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Dinakar

Nobody • 1y

What are dividends? Dividends are a sum of money that is paid by the company to their share holders out of it's profits. Tax on dividends - Dividends are part of our taxable income according to our tax bracket. Earlier, the companies used to pay DDT, before it was distributed. But now shareholders pay it according to their respective tax bracket. Dividend yield = Dividend amount/Current stock price × 100 How to get dividends? First the company declares that they are distributing dividends to their share holders, this date is the dividend declaration date. You must have bought the shares before the ex-dividend date. The ex-dividend date will be declared by the company so keep an eye out for it. Then comes the record date which will be approximately 30-40 days of dividend declaration. The company's registrar checks who all are eligible to receive dividends. Then finally comes the dividend payout date, we'll recieve the dividend on our bank a/c which is linked to our demat a/c.

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