The point is that different companies may have a very different dividend policy. Some companies...
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Accounting
The point is that different companies may have a very different dividend policy. Some companies regularly pay out a lot of their earnings in dividends to investors, which reduces the balance of the Retained Earnings account under the Equity section of the balance sheet, whereas other companies have a policy in which they tend to "hold onto" their cash, do not pay out much in dividends, and will instead use those funds to invest in additional projects. So with that said, here's a tricky question.
As an investor, which type of company would you prefer to invest in? Any thoughts?
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