Why Some Companies Skip Dividend

[Chinyere]

Not every company that makes profit pays dividend.
Reasons:
They want to expand
They want to reduce debt
They want to build new factory
They want to acquire another company
So no dividend does not always mean the company is doing badly.

Should companies explain to shareholders clearly why they skip dividend?

 

[Mr.Simon]

Not every company that makes profit pays dividend.
Reasons:
They want to expand
They want to reduce debt
They want to build new factory
They want to acquire another company
So no dividend does not always mean the company is doing badly.

Should companies explain to shareholders clearly why they skip dividend?

Yes, they absolutely should.
If a company skips dividend, investors deserve a clear reason. It builds trust and helps shareholders understand the long-term plan (expansion, debt reduction, etc.).

Silence creates doubt. Transparency keeps investors confident even without dividends.

 

[Chinyere]

Yes, they absolutely should.
If a company skips dividend, investors deserve a clear reason. It builds trust and helps shareholders understand the long-term plan (expansion, debt reduction, etc.).

Silence creates doubt. Transparency keeps investors confident even without dividends.

Investors deserve clear reasons..... Shareholders over to you.... speak up during AGM