Dividends are when companies earn and they decide to give a portion of their earnings to the investors
Portion of cash payments that a corporation gives to its shareholders
Dividends can be issued as
No legal requirement for a company to pay dividends
Paying dividends is either for
The company's management and Board of Directors
A high-value dividend declaration can indicate that the company is doing well and has generated good profits. But it can also indicate that the company does not have suitable projects to generate better returns in the future. Therefore, it is utilizing its cash to pay shareholders instead of reinvesting it into growth.
Reduction of dividend payments can be a BAD SIGN but rest assured...
