Diwali Muhurat Trading 2023 picks 1) SKM EGG PRODUCTS cmp 405 support 384 short term HL 585+ , long-term HL 5700+ , 2) MAN INFRA cmp 142 support 134 short term HL 178+ , long-term HL 1600+, 3) Gujarat Mineral Devp Corp (GMDCLTD) cmp 379 support 325 short-term HL 470+ ,long-term HL 900+ , 4) GODAWARI POWER (GPIL) cmp 624 support 545 short-term HL 728+, long-term HL 1700+, 5) MAHARASTRA SEAMLESS cmp 804 support 740 short-term HL 938+, long-term HL 2500+ All the best , trade with strict stoploss and Risk management. Happy Investing & Trading
Dividend Stocks : Double Profit Investment..!
It can be seen that many of us are investing in fixed deposit schemes for the sake of steady income and security . The country's largest public sector bank , S. B. _ I , currently pays 7 percent interest per annum on a three-year fixed deposit . At the same time , many listed companies
The dividend yield is more than this . In that way , taking a little risk and investing in high dividend yielding company shares has the potential to earn more returns than fixed deposits . In that way, there are those among us who invest in stocks for dividend income .
Public sector stocks that give high dividend income ..!
Mostly public sector company stocks are mostly giving high dividend yield . _ A company reports dividend income as a percentage and in rupees . My NMDC Company has given 375 % dividend as interim dividend on 14th February . The face value of share is Rs.1 . Here 375% is Rs 3.75 as dividend is given on face value only . High dividend paying companies pay interim dividends every quarter ; The final dividend will be paid at the end of the financial year . Dividend yield is the ratio of the purchase price of the stock to the dividend called .
The formula for this
Dividend yield = ( Total dividend paid during the financial year / Purchase price of the share ) *100
For example , someone has bought a share for 100 rupees . If Rs 10 per share was paid in that financial year then the dividend yield is (10/100)*100 = 10%
Dividend Income:
Things to watch out for ..!
While investing in company stocks for dividend income it is imperative to observe some important points .
1. Interest income on bank fixed deposit investment is guaranteed . But , dividend income is not the same in equity investment ; There is no guarantee for that .
2. Income function:
If the company's earnings performance is suddenly not good, there is a possibility that the company will not pay dividends. If the shares can be sold and spent, there is a possibility that the company's performance is not good, and the share price may fall. Therefore, to reduce this risk, it is necessary to invest the investment amount in different company stocks. By doing this, the risk can be reduced even more if they are separate sectors.
3 . Risk taking capacity: There is a risk that the overall value of the equity investment will decrease if the price of the stock, which is already invested for dividend income, sees a large decline in the price due to a decline in the overall market .
Only those who can bear that loss and have the ability to take risk should invest for dividend income.
But, there is no need to worry too much as this risk will be spread over the long run.
3 . Underpriced Stocks: If the stock price is lower than the stock price , the dividend yield will be even more profitable . In the above example , if the share price is Rs 100 and the dividend paid in the financial year is Rs 10 , then the dividend yield is 10% . This is Rs 80 per share in the financial year Given Rs.10 the dividend yield is (10/80)*100= 12.5 % . Therefore , investing in stocks for dividend income is more profitable when the stock price is low . _
A good dividend paying company is on a growth path; If future growth is good, if the stock price has fallen too much during a general stock market decline, buying more of that stock at a lower price will be more profitable later on.
4. Issuance of bonus shares: In general, the number of shares will increase significantly in the long run when investing in company stocks that regularly issue bonus shares . Then the dividend amount and dividend yield will be higher . For example , a person has bought 100 shares . 100 if the company offers 1:1 free shares Share The will increase to 200 shares . If the same company again gives 1:1 free shares then 200 shares will increase to 400 shares . If the company offers free shares again at 1:1 then the investor will have a total of 800 shares.
