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What is a dividend in the share market?

Know all about dividends,Best dividend-paying companies. Dividend meaning.

    Meaning of Dividend

    The meaning of Dividend is – Dividend, and thus Dividend means – Share of profit or share in profit.

    In today's topic, we will know what is a dividend? How can this work? And what are the benefits of dividends? Let's talk first

    what is dividend in share market?

     The dividend is a part of a company's NET PROFIT (net profit) given by a company to its shareholder, the net profit left after tax, and all other types of ADJUSTMENT of whatever profit the company has.  Net Profit) is divided equally among the shareholder of the company, and the person who owns the shares gets the dividend benefit in the same proportion, like - if I have 100 shares of TCS,  On which TCS gave a dividend of Rs. 5 per share, this means I will get the total dividend: 100 x 5 = Rs. 500, it is a matter of considering whether to pay the dividend or not depends entirely on the board of directors of the company.  Is, if the Board of Directors even if the company declares the dividend. 

    Dividend

      The decision to pay a dividend is made by the Board of Directors at the company's Annual General Meeting (AGM), - The thing to be decided is that most of the companies who are new to the market, or who run on the policy to make a profit To increase the business further by putting it back into the business itself, such a company gives little or no dividend, take special care that the dividend is always given at the FACE VALUE of the share, and its calculation is also at FACE VALUE. 

    It is done, like the current market price of a stock is - 500 rupees, but if the face value of that stock is Rs 10, and the company decides to give 100% dividend, then it means the face value of the stock is Rs 10. , Then 100% dividend means a dividend of Rs. 10 per share.


      So this means the face value of the share is Rs.10, then 100% dividend means a dividend of Rs.10 per share, be aware that the dividend has nothing to do with CURRENT MARKET PRICE.


    What is a dividend?

    The dividend is a part of the company's NET PROFIT (net profit) paid by a company to its shareholders.


    Whatever profit the company makes, the net profit (net profit) left after tax and all other adjustments is divided equally among the shareholders of the company, and the person who has the number of shares, that person receives a dividend in the same proportion.


    For example, if I have 100 shares of TCS, on which TCS paid a dividend of Rs.5 per share, it means I will get a total dividend: 100 X 5 = Rs.500.


    The decision to give Dividend

    It is worth noting that whether to pay dividend or not, it completely depends on the board of directors of the company if the board of directors wants then only then the company announces to give dividend.


    The decision to pay dividend is made by the Board of Directors at the Annual General Meeting (AGM) of the company.


    The point to note is that – most of the companies which are new in the market, or who follow the policy that they will increase the business further by putting the profit back in the business itself, such company gives very little dividend, or does not give. is.

    Dividend

    Calculation of Dividend

    Keep in mind that dividend is always paid on the FACE VALUE of the stock, and its calculation is also done on FACE VALUE.


    For example, the current market price of a stock is Rs 500.


    But if the face value of that stock is Rs 10, and the company decides to pay 100% dividend.


    So it means the face value of the share is Rs 10, so 100% dividend means a dividend of Rs 10 will be available per share.


    Keep in mind that the dividend has nothing to do with the current market price.


    In which ACCOUNT the DIVIDEND is given to the investor.


    Dividend is credited to that bank account, which is linked to our debit account, in which the shareholdings are lying.


    Like if my ICICI Bank account is linked with the DEMAT ACCOUNT, and TCS shares are credited in this DEMAT ACCOUNT.


    And if TCS, the company declares to pay the dividend, then I will get the dividend directly credited to my ICICI Bank account.


    How many types of Dividend are there ?

    INTERIM DIVIDEND 

    When the company declares quarterly dividend within the financial year itself, it is called INTERIM DIVIDEND.


    FINAL DIVIDEND

    When the company declares annual dividend at the end of the financial year, it is called FINAL DIVIDEND.


    Dividend Stocks

    Best dividend paying companies in India

    • Bajaj Auto
    • GAIL
    • Hindustan Zinc
    • SJVN
    • ITC
    • Hero Motocorp

    What is Dividend Yield?

    Important Dividend Dates.


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