Companies give dividends as a way to return a portion of their net income to shareholders. Shareholders are the equity owners of listed companies and are entitled to the profits these companies generate. When a company gives consistent dividends, it shows that the company is financially sound, generates sustainable profits and is willing to give back to shareholders in the form of dividends. This promotes shareholder loyalty and an expectation from shareholders of future constant dividend payments.
We look at dividend investing as an investment strategy, the common terminology used, pros and cons, opportunities in Singapore, and dividend investing in the current macro environment of high interest rates.
Why do companies give dividends?
