Do companies keep paying dividend as long as you own a share?

Let's say I invest $100 in a company and let's suppose the APY is a steady 10%. Does that mean that as long as the company keeps making profit, they will pay me $10 EVERY year? And i dont have to keep investing $100 to get that $10 every year?

Update:

yes, I understand things can change. What i'm asking if as long as I still own a share, do the company still pay me, say 5 years later, if they decide to pay? 

3 Answers

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  • Erik
    Lv 7
    1 month ago
    Favorite Answer

    If they decide to keep paying a dividend, and you still own the stock, yes.  They could increase the dividend, decrease it, or just stop paying one.

  • Anonymous
    1 month ago

    Unless they halt the dividend and many have recently.  Profits are not a requirement but not many firms wiill pay out for years on end without them.

    I own one tiny little stock that does.  They do that rather than a buyback or a larger one time distribution.  So earnings might be slightly less but I am confident they will pay it for years to come.

    The board decides every quarter and they can change their mind.  

    For this reason, some prefer what are called Dividend Aristocrats....Companies that have increased their dividend payouts for 25 consecutive years or more.

    There are no quality diviends that yield 10% year in year out without risk.

    Generally, the higher the yield the greater the risk.

  • Anonymous
    1 month ago

    The board of directors determines if there will be a dividend and how much it will be.   There are no guarantees.  Things can change.

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