Can a company pay dividends even if it has a loss?

Can a company pay dividends even if it has a loss?

Yes, if the company has enough cash reserves, it can pay dividends even during a loss-making year.
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    • Who decides if a company pays dividends?

      The company’s board of directors decides whether to pay dividends during the Annual General Meeting (AGM).
    • Do companies pay dividends every year?

      No, paying dividends is not mandatory. Companies may choose to reinvest profits into the business for growth instead of distributing them as dividends.
    • What are dividends?

      Dividends are a portion of a company’s profits shared with its shareholders. They are paid on a per-share basis.
    • How to check my Profit & loss (P&L) reports?

      You can easily get the P&L report through the trading app—just watch the video or follow the steps provided. • Log in to your Swastika account. • Click on the three lines in the top left corner. • Selecting Annual Profit & Loss report and setting the ...
    • How are dividends paid?

      Dividends are directly credited to your bank account linked to your Demat account.