Why Do Companies Increase or Decrease Dividends?
  • 2 years ago
When you purchase a stock, you are likely hoping that it will increase in value. However, you might also hope that the stock will pay a dividend. At times, companies will raise and lower their dividends in the run-up to earnings season, but why do they make these moves? When a company increases its dividend, it is signaling that it outperformed expectations, and the dividend per share you should have been paid needs to increase. On the other hand, a decrease in the dividend per share amount indicates that the company did not meet expectations. In both cases, you need to do your homework and determine if the company will continue on its current path or not. You can come back to Benzinga Pro or your newsfeed at any time for more information on stocks, dividends, and quarterly earnings.