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Apr 3, 2021

[Answer] When an investor makes money from dividends, where is it coming from?

Step 1 : Introduction to the question "When an investor makes money from dividends, where is it coming from?"



...Dividends are the distribution of part of a company’s earnings to its shareholders as a reward for investing. Typically, the board of directors will determine this distribution, from the timing to how much is given. Dividends are paid in cash, or in additional shares of stock.




Step 2 : Answer to the question "When an investor makes money from dividends, where is it coming from?"



Part of the company’s earnings:


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