Some Companies Earn So Much Cash, They're Giving It Away to Stock Owners
Would you rather someone gave you a small amount of money now or a larger sum in the future? That's a question to ponder when deciding whether to invest in a company. But what if there was a middle ground -- a way to enjoy some money now, or in the near future, and get your big payout later? There is, and below, we'll look at how you can cash in on it.
Sometimes, companies make too much money -- yes, really. There's only so much they can put back into their business, and sometimes, they end up with money left over. When this happens, some businesses choose to give the extra cash to their shareholders in the form of a dividend. This also helps make the company more attractive to investors.
Source Fool.com
