Should companies be required to pay cash dividends on thei
Question and Solution
Should companies be required to pay cash dividends on their stock to shareholders, or should it be left up to the companies’ discretion whether they pay dividends or reinvest those funds back in the company? Your father asked you why his investment in a publicly traded stock is not paying him any dividends. He said, “As far as I know, they never have. I invested in the company to get something back and so far, I haven’t received anything. Shouldn’t the company be looking after its shareholders?” Should all companies be required to pay dividends?