7. The New Blue Chips & Dividends in this episode, Josh explains how companies generate and disseminate cashflow from profits to their investors. Through dividends [00:00:19] companies generate cashflow from their operations. And the portion of that cashflow that becomes profits. They have a choice of how they want to disseminate those profits amongst their investors. And when I say their investors, the people that manage the companies. The CEO, the CFO, and many of the employees, they own stock too. [00:00:40] So in many cases, they're trying to decide, okay, we have an excess of cashflow, which you would call profit of a hundred million dollars this year. How do we want to give that out? So dividends are a very popular way for companies to literally take that cash and pay it out to shareholders, proportionate to the amount of the company that had shareholder owns. [00:01:01] So they declare a dividend. Usually quarterly, most investors think about dividends annually an...