Netflix Dividend: Will They Ever Pay?

The decision whether a company should pay a dividend depends on many factors.

Companies don’t decide to begin paying a dividend in a vacuum. There are many issues to be considered before returning capital to shareholders with a dividend.

Companies that are still in the early growth phase of their development often choose to reinvest excess capital back into their business instead of returning it to shareholders.

Business Overview

With more than 200 million members spread out over more than 190 countries, Netflix is a media giant.

While Netflix does offer a wide variety of second-run television programming and movies, the company also produces its own original content.

The company began with humble beginnings, by mailing out DVDs to subscribers. In recent years, its focus has shifted to streaming services over the Internet.

Reasons For Paying A Dividend

Many companies pay dividends as they are an important part of their capital allocation programs.

Some companies, such as Dividend Aristocrats like Coca-Cola (KO) and Johnson & Johnson (JNJ), have increased their dividends for several consecutive decades. In fact, both Coca-Cola and J&J are members of the exclusive Dividend Kings list.

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