A dividend is a distribution of a portion of a company's earnings, determined by the...
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A dividend is a distribution of a portion of a company's earnings, determined by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property. For accounting purposes, cash dividends are a use of cash (financing activity) and reduce retained earnings. Please note, many shareholders hold specific stocks due to the income generation from dividend payments. Historically, when companies announce dividend reductions, stock price tends to fall. Currently, Camping World pays a dividend of $2.50 per year to its shareholders. In total, for fiscal 2022 Camping World paid $105.4 million in dividends to shareholders of its common stock (see statement of cash flows). Your boss, a portfolio manager for Vanguard High Dividend Strategy Fund (HDSF) hands you the Camping World Annual Report on Form 10-K and asks: The markets close in 1 hour and I need you all to assess whether the Camping World dividend is sustainable over the coming two years (Can
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