Why do some companies pay a dividend, while other companies do not?

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Posted by:
Samiullah Jadoon
04-November-2016

Accounting Financial Reporting Financial Accounting Finance Financial Statements

Question added by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator
Date Posted: 2017/03/26

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7 Answers

by Khaliq Raza MBA MS CFE AFA , Senior Accountant , ARCO TURNKEY SOLUTIONS CONTRACTING LLC

Its depends upon the company policy and net profit. Might be they have policy to retain as all amount as retained earning or invest in new projects or issue the shares only. Second, Dividend is the dependent variable that depends upon profit. Thanks

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by Mir Sajid Quryshi , QA/QC MANAGER , Contracting and Construction Enterprises

As per my experience the companies run on partnerships do not pay dividends and hold their employees like a single owner looks for the growth of the company.

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by Mercy Kiprono , FARM ACCOUNTANT , ZENA ROSES LTD

Payment of dividends depends on the performance of the company and Comapany policy.

Dividends can only be paid when a company realizes profits. Profit can also be retained as retained earnings rather than paying dividends depending on the company policy.

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