Stockholders
stockholders
Dividends are paid from corporate profits.
The portion of a corporation's profits paid to shareholders is referred to as a dividend. Dividends are typically distributed on a per-share basis and can be paid in cash or additional shares of stock. Companies often distribute dividends as a way to share their profits with investors, reflecting their financial health and commitment to returning value to shareholders.
Profits paid to stockholders are called dividends.
A corporation distributes its profits as dividends primarily to its shareholders, who own shares of the company's stock. The amount and frequency of the dividends depend on the company's financial performance and its dividend policy. Shareholders typically receive dividends in proportion to the number of shares they own, though some companies may opt for different distribution methods. Additionally, dividends may be reinvested in the company through dividend reinvestment plans (DRIPs).
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.
profits paid out as dividends
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.
They are called dividends.
Earnings are taxed first as corporate profits, then as personal income after dividends are paid.
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.
From retained earnings.