Educational institutions and pension funds that do not have to pay income tax.
There are also individuals whose dividend income is less than the $50 exemption figure, although the total amount of shares held by this group appears to be quite small. For these special groups, the equilibrium equation will be different.
However, for most shareholders, regardless of size, there is no escaping this reality of dividends. If they save any of their income instead of spending it, and invest it in the right common stocks, profits will increase greatly when the company's management reinvests them. retained earnings compared to the profits they would achieve if the company paid dividends and had to reinvest themselves.
There are also individuals whose dividend income is less than the $50 exemption figure, although the total amount of shares held by this group appears to be quite small. For these special groups, the equilibrium equation will be different.
However, for most shareholders, regardless of size, there is no escaping this reality of dividends. If they save any of their income instead of spending it, and invest it in the right common stocks, profits will increase greatly when the company's management reinvests them. retained earnings compared to the profits they would achieve if the company paid dividends and had to reinvest themselves.
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