What is Dividend, Types and How it Works (Dividend In Hindi)

Meaning in Hindi: Share Market There are mainly two ways to earn money, one is by buying and selling shares and the other is Dividend, about which very few investors know. If you also invest in the stock market, then you should know every single information about Dividend. For your information, let us tell you that many experienced investors earn lakhs of rupees every month through dividend.

In today’s article, we have given you complete information about what is Dividend, we have covered every topic related to Dividend in this article which is important for you and we sincerely hope that if you read this article till the end then You won’t need to go to any other blog to search about dividends.

So let’s start without wasting time to know more about this article of today dividend what Would Is In Hindi Expansion From,

What is Dividend

Dividend, which is called Dividend in Hindi meaning, is given by the companies to their share There is some part of profits or profits to be given to the holders. That is, when companies give some percentage of profit to their shareholders, it is called Dividend or Dividend. The rate of dividend is decided by the management of the company.

What is Dividend, Types and How it Works (Dividend Kya Hai In Hindi)

The company gives dividend to the shareholders in the form of reward for investing in the company and showing confidence in the company. Dividend is paid on the fixed amount of the share. Companies distribute dividends out of their net profits. Net profit remains after deducting all expenses, taxes, interest etc. from the profit that the company makes.

Companies give the amount of Dividend on the basis of per share. For example you have 100 shares of X company and that X company has declared dividend of Rs 10 per share then you will get 100*10 = Rs 1000 as dividend. Apart from buying and selling shares, investors also earn well from Dividend.

Simply put, the amount received by the shareholders out of the net profit of the company is called dividend.

How Dividend Works

  • When the companies listed in the stock market earn good net profit or net profit by doing good business, then the management of the company decides whether to reinvest the profit in the company or distribute the profit among the shareholders.
  • When the management of the company reaches a final decision to distribute the dividend, the Board of Directors of the company declares the dividend to be distributed,
  • In which when the dividend will be paid, dividend per share and record date are declared.
  • Finally, the dividend is distributed to the shareholders on the due date.

Types of Dividend in Hindi

Companies mainly give 6 types of dividends to the shareholders.

  • Cash Dividend
  • Stock Dividend
  • Asset Dividend
  • Scrip Dividend
  • Liquidating Dividend
  • Special Dividend

Let us now know about all these 6 types of Dividend one by one.

#1 – Cash Dividend

As the name suggests, this type of dividend is paid in cash. companies share holders bank accounts Directly transfers the dividend amount. sometimes it check is also given in Cash Dividend is the most popular dividend.

#2 – Stock Dividend

In Stock Dividend, companies can also give shares of the company to the shareholders in exchange for cash. Shareholders have the option of what type of dividend they want.

#3 – Asset Dividend

When the company pays any kind of movable or immovable property or non-monetary property in the form of dividend to the shareholders, it is called Asset Dividend.

#4 – Scrip Dividend

Scrip Dividend is very different from the three previous dividends. When the company does not have sufficient funds to pay the dividend, then companies issue Scrip Dividend. Scrip Dividend is a guarantee given by the company to the shareholders that they will pay the dividend in future.

#5 – Liquidating Dividend

When a company is winding down its business, it pays Liquidating Dividend to its shareholders. It is the final dividend paid by the company to the shareholders.

#6 – Special Dividend

When the company pays the dividend out of its dividend policy, then this type of dividend is called Special Dividend. This dividend is higher than the normal dividend. When companies make more profit, they pay this type of dividend.

Dividend Rules In Hindi

If you are an investor then you must be aware of the rules of dividend.

  • It is not mandatory for any company to give Dividend to the shareholders.
  • All rights related to giving Dividend are with the Board of Directors of the company.
  • If a company is giving Dividend to its shareholders every time, then it is not necessary that it will give Dividend to the shareholders in future also.
  • Company always gives Dividend on face value and not on share price. For example, the share price of a company is Rs 100 and the face value is Rs 10. If the company declares to give 100 percent Dividend, then it means that the company will give 10 rupees Dividend on every share.

