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if a company pays dividends on a stock, does that mean that the stock h…

Question

if a company pays dividends on a stock, does that mean that the stock has appreciated in value? why or why not?
yes, the payment of dividends indicates that a stocks value has increased.
no, the payment of dividends indicates that a company has earned profits.
yes, the payment of dividends indicates that a companys assets have grown.
no, the payment of dividends indicates that a company can repay investors.

Explanation:

Brief Explanations

Dividends are a portion of a company's earnings distributed to shareholders. Paying dividends means the company has made profits, not necessarily that the stock has appreciated in value. Stock value appreciation depends on various factors like market - perception of future growth, not just dividend payments.

Answer:

B. No, the payment of dividends indicates that a company has earned profits.