Sentences with phrase «n't pay dividends to shareholders»

The company doesn't pay dividends to shareholders but reinvests its cash flow into building more ships and expanding its routes.

Not exact matches

Companies in emerging economies choose to generate wealth for shareholders not by paying dividends, but by aggressively reinvesting capital to spur growth.

Preferred shares generally have a dividend that must be paid out before dividends to common shareholders, and the shares usually do not carry voting rights.

«U.S. multinational corporations can defer paying tax on profits they earn abroad indefinitely by agreeing not to use the earnings for certain purposes, like paying dividends to shareholders, financing domestic acquisitions, guaranteeing loans, or making investments in physical capital in the U.S..

First, the indemnity payments offered by the government may not be enough to avoid companies from generating zero to negative EBIDTA, to offset investment and asset impairments, and ultimately to generate enough cash for future investments and net income to continue paying dividends (which would be a severe blow particularly to preferred shareholders).

Keep in mind that a dividend payment is not mandatory; the a business decision by the company to pay out a portion of it's profits to shareholders.

With companies that do not pay a dividend, a shareholder has to sever the ties by selling shares to raise capital to fund their lifestyle.

Lastly, by not paying dividends, shareholder returns are entirely due to stock market price, which is continually set by the whim of the market.

Dividend — A part of a company's profits paid to their shareholders; not the same as the payout bondholders receive when their bonds mature.

Because dividends are not tax free (as they are in pass through entities once tax on entity level earning has been paid by the owners - which would look politically ugly in a publicly held company context letting people receive millions in dividends and pay not taxes on it), and there is no deduction for dividends paid to the corporation (in most contexts), and there is no tax credit for taxes paid at the corporate level against income tax liability on dividends, the end result is that there is double taxation of corporate profits both when the profits are earned by the corporation and again when they are distributed to shareholders.

Because of this favorable tax treatment at the corporate level, the dividends paid to REIT shareholders don't qualify to be taxed at the long - term capital gains rate.

Assuming the company decides not to pay a dividend to the shareholders (so the shareholders can reinvest the money themselves), financial managers within Pfizer must identify new projects that offer a higher rate of return than what they could get if they simply invested the money in the financial market (this being the opportunity cost of capital).

It should be regarded as an estimate of the fund's rate of investment income, and it may not equal the fund's actual income distribution rate, which reflects the fund's past dividends paid to shareholders.

The last 5 years have not been as kind to the stock price, but it hasn't been a disaster for shareholders either — the stock's up 55 % and the company has paid an increasing, regular quarterly dividend.

If the number of shares owned by the investor does not change, the yield on cost will increase if the company increases the dividend it pays to shareholders; otherwise yield on cost will remain constant.

I wish I could say my employer pays a mighty dividend to shareholders, but no, the dividend is not very good.

With companies that do not pay a dividend, a shareholder has to sever the ties by selling shares to raise capital to fund their lifestyle.

If companies can not find a better way of spending its net income to boost overall returns than paying out dividends for the owners, then it makes senses for them to pay out dividends so that shareholders can take the money and invest in elsewhere.

They argued that whether or not a company pays dividends should not matter to shareholders, because it does not affect their overall returns.

Their idea was that shareholders can not be sure that a company will spend its capital wisely, so a dollar paid in dividends is preferable to one kept as retained earnings.

The company hasn't sat entirely idle with ballooning cash balances, instead paying a $ 0.50 quarterly dividend while repurchasing shares to boost shareholder value.

If shareholders own the company, why aren't 100 % of earnings paid out to shareholders as dividends?

Every dollar a company is paying in dividends to its shareholders is a dollar that company is not reinvesting in itself in an effort to make capital gains.

Note that for this deduction, QBI doesn't include capital gains (short or long - term), dividend income, interest income, wages paid to s - corporation shareholders or that you earn as an employee, guaranteed payments to partners or LLC members, or money generated outside the United States.

It is money that you receive just for being a shareholder in a company that pays dividends, and the money is not connected to you buying or selling stock.

Other than choosing to invest in dividend paying companies, I did not actively do anything to earn this money; I made this money simply by being a shareholder.

Although these are generally small - to medium - cap companies, certain large caps have also decided not to pay dividends in the hopes that management can provide greater returns to shareholders through reinvestment.

Income dividends paid by taxable money market funds are dividend income to shareholders, not interest income.

The total dividends a company pays may not be relevant to the shareholders but to the paying company.

