Dividends

                                          DIVIDENDS

What is Dividend?

An organization or company share a part of their profit to the shareholders called dividenddividend. The Dividend will be provided based on the face value of the organization. For example, assume the price of the stock is 100 and there is an announcement from the organization that 30% of dividend will be provided to the shareholders and don’t think they will provide 30 rupees per share. If the face value of the stock you bought is 10 rupees, then you will be getting only 3 rupees as dividend per share. So dividend is calculated based on the face value of the share.

Highest Dividend Yield Stocks?

Now the bank sector provides more dividends to the shareholders. Canara bank, Indian bank and Andhra bank provide more dividends to the shareholders. You can include these bank stocks in your portfolio. Now the bank stocks seem to be less as of price wise. This is because the outstanding credit of the banks seems to be more and according to us this is not a big issue. As of now if you hold bank stocks you will not only get the dividend but there is also a chance of these stock prices improve in future and make a profit.

Make a Dividend Yield Portfolio?

It will be wise if you include the stocks that will provide more dividends in your portfolio. If you include more dividends providing stocks in your portfolio than the value of your portfolio will also increase. Having these types of dividends providing shares you can earn a permanent income.

Sector wise Dividend Stocks?

In your portfolio do not include the stocks of the same sector. Try to include two or three sector stocks that provide good dividend to the shareholders. Please contact us in identifying the stocks that provide more dividends.

What is Equalizing Dividend?

Sometimes the directors of the organization change the process in providing the dividend to the shareholders and due to this there is a chance of loss to the shareholders and to neutralize this company or organization will provide extra dividend called equalizing dividend.

What is Dividend Declaration Date?

The company directors will announce the date to the shareholders about when the next dividend will be provided which is called dividend declaration date. Dividend amount, X dividend date and payment date information’s will be included dividend declaration date. If a company or organization announces that they will provide a dividend to the shareholders then as per law it should definitely provide a dividend to the shareholders.

Explains of Unpaid Dividend?

The dividend which is not shared with the shareholders after the announcement is known as unpaid dividend. The period between the dividend record date and payment date is called as unpaid dividend.

What is Payment Date?

The date in which the dividend amount is shared with the shareholders is known as Payment date.

Explains of Forward Dividend Yield?

The price you get when dividing the dividend amount that a company provides to the shareholders in future against the current price of that stock is called as the forward dividend yield. Calculating the last twelve month’s dividend provided by the company or organization against the current price of the stock is known as trailing dividend yield. This is just opposite to forward dividend yield. If a company or organization does not announce their forward dividend yield then trailing dividend yield will be a good one to know about the stock information.

What is First Preferred Stock?

First preferred stockholders do not have the voting rights. Preference will be given to the first preferred stockholders when the company or organization provides dividends and the assets of the organization or company when it is closed.

What is the Ex-Date?

During Ex-Date the shareholders who sell their stock will get the announced dividend. This will be two days before the record date.

Updated: March 31, 2015 — 12:23 pm
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