Dividend Paying Stocks | What is Dividend & Share Dividend

What is a dividend in the share market?

Dividends are payments from corporate earnings to company shareholders. Dividends are one way for you to receive a return from owned shares. You can think of them as a reward for investing your money with a company.

Companies that earn a profit may (after paying their creditors) choose to reinvest that profit into business, pay it to shareholders, repurchase shares or pay off their debts. When the payment is made to shareholders, it is known as a dividend. These payments are usually made in cash which is known as a cash dividend, but in some cases, they may choose to make these payouts in the form of stocks too which is known as a stock dividend.

The dividend yield is often an essential factor for investors when choosing which stocks to invest in. The dividend yield is calculated on the current share price.

Dividend Offers By Company In 2020 - 2021 With Offer Price

Cochin Shipyard Dividend 14/01/2021 Rs. 9/share
TCS Dividend 16/01/2021 Rs. /share
HCL Dividend 23/01/2021 Rs. /share
RITES Dividend 111/01/2021 Rs. 5/share
GDL Dividend 06/01/2021 Rs. 2/share
RCF Dividend 23/12/2020 Rs. 2.84/share
HAL Dividend 19/12/2020 Rs. 15/share
Majesco Dividend 25/12/2020 Rs. 974/share
Power Grid Dividend 19/12/2020 Rs. 5/share
Ambuja Cement Dividend 06/11/2020 Rs. 17/share
Crompton Greaves Dividend 03/11/2020 Rs. 3/share
Hindustan Zinc Dividend 27/10/2020 Rs. 21.30/share
Hindustan Unilever Dividend 28/10/2020 Rs. 14/share
Colgate Dividend 29/10/2020 Rs. 18/share
LTI Dividend 27/10/2020 Rs. 15/share
Vedanta Dividend 31/10/2020 Rs. 9.50/share
Nestle Dividend 29/10/2020 Rs. 135/share
Asian Paints Dividend 28/10/2020 Rs. 3.35/share
Tech Mahindra Dividend 29/10/2020 Rs. 15/share

What is a Stock Dividend?

A stock dividend can be described as an increase in the number of shares of a company; the new shares are given to existing shareholders. These shares are paid on a pro-rata basis to the existing shareholders. These payments are generally made in fractions and are paid per share.

How do Stock Dividends work?

A company may choose to pay stock dividends for multiple reasons; the first being they do not want to reduce the company’s cash balance or wish to reward the shareholders despite having insufficient cash reserves. Stock dividend payout may reduce the share price, which may prompt increased trading and improve liquidity. Lower share prices increase liquidity as there is a more significant likelihood of someone selling a share that is priced at Rs. 100 rather than selling one that may be priced at Rs 5000.

For investors who are looking at getting immediate cash flows, cash dividends may seem like a better option. On the other hand, stock dividends offer a choice to the investor. They may choose to remain invested in the company with larger shares in the hope that the company will perform better with the reinvested funds or they may decide to sell some new shares and generate cash flows for themselves.

Post a comment