What is Dividend Policy

The principles or rules that are followed to determine the rate of dividend are called dividend policy. Every company has its own separate dividend policy and whenever the board of directors of the company distributes the dividend, they distribute it under the company’s dividend policy.

How Dividend Is Calculated (Dividend Calculation in Hindi)

All the companies listed in the stock market have a face value. On the basis of this face value, companies distribute dividend to the shareholders. The company has no relation with the calculation of dividend from the current market price.

For example, suppose the price of a share of SBI is Rs 1000 and its face value is Rs 100. Now SBI has announced to give 100% dividend, so it means that the dividend per share of SBI is Rs 100. Similarly, if SBI announces to give 50 percent dividend, then the dividend per share of SBI is Rs 50.

If you have 10 shares of SBI then you will get 10*100 = Rs 1000 in 100% dividend. So this is how the dividend is calculated.

how to get dividend

The company declares dividend to the shareholders in case of profit making. Dividend is credited to the bank account linked to the demat account of the share holder. like your demat account Upstox and your PNB bank account is linked in Upstox. So the dividend you will get will come in your PNB bank account.

Important Dates Related to Dividend

There are some important dates related to dividend which all shareholders should know about.

  • Dividend Declaration Date – This is the date when the Board of Directors of the company declares dividend to the shareholders.
  • Record Date – The shareholders of each company have a record book in which the names of all the shareholders are there. This record changes daily, so the record date is determined. Only those shareholders whose names are in the record book till the record date get the dividend. The record date is also told on the day of Dividend Declaration Date.
  • Ex Dividend Date – This is the date till which the shareholders can buy the shares and get the dividend. This date is generally up to 2 days before the record date. If an investor buys shares after the Ex Dividend Date, then he does not get dividend. Ex Dividend Date stock exchange so that the names of all rightful shareholders are recorded in the record book till the record date.
  • Dividend Payment Date – The day on which the dividend is paid to the shareholders is called the payment date.

What is Dividend Yield

Dividend Yield is a financial ratio that shows the ability of a stock to pay dividends. Dividend Yield lets the investor know what percentage the investor will get as dividend in the investment made at the current market value of the stock. Dividend Yield keeps on fluctuating depending on the share price.

Dividend Yield = (Dividends Value Current Market Price) X 100

Let us understand with an example, suppose there is a company X whose share price is Rs 500 and its face value is Rs 50. The company has announced to give 100% dividend (i.e. the company will give a dividend of Rs 50 per share). Now talking about Dividend Yield, this is the formula.

Dividend Yield = (50/500)*100 = 10%

Highest Dividend Paying Company

Following are some of the major companies offering the highest dividend bonus.

  • Coal India
  • Vedanta Limited
  • BPCL
  • IOC,
  • NMDC,
  • sonata software

Note – We do not recommend investing in these companies here, it has been told to you for informational purposes only. Before investing in any company, take expert advice.

FAQ: Dividend Kya Hai In Hindi

What is dividend in share market?

When companies give some percentage of their net profit to the shareholders, it is called dividend.

When is the dividend received?

Dividend is paid only in case the company receives profit.

What is the Hindi meaning of dividend?

Dividend is called dividend in Hindi i.e. a part or part of profit.

What is a Dividend Policy?

The rules under which the company distributes dividend to the shareholders are called dividend policy.

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Conclusion: What is dividend in Hindi

In this blog post, we have provided you complete information about dividend and we sincerely hope that after reading this article all the doubts related to dividend will be cleared in your mind. dividend from stock market Passive Income There is a good way to do this, you too can earn good dividends by investing in the stock market.

So friends, this is all in this article, hope you have got to learn something from this article like our other articles. If you liked this article, then share it with your other friends on social media as well and tell them this dividend information too.

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