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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