profits paid to stockholders are called what?

Profits paid to stockholders are called dividends.


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.


Ask us anythingA. Sole proprietorship Profits paid out as dividends B. Partnership Sharing of profits C. Corporation No profits made D. Government corporation All profits retained?

A sole proprietorship typically allows the owner to take profits directly, often treated as personal income rather than dividends. In a partnership, profits are shared among partners based on their agreement. A corporation can distribute profits as dividends to shareholders, but if no profits are made, no dividends are paid. Government corporations generally reinvest any profits back into the organization rather than distributing them.


On what basis are most dividends paid?

Most dividends are paid to shareholders based on the company's profits and financial performance. Companies typically distribute a portion of their earnings to shareholders as dividends as a way to reward them for their investment in the company.

Related Questions

Dividends are paid from?

Dividends are paid from corporate profits.


A corporation gives out its profits as dividends paid to its?

Stockholders


Profits paid to stockholders are called what?

Profits paid to stockholders are called dividends.


What is a feature of a sole proprietorship?

profits paid out as dividends


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.


A coorporation gives out its profits as dividends paid to whom?

stockholders


The part of the profits that are paid to shareholders is called?

They are called dividends.


How are corporate profits taxed?

Earnings are taxed first as corporate profits, then as personal income after dividends are paid.


Are dividends paid out of the current year's profits or from retained earnings?

From retained earnings.


Ask us anythingA. Sole proprietorship Profits paid out as dividends B. Partnership Sharing of profits C. Corporation No profits made D. Government corporation All profits retained?

A sole proprietorship typically allows the owner to take profits directly, often treated as personal income rather than dividends. In a partnership, profits are shared among partners based on their agreement. A corporation can distribute profits as dividends to shareholders, but if no profits are made, no dividends are paid. Government corporations generally reinvest any profits back into the organization rather than distributing them.


On what basis are most dividends paid?

Most dividends are paid to shareholders based on the company's profits and financial performance. Companies typically distribute a portion of their earnings to shareholders as dividends as a way to reward them for their investment in the company.


Corporate profits paid to people who hold stock are called what?

Corporate profits paid to shareholders are called dividends. Dividends are typically distributed on a per-share basis and can provide a steady income stream for investors. Companies may choose to reinvest profits back into the business instead of paying out dividends, depending on their growth strategies and financial health.