Why Some Companies Pay and Others Don’t

Mature companies, like utilities and consumer staples, typically give a portion of their profits as dividends to reward investors. On the other hand, growing companies and those in the field of tech choose to reinvest their profits. This typically comes down to a management strategy of whether to prioritize long term growth or attract income-focused investors.

If a company is in high debt or has volatile profits, they may choose to hold on to their earnings for security. This can mean low dividend returns for investors.

Source: MTrading