By Leanna Kelly There comes a time when a company becomes so profitable that it has more money than it needs to sustain business operations. When this happens, the company has several options for how to allocate that excess cash. One option is to pay out a dividend to shareholders.
A dividend is the distribution of after-tax profit of an entity, paid to shareholders depending on the class and number of shares held. It’s a reward for shareholders and a sign of the company’s continued ability to meet and exceed expectations. Not every company can or will pay a dividend, but those that …read more
