France urges companies to not pay dividends

France stepped up Monday its calls for firms using state aid to keep afloat during the coronavirus crisis to not pay out dividends to shareholders this year.
"I call on all companies who are putting staff on partial unemployment, that is having their wages paid by the state, to show the greatest restraint possible in terms of paying dividends," Finance Minister Bruno Le Maire said on BFMTV.
"Even better to set an example and not pay dividends," he added.
"We also won't tolerate companies buying back shares... share buybacks are not compatible with support from the state treasury," said Le Maire.
Companies that make a profit usually return part of that to their shareholders in the form of a dividend. A firm buying back its shares is another way of returning profits to shareholders.