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Dividends provide income to the owners of the stock.

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9y ago

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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.


Why should investors consider purchasing stocks that do not pay dividends?

Investors should consider purchasing stocks that do not pay dividends because these stocks have the potential for higher capital appreciation. Instead of receiving regular dividend payments, investors can benefit from the stock's value increasing over time, leading to potential higher returns in the long run.


What is a dividen in stocks?

A dividend in stocks is a portion of a company's earnings that is distributed to shareholders, typically in cash or additional shares. Companies may pay dividends as a way to share profits with investors and signal financial health. Dividends are usually paid on a regular basis, such as quarterly, and can be an important source of income for investors. Not all companies pay dividends, particularly those that reinvest profits for growth.


When do you have to pay taxes on dividends?

You have to pay taxes on dividends when you receive them from investments in stocks or mutual funds.


How can the Great Depression be traced to American investment in the stock market?

Investors borrowed money to buy rising stocks, but could not pay it back once the stock prices fell.


Does the SP 500 give dividends to investors?

Yes, the SP 500 index includes companies that pay dividends to their investors.


Do stocks that don't pay dividends have value?

The value for anything is whatever someone else is willing to pay for it. This is true for baseball cards and stocks that don't pay dividends as well.


Do you have to pay taxes on stocks?

You have to pay taxes on the profits when you sell or otherwise dispose of the stocks. You also have to pay taxes on dividends.


Which of these describes the process in which investors can buy stocks worth much more than they have to pay for them?

buying on margin A+


What are stocks called that pay high dividends over time?

Income Stocks


Do bond ETFs pay dividends?

Yes, bond ETFs can pay dividends to investors. These dividends are typically generated from the interest payments on the underlying bonds held by the ETF.


Why do some stocks not pay dividends?

Some stocks do not pay dividends because the company may choose to reinvest its profits back into the business for growth and expansion, rather than distributing them to shareholders.