Now, we know the importance of dividend investing and the need for it in one’s portfolio. Here’s a list of checklists that are needed before starting your investment.
Dividends are payable for the financial year after the final accounts are signed and the amount of distributable profits is available post-approval by the Board of directors of the Company (BOD). The BOD shall decide the rate at which dividends be payable to its shareholders. Dividends are a kind of gratuity (a form of a tip) paid by the management of the company to its shareholders for their continuous support and trust in the company. That’s the power of a long-term investment. Remember that the earnings are excluding your dividend return over the 10 years span. The fruit of capital appreciation is seen mostly in long-term investments. Check out our article on value investing. Hope you’ll like it too. Sure Krishnakanth, Thank you for your kind words. It means a lot. Truly motivates us to work hard. Yes, we understand when you say “bring an issue to light and make it important”. The dividend investing is or has been left out for over a decade now. Not much being spoken out about it. Thank you Manoranjan,
If you own 2,000 shares of ITC limited at a price of Rs.100 per share. Your total investment would amount to Rs.2,00,000/- Over the years, you would have received various stock splits, bonus shares, and dividend income. Apart from such earnings, in the year 2021, you decide to sell all your shares at the current market price (CMP) at Rs.200 per share. You have straight away doubled your initial investment to take home a profit of Rs.2,00,000/- (Initial Investment Rs.2,00,000; the Sale price of your investment at Rs.200 per share for 2,000 shares would amount to Rs.4,00,000 bringing in a profit of Rs.2,00,000). 1. Final dividend – It is the final dividend amount declared by the board of the company payable to the shareholder’s post completion of the annual general meeting. Mostly payable on an annual basis. A final dividend is a great form of passive income stream. Suppose ITC Limited board approves with an interim dividend of Rs.3 per share. You are eligible for a dividend income of Rs.3 per share amounting to total dividend earnings of Rs.3,000. That’s at a 1.5% dividend yield. But, since it is an interim dividend. It is earnings apart from the final dividend an investor can expect. Here it is – Just click on the bar below and proceed with your DEMAT account opening procedures.
2. Dividend income – As explained above, it is the revenue income unlike capital income as in capital appreciation of stocks. The income received as a dividend is repetitive in nature as long as you hold on to the stocks and the management decides to not change its dividend policy. Because a company’s board has no legal obligation to provide a dividend to its shareholders. Some genuinely nice and useful info on this website, But all the listed companies are not from the US? Can you write one to list down all the US dividend-paying companies? Before this financial year, the tax on dividends was as Dividend distribution tax (DDT) wherein, the company and mutual fund providing the dividend had to pay tax on the amount and the individuals need not pay any excess tax over it. Unless the dividend income is above Rs. 10 lakh. Can I just say what a relief to uncover someone that actually knows what they are discussing on the internet. You certainly know how to bring an issue to light and make it important. More people have to read this and understand this side of the story. I can’t believe you aren’t more popular since you surely possess the gift.
Thank you Manoranjan for your kind words. In the meantime. Here’s one of our other article that literally broke our personal record. We got more read time here than anywhere else. Very interesting and detailed article. I hope you keep this updated for coming months. Thank you