The fact that dividends are discretionary means that companies are entirely free to pay whatever dividends they want.

Name: The fact that dividends are discretionary means that companies are entirely free to pay whatever dividends they want.
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While dividends are discretionary and companies are not obligated to pay them, the amount and timing of dividends are influenced by the company's financial health, future investment plans, and sometimes regulatory or contractual constraints.

The Fact That Dividends Are Discretionary Means That Companies Are