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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.

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AnswerBot

5mo ago

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Related Questions

How often are dividends paid?

Dividends are paid to shareholders by three types. They can either be paid annually, or biannually, or on quarterly basis.


To whom and how are dividends usually paid?

Dividends are usually paid to the investors of a company. These are paid on an annual or, more commonly, a quarterly basis.


Cash dividends are paid on the basis of the number of shares?

outstanding


Dividends are paid from?

Dividends are paid from corporate profits.


Dividends per share is equal to dividends paid....?

Dividends paid divided by the toal number of shares outstanding.


How many times per year are dividends paid?

Most corporatiions that pay dividends, pay them 4 times a year.


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

Stockholders


When should a corporation pay dividends to its shareholders?

A corporation should pay dividends to its shareholders when it has excess profits that it wants to distribute to them as a form of return on their investment. Dividends are typically paid on a regular basis, such as quarterly or annually, depending on the company's financial performance and dividend policy.


Why do dividend decisions based on an overstated profit lead to erosion of capital?

By definition, dividends are paid out of profits, they can not be paid out of anything else (not loans, not losses, etc). If the dividends paid exceed profits for the same period the distribution is considered a return of capital (stock basis, additional paid in captial, etc). So an overstated profit WILL reulst in "erosion of capital" if correction of the overstatement results in profits being less than dividends.


Are dividends paid out of retained earnings?

Yes, the amount of x dividends paid will reduce retained earnings by x.


What is Paid up additional Insurance?

Paid up additions is a method of receiving your dividends from a mutual insurance company. Paid up additions is actually a very good method as it allows a policyholder to use their dividends to purchase paid up additional insurance in the policy thereby increasing coverage and increasing annual dividends because dividends are also paid on the additional insurance. You do not have to pay taxes on the dividends paid in this manner either.


How often dividens are paid?

Most dividends on stocks and shares are paid twice a year, some pay four times a year.