Dividends are paid regardless if the company makes a profit.

Name: Dividends are paid regardless if the company makes a profit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Dividends are paid out of profits that are earned by the company. If a company doesn't make a profit, it doesn't have money available for dividends. Therefore, dividends are not guaranteed and can be affected by various factors such as company performance, financial position, and shareholder preferences.

Dividends Are Paid Regardless If the Company Makes a Profit