Dividends

A dividend is a portion of a company's profits distributed to its shareholders. It can be paid in cash or additional shares.

Only shareholders who hold shares as of the record date set by the company are eligible for dividends.

Record Date: The date on which a shareholder must be on the company's books to receive a dividend. Ex-Dividend Date: Typically one business day before the record date; if you buy shares on or after this date, you will not receive the dividend.

Dividend stocks are shares of companies that regularly distribute a portion of their profits to shareholders in the form of dividends. These payments provide investors with a steady income stream in addition to potential capital appreciation.

Yes, dividend stocks can be a good investment in India, especially for conservative investors looking for regular income and relatively lower risk. They are ideal for long-term wealth building and passive income.

Dividends are taxable in the hands of investors as per their income tax slab rate. Companies deduct TDS (Tax Deducted at Source) at 10% if the dividend payment exceeds Rs 5,000 in a financial year.

Most Indian companies pay dividends annually or semi-annually. However, some blue-chip companies may offer interim dividends quarterly or biannually.

Dividends are paid directly to the shareholder’s bank account registered with their demat account or sent via cheque.

Yes, but not automatically. You can manually reinvest dividends by buying more shares.

Interim Dividend: Declared during the financial year before final results. Final Dividend: Declared after the company’s annual financials are approved. Special Dividend: A one-time payment due to extraordinary profits.

You can check your Bank account statement, Demat account statement, Registrar & Transfer Agent (RTA) updates (e.g., KFintech, Link Intime)

You should contact the company’s RTA or your broker. Unclaimed dividends can be claimed for up to 7 years, after which they are transferred to the Investor Education and Protection Fund (IEPF).

You must submit a claim with necessary documents to IEPF through the company. This involves Form IEPF-5 and physical submission to the company’s nodal officer.

A dividend yield between 3% and 6% is considered good in the Indian stock market. Some public sector companies may offer yields as high as 8–10%.

Yes, it's possible to live off dividend income if you have a large enough investment portfolio. However, this requires careful planning, diversification, and reinvestment over time to grow your income.

You can use financial websites like Rupeetalks.com, Screener.in, or NSE India to filter stocks by dividend yield. Look for companies with consistent dividend history, strong fundamentals, and a sustainable payout ratio.

No, not all companies pay dividends. Startups and high-growth companies often reinvest their profits back into the business instead of distributing dividends.