Have divident reinvestment plan and stock went down do I get a 1099 form.?

Question

My daughter has dividend reinvestment plan. If the stock goes down then is it correct to assume that no dividends were paid and so no 1099 form at the end of the year?

Answer 1

There's no correlation between the price of a stock and the dividend.

Dividends are paid based on the company's earnings and not the price of their stock.   Companies that pay dividends and are not loosing money will continue to pay their dividend regardless of the price of their stock

If a company pays you dividend, you will receive a 1099

Answer 2

no it is not correct. just because the stock price went down down not mean that the business had no earnings.it could have paid dividends and a 1099 could be issued.