Why Would A Company Pay Dividends?
You might be wondering, since profits are so important to a company, why would a company pay out its earnings in the form of dividends to its shareholders? Well, here are two main reasons:
To Show Appreciation for Support from Existing Shareholders
It is a form of giving back to the shareholders who have trusted and supported the company. In addition, dividend payments are another way to showcase the company's robust earnings. This can attract more investors as well as retain the trust of existing shareholders.
To Attract New Investors
The value of dividends payouts received varies, mainly depending on the company's business conditions. High-value dividends signify that the company is doing well and has generated stable earnings. This will usually attract more investors.
These are some of companies that might be paying dividends to its shareholder;