If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not? Yes, the payment of dividends indicates that a stock’s value has increased. No, the payment of dividends indicates that a company has earned profits. Yes, the payment of dividends indicates that a company’s assets have grown. No, the payment of dividends indicates that a company can repay investors.

Payment of dividends that the company has earned or gained profits and not the value appreciation of its tocks. So, option B is the correct answer.

Do dividends affect the stock value?

Dividends are profits distributed by corporations to their stockholders. Dividend payments convey information about a company's prospects for the future and performance. Its willingness and ability to pay consistent dividends throughout time demonstrates its financial stability.

So, just because a corporation pays dividends on its stock doesn't mean the stock has increased in value.

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