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Why Don’t All Profitable Companies Pay Dividends?

Many investors assume that profits automatically become dividends. In reality, profits create choices. A dividend is just one of them.

Most investors focus on buying low and selling high. This article explores a second source of investment returns that is often overlooked: dividends.

Most dividend investors focus on yield and history. The real question is whether that income will last.

Looking at past payments is easy. Assessing whether they will continue requires a different lens — one that focuses on trends, not history.

Dividend yield is often the first metric investors look at. But on its own, it says very little about the quality of the income.

The payout ratio shows how much of a company’s earnings are distributed as dividends — and provides an early indication of sustainability.