Dividend payments by companies may not affect shareholder value, but they still choose to pay dividends to signal future earnings. A study on 24 companies at the Lahore Stock Exchange found that investors did not benefit from dividend announcements. In fact, shareholders actually lost value from one month before the announcement to seven days after the ex-dividend date. This supports the idea that dividends may not impact stock prices significantly. The reasons why companies pay dividends and the high turnover of shares on dividend announcements remain unclear.