What is Mean by Dividend in Share Market ?

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You must have heard the name of Dividend in the stock market. So in this article I will tell you guys, What is the meaning by Dividend in Share market ? And why does Company Dividend give ? So read this article completely.

Let’s start today’s great article.

The company gives a part of its Net Profit to its Shareholder, that is, those who have shares of that company. It is called “Dividend“. Let us understand this dividend a little more closely.

Whatever profit the company makes, after making tax and all other adjustments, the one who keeps the net profit of the company is divided equally among the shareholders of the company. And the person who has the number of shares, that person gets Dividend in proportion to that.

To explain you better, let’s take an example.

Board of Directors

suppose,
You have invested in an Abc company. You have taken 100 shares of that company. On which Abc Company gave $ 5 per Share Dividend, it means you will get total 100×5= $ 500.

Whether to pay dividend or not, it completely depends on the Board of Directors of the company. If the Board of Directors wants, then only the company announces to pay the dividend.

Most of the companies which are new in the market, they increase the business more by putting their profit back in the business itself, such company gives very little dividend, or does not give.

In this way, you can earn a lot of money by investing in the company that gives your money.

Dividend

● Attention :-

  • Dividend has nothing to do with current price.
  • You get dividend from the company only when you have shares of that company.
  • You can make a lot of money by investing in dividend paying shares.

So Friends, I hope you can Understand, Dividend meaning…

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