Listen to a Business English Dialogue About Unpaid dividend
Madelyn: Hi Eliana, have you heard about unpaid dividends in business and finance?
Eliana: Yes, I think it’s when a company declares a dividend but doesn’t pay it out to shareholders.
Madelyn: That’s correct. Unpaid dividends can occur for various reasons, such as insufficient funds or administrative errors.
Eliana: Can shareholders do anything about unpaid dividends?
Madelyn: Shareholders can inquire with the company about the unpaid dividends and may have legal recourse if the company fails to fulfill its dividend obligations.
Eliana: What happens to unpaid dividends over time?
Madelyn: Unpaid dividends may accumulate and be paid out in the future, or the company may declare them as lost and not payable.
Eliana: Are there any consequences for companies that have unpaid dividends?
Madelyn: Companies with unpaid dividends may face reputational damage and a loss of investor confidence, which could impact their stock price.
Eliana: How can investors avoid investing in companies with a history of unpaid dividends?
Madelyn: Investors can research a company’s dividend payment history and financial health before investing to assess the risk of unpaid dividends.
Eliana: Thanks for explaining, Madelyn. Unpaid dividends seem like an important consideration for investors.
Madelyn: No problem, Eliana. It’s essential for investors to understand the potential risks associated with dividend payments when making investment decisions.