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Most business owners are in it to profit financially. Owning stock means you own a portion of that business. Therefore, stock owners are business owners and no different than most in that they want to profit financially. Paying the stock owners dividends is like the owner taking home a bit of profit for the portion of the business they own.

Also, paying dividends helps make a stock more attractive which, in turn, helps to boost the price of the stock. This also profits the stock owners with an inflating stock price.

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13y ago

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