Dividends

Dividends refer to the distribution of profits by companies to their shareholders. As a rule, dividends are agreed upon at the annual shareholders’ meeting of the stock corporation, and the paid-out amount reflects the current earnings situation of the company.

However, there is no guarantee of dividend payments. Depending on the strategy and economic situation, some companies do not pay dividends but use the money generated to invest in research, growth, new markets, and innovations or to repay debts.

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