In the attached article, what does it mean by the popular asserrtion that dividend increases usually convey good news to investors and dividend cuts convey bad news. https://www.investopedia.com/articles/fundamental/03/102903.asp What are dividends defined in simple terms? and what basic alternatives companies have regarding earnings?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 28MC: What is the impact on the accounting equation when stock is issued, in exchange for assets? A. both...
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In the attached article, what does it mean  by the popular asserrtion that dividend increases usually convey good news to investors and dividend cuts convey bad news. https://www.investopedia.com/articles/fundamental/03/102903.asp

What are dividends defined in simple terms?  and what basic alternatives companies have regarding earnings?

 

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