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Shareholders get paid dividends right? Have a firm loan the utility the costs and recover them from the dividend payments.
by willcipriano 3y ago
Shareholders get paid dividends right?
Have a firm loan the utility the costs and recover them from the dividend payments.
- prepend 3y agoDividends come out of profits and profits come out of revenue. “Recovering from the dividend” is just another way of saying you are using revenues to pay for something. Paying a dividend out and then taking part back is not only inefficient but would still violate any prohibition to spend revenue on something. If you wanted to do this, it’s just the same as reducing the dividend by some amount and the paying that amount out to a different expense. Also, dividends are post tax so this is super inefficient in that you wouldn’t be able to deduct the expense if wanted to pay out as dividend and then have shareholders pay the expense.