What is the primary reason companies issue dividends?

"To increase brand visibility" "To attract investors and signal financial health" "To reduce tax liabilities" "To comply with regulatory requirements"

How do dividend payouts generally affect a company's stock price in the short term?

"Stock prices tend to decline after the dividend declaration date" "Stock prices usually increase leading up to the ex-dividend date" "Dividend payouts have no significant impact on short-term stock prices" "Stock prices remain stable regardless of dividend announcements"

What type of companies are generally known for establishing a reputation for consistent and substantial dividend payments?

"Small and mid-cap companies" "Startups and early-stage businesses" "Large-cap and blue-chip companies" "Companies with fluctuating annual profits"

What is the key difference between cash dividends and stock dividends?

"Cash dividends are paid annually, while stock dividends are paid quarterly" "Cash dividends are taxable, while stock dividends are not" "Cash dividends involve direct monetary payments, while stock dividends distribute additional shares" "Cash dividends are favored by investors, while stock dividends are less desirable"

Why might a company choose to retain its earnings instead of distributing dividends?

"To signal financial instability to investors" "To comply with government regulations" "To reinvest profits for business development and growth" "To avoid tax implications associated with dividend payouts"