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The value of potential #finance

Some companies pay their shareholder’s high dividends as a way of keeping investors but when profits don’t warrant it, they should cut dividends. The potential to pay dividends is enough to satisfy shareholders. After all, the profits instead of going to dividends go to reinvestment which in turn increased the company’s value and profits. This leads to the potential to pay higher dividends. We often miss the value of potential.

the value of potential

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