Can dividends be declared from unrealized gains?

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1226243

2026-07-13 12:00

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No, dividends cannot be declared from unrealized gains. Dividends are paid out of a company's retained earnings, which are derived from actual profits that have been realized. Unrealized gains represent potential profits on investments that have not yet been sold or converted into cash, so they do not contribute to the company's available cash flow for dividend distribution.

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