A company pays an average annual dividend of Rs.10 per share. An investor buys 10,000 shares at a price of Rs.300Let's assume that he is staying. His investment is Rs. 30 lakhs. If he is given a dividend of Rs.10 per share, he will get a total dividend of Rs.1 lakh. The company is offering free shares on a 1:1 basis. In this case, the price of the stock held by the investors will increase to 20,000. Due to the issue of free shares, the price of the company's stock will decrease in proportion to the number of free shares. Here the share price of Rs.300 will fall to around Rs.150. But this Rs.150 is more likely to rise again gradually. Now the investor will have 20,000 shares. If the company pays a dividend of Rs.10 per share, he will get a total of Rs.20,000*10 as a total dividend of Rs.2 lakhs. The value of the investment will also be approximately 20,000*150 = Rs.30 lakhs.
Hence, while investing for dividend income, looking into companies offering bonus shares can be an additional benefit.
5. Increase in share price:
Apart from the dividend income in stock investment, long-term capital gains can be achieved through the appreciation of the stock price over the long term. Together these two can get double profit. Therefore, those who invest in stocks for dividend income, it would be extra profitable to invest by looking at how the price of those stocks have increased in the last 5, 10 years.
There is no income tax up to Rs 1 lakh in a financial year if the profit is made by selling the shares in stock investment for more than one year. Any gain beyond that is taxed at 10% irrespective of the income tax bracket. That way, you will have to pay less income than the equity investment gains.
Let's take a look at five important stocks with capital gains through dividend income and share price.
Important Stocks to Watch for Investment ..!
1. Indian Oil Corporation ;
One of the Maharatna companies operating under the control of the central government is I. oh _ C is Indian Oil Corporation . _ This company is engaged in oil drilling operations and production . Also , the work of refining petroleum products , transporting it through pipelines and marketing is going on .
India's leading oil refining and petroleum products marketing company has a very high dividend yield . Its dividend yield is 10.5% . Its share price in 2013 was around Rs . It was 50 . Currently Rs . 80 is becoming a tight trade . Three for investors The system offers free shares (Bonus) .
2. R E C :
R. Rural Electrification Corporation is a Central Public Sector Undertaking . This company provides loans for power distribution projects in the country . The dividend yield is 9.89 % .
In the last year 2013 , the share price of this company was Rs . It was 80 . Currently the share price is Rs . 115 and has given free shares to investors twice . _
3. H C L Tech .:
A global leader in IT services . _ It is one of the top 5 companies in India in terms of revenue . Its dividend yield is 4.41% . In the last year 2013 , the share price of this company was Rs . It was 180 . Currently the share price is Rs 1,080 . Three times for investors
Free shares are being offered .
4. Philips Carbon Black ltd:
It is a company belonging to the Sanjeev Goenka Group . It has been running since 1960 . _ It is the largest carbon black manufacturing company in India . The company operates in more than 40 countries . Its dividend yield is 4.91% .
Last year 2013 the share price was Rs . It was 7 . Currently the share price is Rs . It is 110 . It has given free shares to investors five times .
5. Power Grid Corporation :
India 's largest power distribution company . The public sector Maharatina company has a dividend yield of 5.21% . In 2013, the share price was Rs . It was 80 . Currently the share price is Rs . 225 is . _ One time free share is offered to the investors .
Apart from these , public sector mineral production company N. _ M. _ D. _ C , public sector alternative energy company GAIL , public sector housing and rural development company HUDCO , public sector mining company Coal India , and public sector lenders to power companies . Sector company Power Finance Corporation 's dividend yield is attractive . _ These can also be considered for investment . How about box income tax ?
Fixed deposit interest income is subject to income tax in whichever income tax bracket one falls under . Dividends paid by listed companies were exempt from income tax till recent years . Now one has to pay income tax on that income in whichever income tax bracket one
falls under. Hence , there is no difference between Fixed Deposit and Equity Dividend as far as Income Tax is concerned .
