What are Dividends Payable?

Dividends payable are the number of dividends payable to shareholders as indicated on the financial statements of the enterprise. One of the main purposes for shareholders to invest in stocks is to obtain dividends. The main basis for a company to issue dividends is its earnings. The number of dividends distributed to shareholders is not only restricted by the company's retention, but also restricted by law. For example, the company's authorized share capital cannot be reduced. ^[1]