Dividend Policy: why firms don't pay out all their earnings as dividends

This video highlights some of the factors influencing firms' dividend policies and explains why firms typically do not pay out all of their earnings as dividends.
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[@janardhan2941]

Thank u, u helped me in 2nd yr and now u r helping me in 3rd year

[@user-zq1lb3lx4m]

are you in year 6 now?

[@ashrafkotbofficial]

Perfect video and clear explanations, thank you.

[@hailun374]

I read in a financial book that companies are not allowed to keep more than 60% of their profits for more than a specific amount of time and they are obligated by law to reinvest it in new investment programmes (at least in my country) .. So that's a fourth reason why they don't keep the profits as dividends only :)

[@sobriquet5016]

Which country is this that you refer to? Never heard of reinvestment as being a legal obligation. Sounds like this could only be the policy of an overly solicitous government.

[@NN-kf7qo]

That might be REITs you are talking about, they're regulated by law in this matter

[@faithfadzaishayanewako9376]

Thank you

[@MohamedAbdo-xs7bf]

It would be better to illustrate the financial idioms, like equity, and dividends, for non-commercial viewers. I barely understand what you are illustrating. Thanks for your effort!

[@preziosa2461]

Watch previous videos for that