It depends on the company. Well established companies should be giving healthy dividends to their shareholders. Dividends are a way of the company to share the profits and a way for the shareholders to keep a close check on the company's officers and operations.

Reinvesting profits into capital equipment is a good idea for growing companies. Often these companies are not comfortable with their long term outlooks hesitating at the idea of beginning a dividend program especially if they predict tough times. But once declared, cash rich coffers should be spread among the average investor.

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