For example, dividends owed but not paid to cumulative preferred shareholders accumulate in a separate account (arrears).

Presumably, shareholders of a dividend stock like the fact that it pays a decent dividend, and a low ratio gives confidence that the dividend won't be reduced (and / or likely to be increased in the future).

I think Bernard Olivier's comments that they want to return to paying dividends but not until the financial status and cash flow has improved shows a more balanced and sensible pro shareholder approach.

I'm merely stating that after funding the pension (in line with mgmt comments) and paying the expected dividend (while not an obligation to shareholders, mgmt knows the company's relative valuation is at least partially based on its yield relative to peers and will not likely cut it) there is no capital left for growth, share repurchaes or to raise the dividend.

This is a special problem for ETFs that are organized as unit investment trusts (UITs), which, by law, can not reinvest dividends in more securities and must hold the cash until a dividend is paid to UIT shareholders.

Berkshire Hathaway (BRK - A, BRK - B), for example, does not pay a dividend because Warren Buffett — the company's chairman and CEO — believes that reinvesting provides more long - term value to shareholders (the company did pay one dividend back in 1967).

But even if that's not the case the company is very cheap based on both book value and cash flows, and best off all management is incentivized to create shareholder value, is paying a big dividend and buying back stock.

Others may not pay a dividend if they choose to reinvest their earningsEarnings For companies, it's the money they make and share with their shareholders.

A dividend is one method of returning value to shareholders, some companies pay richer dividends than others; some companies don't typically pay a dividend.

When your company shuts down, you don't pay salaries or dividends anymore, you sell up and return the money to the shareholders.

-LSB-...] It's one that's profitable rather than not profitable, returning cash to shareholders (paying a dividend) rather than not, and growing rather than -LSB-...]

An accumulated dividend is a dividend on a share of cumulative preferred stock that has not yet been paid to the shareholder.

To help you in your quest to find some great, high - paying stocks to supplement your 529, I've screened for companies that pay enormous dividends, but which also have five - year betas below 0.90 — meaning they haven't taken shareholders on as much of a rollercoaster ride as the overall market has seen latelTo help you in your quest to find some great, high - paying stocks to supplement your 529, I've screened for companies that pay enormous dividends, but which also have five - year betas below 0.90 — meaning they haven't taken shareholders on as much of a rollercoaster ride as the overall market has seen latelto find some great, high - paying stocks to supplement your 529, I've screened for companies that pay enormous dividends, but which also have five - year betas below 0.90 — meaning they haven't taken shareholders on as much of a rollercoaster ride as the overall market has seen latelto supplement your 529, I've screened for companies that pay enormous dividends, but which also have five - year betas below 0.90 — meaning they haven't taken shareholders on as much of a rollercoaster ride as the overall market has seen lately.

The company is very efficient in using up all the cash it has and it is not necessarily for the cause of paying dividends to the shareholders (current yield, 1.2 %) or buying back common stock (net purchase in last 10 years = zero).

Financial covenants often limit the borrower's purchase of new assets, changes in control, the use of the borrowed funds, and the payment of dividends (so that shareholders can not vote to pay themselves huge dividends, leaving nothing for the creditors).

Because these institutions operate on a not - for - profit basis, the savings are passed on to the members in the form of low interest rate loans and high - interest rate savings accounts keeping more money in the local community, rather than paying high salaries for bank executives or dividends for shareholders.

It may not equal the fund's actual income distribution rate, which reflects the fund's past dividends paid to shareholders.

I wouldn't be too surprised when a long - term investor in Nestlé would see some take - overs, maybe even one or two spin - offs and most important: a lot of dividends paid out to a shareholder willing to sit on the stocks for decades.

Also, insiders own less than 2 % of outstanding shares, so the motivation for major shareholders to pay a special dividend isn't as strong as it is for a company with very high insider ownership.

Single proprietorships, even if they are incorporated as a limited - liability corporation (LLC), and especially those in which the proprietor is the sole employee, are usually treated as pass - through entities by the IRS, and any «dividends» paid by the LLC to its sole shareholder are deemed to be self - employment income for the proprietor, and not dividends at...

This is where the theory and reality diverge: The majority of companies that don't pay out a significant portion of cash flows in dividends (or stock buybacks, though I place more value on dividends, as stock buybacks could be postponed) more often than not end up destroying shareholder wealth in empire - building acquisitions or marginal capital investments (if they had better investments to begin with they would spend cash right away).