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How does it benefit a business to pay stock dividend

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There are reasons why companies pay their shareholder a dividend but who know the real reasons why? I think companies pays you a dividend and they hope that you reinvest that money back into the company so it looks like they are not losing any money. This is one reason that why they push the DRIP program or the dividend reinvestment program hard because they want you to use that dividend payment and put it back into the same company that paid you the dividend. In the video below, I will talk about what’s going on. With companies and dividends

 

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