In the last few days, many IT and auto companies have announced their quarterly results. These companies have also announced good results as well as giving dividends. In such a situation, investors have a chance to earn double.
For the past few days, one word has been in considerable discussion. He is a dividend. If you try to understand it in easy language, then the company makes a profit. She shares some of it with her shareholders (share-buyers). It is called a dividend. Experts tell that the money the company has taken from you. She does business with it and shares her share of the profits with you. But it is not mandatory for the company to give dividend to the shareholders. If a company is paying dividend, then there is no guarantee that it will give it even further. Whether or not to pay dividend depends on the board of directors of the company.
What is dividend and dividend yield
The dividend paid to the investors in the company’s total profits is called dividend. The dividend is given per share. That is, the more shares an investor has, the higher the dividend amount will be.
Investing in a company with a consistently superior dividend record is considered safe.
Dividend Yield – Dividend Yield gives a safe return on the stock. The higher the dividend yield, the safer the investment will be. Dividend Yield = Dividend X100 / Share Price per share, only companies with Dividend Yield greater than 4% of the dividend. Better on the basis
Now the question arises here that who decides how much dividend will be received?
Asif Iqbal, head of research, Escort Security, says that how much dividend to pay, it is decided in the company’s annual meeting.
This is called the final dividend. If the company pays dividend in the middle of the financial year, then it is called interim dividend or interim dividend. Interim dividend is given when the company earns profit in the first half of a financial year.
Which companies have now announced dividend payout?
The country’s largest IT company TCS has announced a dividend of Rs 15 per share. At the same time, Tech Mahindra will give a dividend of Rs 30 per share. Wipro has announced a dividend of Rs 1 per share.
HCL Tech has decided to give two dividends. There is a special dividend. It is 6 rupees per share. At the same time, there is an interim dividend of Rs 10 per share. ICICI Bank has announced a dividend of Rs 2 per share.
Get double profits
Experts say that along with dividends, good returns can be expected in these stocks going forward. Vivek Mittal, Head of VM Portfolio, says that investing in stocks with good dividend yield is beneficial. On one hand they perform well and secondly they get the benefit of dividend.
Remember these important things
Record Date- A record date is also announced with the announcement of dividends. This is the date on which the company sees it in its record books, which investors of the company’s stock are with them right now. That is, the dividend money is transferred to the account of those who have shares till the record date.
How to invest in the stock market
It is necessary to have a demat and a trading account for trading in the stock market. Demat account is an account in which shares are in dematerialized form. You can trade intraday in trading account
Important things for Demat – To open a Demat account, it is necessary to have an account with a bank. It is also necessary to have a bank checkbook or online facility. A PAN card is required to open a demat. It is also necessary to have proof of residential address. The broking company charges some fees for opening an account. Fee is yearly or check it outright
Where to open demat?
Open an account in a broking company with a good track record. Make sure to compare the company’s broking charges with other companies. There are two types of broking charges. Intraday Charges and Delivery Charges. Before signing the demat kit, please read its key terms. Take full information from the agent if the terms are not clear
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