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If a company can reinvest profits and grow their marketshare or move into new markets, it's usually in the shareholders interest for them to do so. That reinves
by encoderer 16y ago
If a company can reinvest profits and grow their marketshare or move into new markets, it's usually in the shareholders interest for them to do so. That reinvestment may eliminate or shrink a dividend payment.
Many large companies are unable to achieve significant growth numbers and in those cases it's usually int he shareholders interest to issue a dividend.