Question: Why do some companies give out dividends and some do not? I have noticd even high profit companies dont give out divdends and some do..or vise versa, a low profit will give out nice dividends......why does a company not choose to do dividends and is it possible the could start doing it? Does that ever happen?

Answer: Some companies choose to reinvest their profits to make their company grow. Companies that do not give out dividend can and do start giving them out, either as special dividends or regular dividends. Just a little while ago, Microsoft gave out a huge dividend as a one-time deal. If a company does not give out dividends, you make your money when you sell the stock. Any retained earnings should increase the value of the stock.
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