why no dividends???

2021-08-26

There are a number of reasons why a corporation may choose to pass some of its earnings on as dividends, and several other reasons why it might prefer to reinvest all of its earnings back into the company.

KEY TAKEAWAYS

Dividends are corporate earnings that companies pass on to their shareholders.

Paying dividends sends a message about a company's future prospects and performance.

Its willingness and ability to pay steady dividends over time provides a solid demonstration of financial strength.

A company that is still growing rapidly usually won't pay dividends because it wants to invest as much as possible into further growth.

Mature firms that believe they can increase value by reinvesting their earnings will choose not to pay dividends.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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