Startups, may not offer regular dividends since these companies may be in the early stages of development.
Instead, they retain earnings for research and development, business expansion, and operational activities.
A company with a long history of dividend payments that declares a reduction of the dividend amount, or its elimination, may signal to investors that the company is in trouble.
However, a reduction in dividend amounts or a decision against a dividend payment may not necessarily translate into bad news for a company. The company's management may have a plan for investing the money such as a high-return project that has the potential to magnify returns for shareholders in the long run.
Created: 2023-07-25 Tags: #fleeting Link: 3. Resources/Finance/Stocks/Dividends in stocks
