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How are dividends calculated?

The calculation of dividends is up to each company’s board of directors. Often dividends are calculated based on how much of the company’s net profit the board wants to distribute to shareholders.

The dividend amount varies based on how much money per share the board decides to pay out to investors.

Dividends can also be paid due to liquidation. In this case, a special dividend may be paid due to the sell-off or spin-off an asset.

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