Dividends
- Share Dealing
About Dividends
When
a company is considering how much of its profit to pay in dividends,
they are up against various conflicting interests. The shareholders
clearly want a share of the profit in return for their investment
in the shares, but they also they want the company to grow in the
future. To grow in the future, the company needs to invest a proportion
of the profit. Whatever is invested can't then be paid to the shareholders
as dividends.
The
Board of Directors have to try to take account of these conflicting
interests and decide on the level of dividend they are going to
recommend to be paid. This recommendation is then considered at
an Annual General Meeting of the company. The Directors should be
in the best position to decide what needs to be re-invested and
how much can be spared to be paid out as dividends.
List
of Online Share Dealers
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
