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Explained in plain English

Why do companies pay dividends?

Dividends are a portion of a company's profits paid out to its shareholders. Next is considering a special one-off dividend. Companies pay dividends as a way to reward investors for owning their stock, sharing the company's success. It can make a stock more attractive, especially for those seeking regular income from their investments.

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Next raises profit target to £1.24bn, plans £169m payout.

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