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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

7mo 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.


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.


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

Stockholders


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.


When does AT and T pay dividends?

AT&T typically pays dividends on a quarterly basis, with payments usually issued in early February, May, August, and November. The specific dates can vary each year, so it's advisable to check their investor relations website for the most current information. Dividends are paid to shareholders of record on a designated date prior to the payment date.


Are dividends paid in cash?

Dividends can be paid in cash, which is the most common form, where shareholders receive a direct payment based on the number of shares they own. However, companies can also issue dividends in the form of additional shares, known as stock dividends. The payment method depends on the company's policies and the preferences of its shareholders.