2006-12-19 06:39:00 · 4 answers · asked by gadgetZ 4 in Business & Finance ➔ Investing
Dividends are the portion of the earnings that companies return to its equity investors.
Typically, a portion of earnings are set aside to fund growth in the continuing operations of the firm. Growth Firms usually pay no dividends, and put all of their earnings back into the firm. Mature firms often set aside a portion of the earnings for dividends -- which are paid to stockholders.
2006-12-19 07:08:35 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋
Theoretically, there is no relationship. A corporation with no earnings can pay a dividend (a temporary state of affairs, for sure), and a corporation with considerable earnings might not pay a dividend. In practice, most stocks with earnings will pay dividends to their shareholders (small dividends in the case of "growth" stocks, larger ones for "income" stocks), whereas few corporations operating at a loss will pay any dividends.
2006-12-19 07:24:54 · answer #2 · answered by jerrold 3 · 1⤊ 0⤋
earnings aree compnaies earnings aka their profits.
dividends are the return of value to the investor. Often a portfion of earnings. and sometimesexceeding earnings.
You can have dividends without have earnings in a given year.
You can have earnings and pay out no dividends as well.
Of course, there are some tax distinctions as well. i.e. if you have no earnings, is a dividend really a dividend?
2006-12-19 06:41:28 · answer #3 · answered by Ubiquity 2 · 1⤊ 0⤋
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2016-11-30 23:23:26 · answer #4 · answered by ? 4 · 0⤊ 0⤋