If dividends are illustrated in an advertisement, what must the advertisement clearly state about the dividends?

When dividends are illustrated in an advertisement, it is essential for the advertisement to clearly state that they are not guaranteed. This is crucial because dividend declarations can be influenced by a variety of factors including the financial performance of the issuing company, market conditions, and decisions made by the company's board of directors. By indicating that dividends are not guaranteed, the advertisement sets realistic expectations for potential investors regarding the potential return on their investment.

This requirement is in alignment with regulatory guidelines that aim to provide clear and truthful information to consumers, ensuring they are fully informed about the risks associated with investing. Acknowledging that dividends may fluctuate, rather than being assured, protects both the company and the consumer, fostering transparency in financial advertising.