WHAT IS DIVIDEND? | EXPLAINED | HINDI

HELLO FRIENDS,

Today we'll learn about Dividend. So, the beginners who just started investing in share market or stock market most of them don't know WHAT IS DIVIDEND?

(TO UNDERSTAND WHAT IS DIVIDEND IN HINDI WATCH FULL VIDEO)

The Simple definition of Dividend:

Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form. A company's dividend is decided by its board of directors and it requires the shareholders' approval.

WHAT IS DIVIDEND?

Dividend is the part of profit given as a reward to each shareholders of the company.

Dividend is issued when the company makes profit.

There are many companies and firms which do not pays dividend to its shareholders after making profit, rather than paying and distributing the profit as dividend the companies use that profit for Growth and Expansion of the business. And this helps in companies capital appreciation.

At the time of issue of Dividend first it is paid to Preference Shareholders and then to the Equity or common Shareholders.

Dividend can be paid or issued in the form of CASH or STOCKS (paying dividend in the form of stock is also known as STOCK DIVIDEND)

High Dividend paying companies attracts more investors to invest in that particular company.

COMPANIES WHICH PAYS HIGH DIVIDEND IN INDIA.

POWER GRID.

COAL INDIA.

HPCL.

TATA STEEL.

INDIABULLS HSG.

BPCL.

HINDUSTAN ZINC.

INFOSYS.

ONGC.

ITC LTD.

HAPPY INVESTING.

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$\begin{aligned} &\text{DPS} = \frac { \text{D} - \text{SD} }{ \text{S} } \\ &\textbf{where:} \\ &\text{D} = \text{sum of dividends over a period (usually} \\ &\text{a quarter or year)} \\ &\text{SD} = \text{special, one-time dividends in the period} \\ &\text{S} = \text{ordinary shares outstanding for the period} \\ \end{aligned}$