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No, corporations are not required to pay dividends on their stocks.

However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in order that those mutual funds might buy their stock.

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15y ago

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Related Questions

Who is guaranteed a dividend in a corporation?

preferred stock holder...


How is preferred stock like a bond in that it offers a fixed dividend payment to investors?

Preferred stock is similar to a bond in that it provides investors with a fixed dividend payment. Just like a bond pays interest to bondholders, preferred stock pays a set dividend to its shareholders.


Why does a stock drop on the ex-dividend date?

A stock drops on the ex-dividend date because on that day, the stock no longer includes the right to receive the upcoming dividend payment. This change in the stock's value reflects the value of the dividend being paid out to shareholders.


What does the size of the dividend per share of stock depend on?

the corporation's profits


What is the effect of a stock dividend on a corporation's stockholders'equity accounts?

The stock Dividend is more or less profit sharing. When a dividend paying company is profitable they pass along those profits to the shareholders in the form of a dividend check.


What is the process for receiving a loan stock dividend?

To receive a loan stock dividend, you must own shares of the company that issues the dividend. The company will announce the dividend payment date, and you will receive the dividend in the form of additional shares of stock or cash, depending on the company's policy.


Corporation has outstanding of 1000 shares of 8 commulative preferrd stock of 100 par what is the amount of prefrred dividend for the year before dividend declared to the common stock?

The total yearly dividend payable to preferred stock is 96000.


Is all dividend income received by one corporation from an investment in the common and preferred stock of another corporation is excluded from taxation?

U/s 10(34) of income tax, dividend mentioned u/s 115o are exempt from payment of income tax thereon. section 115o includes both preferred and equity dividend RECEIVED FROM INDIAN COMPANY.


What is the stock declaration date?

The stock declaration date, also known as the declaration date, is the day on which a company's board of directors announces a dividend payment to shareholders. This date is important because it signifies the company's commitment to return profits to shareholders and provides details about the dividend amount and payment schedule. Shareholders who own the stock before the ex-dividend date will be eligible to receive the declared dividend.


Does your stock pay a dividend for Microsoft?

Yes, Microsoft Corporation pays a dividend. As of my last update, the company has a history of regularly increasing its dividend payments, reflecting its strong financial performance and commitment to returning value to shareholders. For the most current dividend yield and payment information, it's best to check the latest financial news or Microsoft's investor relations website.


What date will be considered in dividend payment or bonus issue by the companies to shareholders?

The date considered for dividend payment or bonus issue by companies to shareholders is typically known as the "record date." Shareholders must own the stock before this date to be eligible for the dividend or bonus issue. The company usually announces the record date alongside the ex-dividend date, which is the date on which the stock must be purchased to qualify for the upcoming dividend. Payments are then made on the specified payment date.


Does the 70 percent dividend exclusion include preferred stock?

70 percent dividend income exclusion on the tax returns of corporations. That is, if a corporation owns preferred stock, it can exclude 70 percent of dividend income and pay income taxes on only 30 percent of dividend income, both preferred and common stock.