Illustration
A payment of 2 on a purchase price of 40 implies 5% before deductions, not a promise for next year.
FinFly Explains / Economy
Dividends are shareholder distributions
A company may distribute funds to shareholders. This is not guaranteed deposit interest.
Verify the decision
FinFly recommends checking issuer approval, eligibility rules and payment date. A recommendation may not be final approval.
Total outcome
Share-price changes and costs also matter. Dividends do not prevent a loss on sale.
Method
Primary sources
The explainer is checked against these institutional and industry sources. Links open the original material.