3 ms·
Dividends are not always frequent and predictable. There is certainly no requirement that they be. A board can decide to pay a dividend (or not pay one) or to r
by tathougies 8y ago
Dividends are not always frequent and predictable. There is certainly no requirement that they be. A board can decide to pay a dividend (or not pay one) or to reduce the dividend at any time, unless the corporations bylaws somehow protect it (although they can typically change these as well).
- xapata 8y agoYes, but would you agree that dividends are typically frequent and predictable? I think that's a fair statement in comparison to stock buybacks.
- tylerhou 8y agoSure. But that's not a fundamental difference, that's just a difference in normal usage. The only fundamental difference between stocks and dividends from an investor perspective that I'm aware of is tax treatment.