But it may be way more profitable. Because profitability is not the amount of dollars earned, but the ratio of earned dollars per invested dollar.<p>Also, it makes sense for most healthy companies to borrow money and pay out a stock dividend at the same time. You need to pay interest on the borrowed money. But that interest can be deduced from the taxes you&#x27;d have to pay otherwise. The trick is to find the correct ratio.<p>The earnings to invest ratio goes up and everyone is happy.