Possible for a company that is losing money still pay dividends to its share holders?

dividends aren't paid profit each fiscal year. instead, they're paid retained earnings, part of stockholders' equity, in balance sheet.

here's way at. there companies profitable, fiscal year after year, pay little or 0 dividends shareholders. apple example of until recently. paid no dividends since late 1990's, paid very, large dividend shareholders earlier year. see table 1.

amazon company profitable, pays no dividends on stock ever, see balance sheet below, table 2. stockholders equity toward bottom. notice large positive retained earnings, yet no dividend paid @ all.

company not profitable fiscal year can still pay dividends shareholders. eventually, board of directors may decide reduce dividends or suspend dividends, if company not profitable again. may take many quarters or years happen. corporate governance decision whether pay or not pay dividends shareholders. amazon pay dividends chooses not to. apple paid big lump dividend.

suppose there negative profit fiscal year. company lost money in year overall. possible stock holders dividends company when losing money?

Business & Finance Investing Next