What Are Dividends?

1.	What Are Dividends?
Answer» DIVIDENDS are DECLARED by directors at their discretion—they are not owed and shareholders MAY have no remedy if they are not made. They are REPAYMENTS of CAPITAL, not interest. They are made out of after-tax profits and thus are not tax-deductible. Dividends are declared by directors at their discretion—they are not owed and shareholders may have no remedy if they are not made. They are repayments of capital, not interest. They are made out of after-tax profits and thus are not tax-deductible.

Answer»

DIVIDENDS are DECLARED by directors at their discretion—they are not owed and shareholders MAY have no remedy if they are not made. They are REPAYMENTS of CAPITAL, not interest. They are made out of after-tax profits and thus are not tax-deductible.

Dividends are declared by directors at their discretion—they are not owed and shareholders may have no remedy if they are not made. They are repayments of capital, not interest. They are made out of after-tax profits and thus are not tax-deductible.

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