The activity of paying dividends to shareholders is amongst the ways used by the biggest companies to return to their special shareholders. Usually, a set quantity of money is paid per share to shareholders in terms of the total shares they hold. This money being offered is received through the profit generated by the company. This sum of money could be any value or percentage taken from the net organizational profit and is usually shown as the percentage value of the share’s face value. This is completely the decision of the company as to how much can be the dividend payment and the standard percentage also depends on the market or industry where the company is operating. However, the thing which is universal typically is the presence of organizational shareholders. When an individual purchases the shares in an organization, then he or she becomes part of the company as a shareholder. Shareholders are present in every company but dividends are not offered by all companies to their shareholders.
This helps us in organizing the list of the 10 largest companies not offering dividends and is based on the list compiled by Insider Monkey. Although this is a very usual practice to offer dividends but there are many companies that are not following this practice. Many companies took this decision from the very start of their business. Such companies have transparent in their policies of not doing so even in near future. However, some companies are there which have decided to not offer dividends in the current situation due to the Coronavirus pandemic. So, without delaying any further, let’s begin with the list we have compiled.
Alibaba is the popular e-commerce giant with 122,399 employees working in the company and total revenues are around $73,166 million. This is one of the profitable companies but has a history of not paying dividends. Rather, its shareholders are being rewarded with the increase in prices of shares. The next company on this list is Aegon which is working as a Dutch Insurance company with a total of 23,757 employees and the total revenues are $75,344 million. Due to the recent economic downsizing, the company announced the suspension of dividends. This announcement was made due to the same recommendation which is shared by the European Insurance and Occupational Pensions Authority. Want to learn about other non-dividend-paying companies on the list? Please head to 15 Biggest Companies That Don’t Pay Dividends.