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When companies set their dividend payout, they generally aim for a rate that is?

Chelsea Hayes

in Business

1 answer

1 answer

Carlton Burgess on January 25, 2019

Companies set their dividend payments in general, the goal is a rate that is when it is sustainable. The reason of the payment of dividends is the amount of dividends paid to the shareholders in relation to the amount of the total of the net income of a company. The amount that is not paid out in dividends to shareholders is being held for the growth of the company. The amount that is held by the company is called retained earnings.

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