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Why do some companies pay a dividend, while other companies do not?
Its depends upon the company policy and net profit. Might be they have policy to retain as all amount as retained earning or invest in new projects or issue the shares only. Second, Dividend is the dependent variable that depends upon profit. Thanks
Payment of dividends depends on the performance of the company and Comapany policy.
Dividends can only be paid when a company realizes profits. Profit can also be retained as retained earnings rather than paying dividends depending on the company policy.
