What do dividends paid tell about companies in generalSoluti
What do dividends paid tell about companies in general?
Solution
When a company pays dividend, it means the company is going on well and is earning profits. When a company earnsnprofits, it pays dividend to its shareholders and save some amount of profits for the growth prospects. Dividend payment also helps to increase the value of share as value of share is the present value of its future cashflows.
