Yes, the directors and owners also benefit. However, when a...

Yes, the directors and owners also benefit.

However, when a dividend is made. The company also have to pay 10% tax on the dividend

the directors and owners also have to pay personal tax on the dividend they receive.

Hence, you can see why they are hesitant and wanting to keep the money within the company rather than distributing it as dividend.

However paying out 20% of net profit is reasonable. It shall be done.. That’s why iam loading up the shares now, anticipating a big fat dividend next year.