InvestorQ : Why would a company distribute its earnings through dividends to common stockholders?
preetam lenka made post

Why would a company distribute its earnings through dividends to common stockholders?

Answer
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Neelam Naik answered.
5 months ago


The shareholders are owners of the company and they need to be rewarded for taking risk. Also, dividends payments are indication that the company has cash in its books since dividend actually involve cash outflow.