More About Dividend Income
Is a shareholder one of your greatest desire is to ensure that you are getting dividend income full-stop dividend income is income that shareholders are given after a company has reported profits and it will want to share the money with the shareholders. You will find that if a company has been managing its financial resources properly they will of course make a profit if it was a good year and shareholders will benefit from that. Even that sometimes our company may not have made a profit and this means that those particular ear shareholders are not going to get dividend income. And the individual has the choice as a shareholder to take the dividend income or too invested back into the company and get more shares. Whatever the decision and individual take it is important for them to make sure that it is always an informed decision. As a shareholder of a particular company, it is also your responsibility to ensure that you keep on finding out how the company is being run so that by the time you guys are going for the annual general meeting you know exactly what has been happening in the company. Sometimes you find that we have shareholders that are not really concerned about what is happening in the company and when they go for the annual general meeting they are gotten by a very huge shock because the company was not managed properly and they have no dividends that year.
As a shareholder of a particular company, it is also important for you to ensure that you asked the company to give you a detailed report. This is a very good way of shareholders ensuring that the company has been when the way it is supposed to run. Sometimes you find that the CEO is not very concerned about making money for the shareholders. Sometimes you find that such a person is concerned about the daily operations of the company and they end up spending more on irrelevant issues. Sometimes we have something that is called creative accounting. This is something that most of the managers of companies do so that it can be seen that they are effectively managing a company who we are as they are siphoning its money. As shareholders, it is your responsibility to ensure that you are really looking out for audited reports and that you are encouraging the CO2 to get an internal and external auditor. The Audit aspect of our company is a really important aspect because it will help you see that a company has been managed the way it is supposed to be managed. This is because dividend income cannot be received by shareholders if the company was not operated properly. Dividend income is only restricted when the company has made losses. Otherwise, when the company has made a profit it is very much ok for them to be given these dividends. Shareholders should also be concerned about the company and she does not demand dividends if the company did not make a profit.