Accounting Journal

Accounting Journal

The company makes a loss – can a dividend be paid?

Asif Patel's avatar
Asif Patel
Mar 11, 2025
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Anyone who invests in a company is taking a chance, hoping that the directors, as representatives of the company, will use the money to increase the company’s profit. In return for taking this chance, a shareholder receives ‘payback’ usually as a share in the distribution of profits in the form of a dividend, however. payment is not automatic.

For a divi…

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