How do we ensure that we’ll get the dividends on the stocks that we own?

Thanks for asking this question

A business is run to meet some unmet needs. Accordingly, the business operations will generate returns and a portion of them will be profits.

Catering to unmet needs: Business Definition

The profits from the business are utilized for

  1. Business/Capacity Expansion
  2. R&D (If Applicable)
  3. Providing Dividends

This underlines the fact that dividends are one of the outcomes of a profitable business.

Dividends: Fraction of Profits or Surplus

Owing to this, it is best to find businesses that are able to operate profitably and this can be in the product/service or any hybrid domain.

I have written about this previously,

  1. How to Generate High Dividend Returns from Investments?
  2. Which are some good retirement stocks in India in 2022?
  3. Are stocks with a low PE ratio generally safe to buy?
Profits: Key for Business Sustenance

Hope this helps

You can follow my blog or Facebook page on investing for getting insight into other stocks.

Happy Investing!!

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