briefly discuss some real world factors that may support the payment of high and low dividends

Solutions

Expert Solution

Dividends are monies that are paid out regularly to stockholders of a company out of the company's profits. In this lesson, we will talk about low dividend payouts and how both companies and investors can benefit from this. A low dividend payout is when a company keeps the majority of its profits and reinvests it in the business and then gives out the rest as dividends. For example, if a company reinvests 60% of its profits back into the business and then pays out the rest in dividends, it has a dividend payout of 40%. If the company only keeps 10% of the profits and pays out the rest, then this company has a payout of 90%, which is high.

While some companies will pay out the majority of its profits as dividends, others choose to keep most of the profits and pay out a small portion of its profits as dividends. Also, some investors even look specifically for companies that have a low dividend payout. Let's talk about why this is so.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Which macroeconomic factors make real estate have low or high demand. So, this relating to the...

Which macroeconomic factors make real estate have low or high demand. So, this relating to the topic of Supply and Demand, Consumer Demand, and Supply decision.

Describe some behavioral science principles that support team building. Please give some real world examples of...

Describe some behavioral science principles that support team building. Please give some real world examples of why these principles might be beneficial.

briefly discuss the approaches that may be used in brand valuation.what are some of the critical...

briefly discuss the approaches that may be used in brand valuation.what are some of the critical aspects to be considered in computing brand value

Describe some of the factors that may lead to lower profits when unemployment is too high;...

Describe some of the factors that may lead to lower profits when unemployment is too high; Similarly, describe some of the factors that could lead to lower profits when unemployment is too low. Finally, explain how this limits the ability of policy-makers to push for full employment and instead may give rise to cycles of rising employment followed by lowering employment.

(a) Briefly discuss three approaches that may be used in brand valuation. What are some of...

(a) Briefly discuss three approaches that may be used in brand valuation. What are some of critical aspects to be considered in computing Brand value? (b) Discuss five factors that determine the value of a financial option. Use examples to illustrate your discussion (c) Discuss five major groups of common errors in practice when undertaking corporate valuations ( Marks will be awarded on the strength of explanations and relevant examples)

Use your real-world experience to discuss what factors could potentially prevent the quantity supplied and the...

Use your real-world experience to discuss what factors could potentially prevent the quantity supplied and the quantity demanded in the aggregate labor market. Please give two possible factors and show how they could stop the equilibrium in a framework of wage, quantity supplies and quantity demanded.

Select a country with a high GDP (real or nominal) and a country with a low...

Select a country with a high GDP (real or nominal) and a country with a low GDP ( again with real.or nominal). Contrast what the level of GDP in the countries means for consumers and producers. Based on your findings, is GDP a good measure of economic well-being? Please include a reference. thank you.

What is risk management and discuss some techniques used in information security? Think of a real-world...

What is risk management and discuss some techniques used in information security? Think of a real-world scenario in your organization and how you would apply it.

discuss some of the complex psychological and social factors that may influence individuals' decision to engage...

discuss some of the complex psychological and social factors that may influence individuals' decision to engage in safe sex practices, such as using a condom. Why is knowledge alone not enough to encourage individuals' engagement in healthy behaviors, like practicing safe sex?

1. Briefly discuss three approaches that may be used in brand valuation. What are some of...

1. Briefly discuss three approaches that may be used in brand valuation. What are some of the critical aspects to be considered in computing Brand value? 2. Discuss five factors that determine the value of a financial option. Use examples to illustrate your discussion?

Subjects