Let's talk about dividends.
For the uninitiated, dividend is a distribution of rewards/profits from the company to the owners of the company's stock aka the shareholders. It could be given either in the form of additional stocks, or cash. Sometimes, this option is given to you as a shareholder. Sometimes, it's not. Most of the times, dividends are given at specific regular intervals (eg. every quarter/half-yearly etc). To the shareholders, dividends represent a source of passive income which they could get by simply doing nothing but investing in the company. This works well for passive income investors like me who aims to build a passive income to ultimately match my active income.
So who pay dividends? Do all companies pay dividends?
No, not all companies pay dividends. Simply because it's not sustainable for all companies. Paying dividends means that the company need to distribute a portion of the profits back
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