> Where does the money come from for dividends on stocks that pay dividends?

Where does the money come from for dividends on stocks that pay dividends?

Posted at: 2014-12-05 
It comes from the profits on the company's operations. Sometimes the company makes a profit and pays dividends, sometimes the company doesn't make a profit - no dividends are paid.

Some investors rely on the increased value of the stock instead of dividends. These are growth stocks. The company invests profits back into the company (to make it grow) by introducing new products for example. Sometimes it works, sometimes it doesn't.

Earnings.

The company is a money making business(hopefully). Whoever owns the stock are the owners of the company.

As the company earns money, some of that may be paid directly to the owners, some may be reinvested in the company to make repairs, open new stores or otherwise increase future earnings.

. .

From the company that issued the stock.

profits from the company you own stock in