How do dividends work?
An example of an AI chatbot conversation about how dividends function in investing.
Can you explain how dividends work?
Sure! Dividends are payments made by a corporation to its shareholders, usually from profits.
How often do companies pay dividends?
Companies typically pay dividends quarterly, but some may pay annually or semi-annually.
What factors influence a company's decision to pay dividends?
Factors include profitability, cash flow, and the company's growth strategy. Not all companies pay dividends.
Are dividends taxed?
Yes, dividends are generally subject to taxes, but the rate can vary based on your income and the type of dividend.
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