How could you respond to your father to help him better

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Reference no: EM13620758

Your father asked you why his investment in a publicly-traded stock is not paying him any dividends.

He comments to you that, "as far as I know, the company has never paid me a dividend. I invested in the company to get something back and so far, I have not received anything. Shouldn't the company be looking after its shareholders?"

1. How could you respond to your father to help him better understand the nature of dividend pay-outs and variances among different companies?

2. Should all companies be required to pay dividends? Why, or why not?

Reference no: EM13620758

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