RE:RE:calculationsAm I wrong on this ?? Definition of dividends is below: A cut to dividends then just preserves cash flow for an company. A cut to dividends then does not help earnings in any way, just helps cashflow..
It is ok to cut if the company needs the cash to make acquisitions, maybe buy back stock or pay down debt, but you don't increase earning unless you use the increased cashflow to do a buy back or make an accreative aquisition.
A cash dividend is money paid to stockholders, normally out of the corporation's current earnings or accumulated profits. ... Dividends are commonly paid in the form of cash distributions to the shareholders on a monthly, quarterly or yearly basis. All dividends are taxable as income to the recipients.
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