Does company profit have influence on your dividend?

I'm not sure I understand the question. Please provide further direction, if I am off base.

Not all companies pay dividends, even if they are profitable. Some companies pay dividends, even though they are losing money.

If you can find a *well run* company, they will typically pay a dividend that varies with profit. They will make sure they pay a little less than they are able, so the dividend remains stable. It isn't good for the valuation to change the dividend downward so they tend to be a bit conservative.

if a company is in a growth phase, they probably won't pay a dividend at all. If they have to pay 8~10% interest on borrowed money, and they need a lot of money for expansion, they may determine they can earn more than 8~10% by expanding and so they are better off, and so are you, by them using the profit to expand the business.

Very often, companies don't make a lot of profit because it is syphoned by executives. If you look at executive compensation in a year like 2020, when times were really tough, and they paid themselves record bonuses and compensation, that is a sign of an entitled executive, IMO. I look for this in companies I buy.

I hope this helps and welcome to Stockaholics!

 

I'm pleased to meet you, Aspirant.

Yes, I look closely at profit before I buy a company. There are a series of things I look for, including that.

As for a specific recommendation, I apologize for being unable to provide anything along this line.

 

Dividends do not affect net income on the company's financial statement. Retained earnings--monies earned that the company keeps improving operations--are the source for paying dividends.