WHAT ARE DIVIDENDS AND WHY DO THEY MATTER?

When the Company is earning profit and doing well financially, it considers paying dividends to its shareholders. Dividends are basically a part of the earnings of the Company, that the Company gives to its shareholders. It is a way of giving back to the shareholders, as a return for investing in the Company. Only the shareholders of the Company are entitled to receive dividends.

When a shareholder receives a dividend for the shares held by him in a Company, he/she can automatically assume that the Company has enough earnings and is in a good state. When a Company has been giving out dividends year after year, it is a sign of stability and growth in the Company.

Dividends can be paid at any time and as many times as the Company wants, during the year. When the Dividend is declared at the time of the Annual General Meeting of the Company, it is called a “final Dividend” and when a dividend is declared at any other time during the year, it is called an “Interim Dividend”.

For shareholders who are looking to invest in shares with the intention of getting a steady source of income in the form of such dividends, they can do so by studying the Companies that pay regular dividends and purchasing their shares before they are about to declare the dividend. If you are unaware as to which are such companies, then we at Stakeindia have just the right information for you. Stakeindia will provide you with complete guidance for the same.

Stakeindia is the best Share Market teaching Class in Nashik, Maharashtra. Finding out such companies that pay out regular dividends, studying and analyzing their shares, and suggesting the same to our clients/students is a part of the many extensive services that are offered by Stakeindia.

“Stakeindia is the oldest Share Market Teaching Institute in Nashik, Maharashtra”

Kindly get in touch with us at stakeindiainstitute@gmail.com to know more!