business questions - answers to business questions
*Business questions>>>Investing Questions

Why do some companies give out dividends and some do not?

Question:
I have noticd even high profit companies dont give out divdends and some do..or vise versa, a low profit will give out nice dividends......why does a company not choose to do dividends and is it possible the could start doing it? Does that ever happen?

Answer:
Some companies choose to reinvest their profits to make their company grow. Companies that do not give out dividend can and do start giving them out, either as special dividends or regular dividends. Just a little while ago, Microsoft gave out a huge dividend as a one-time deal. If a company does not give out dividends, you make your money when you sell the stock. Any retained earnings should increase the value of the stock.
Related Questions
  • Why do some companies give out dividends and some do not?
  • Is there a day of the week that stocks go up more often?
  • Historically speaking? Why is GOLD valuable? Is it a cure for something or does it just look cool?
  • what is the closing price of a stock?
  • Corperate bond, what happends to your investment if the company is bought?
  • CAPM and APT - I need a "dumbed down" explanation.?
  • Should the Cancer Society be listed on the NYSE?
  • Are there online brokers for investing in foreign stocks?
  • Where can we get good e-books on futures and options trading for free?
  • Where can I find a free online financial calculator to compute stock prices?
    • Categories
    Taxes Small Business Renting & Real Estate Personal Finance Other - Business & Finance Investing Insurance Credit Corporations Careers & Employment Advertising & Marketing
       

    business questions and business answers
    Loan,Banking and CreditFor personal non-commercial use only. All rights reserved.