How can a company's earnings growth impact investor returns?

A company's earnings growth can significantly impact investor returns. When a company's earnings grow, it indicates that the company is profitable. This profitability is often evaluated in terms of earnings per share (EPS), which is a crucial indicator of a company's financial health. As earnings grow, the company's stock price may increase, leading to higher returns for investors. Additionally, a company with growing earnings may also be able to pay higher dividends to its shareholders, further enhancing investor returns.

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"Continued earnings growth will be a good indication that the company is profitable, because it's the money a company makes. It is often evaluated in terms of earnings per share (EPS), which is the most important indicator of a company's financial health. In the end, growing earnings are a good indication that a company is on the right path to providing a solid return for investors."

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