What is dividend in stock market?
Dividend is a portion of a company's profits that is distributed to its shareholders as a reward for their investment. When a company earns a profit, it can choose to use the profits in a number of ways, such as reinvesting it in the business, paying off debt, or distributing it to shareholders as dividends. Dividends are typically paid in cash, although some companies also pay dividends in the form of additional shares of stock.
The amount of dividend paid to shareholders is determined by the company's board of directors and can vary from year to year based on the company's financial performance and other factors. Dividends are generally paid out on a regular basis, such as quarterly or annually, and can be an important source of income for investors who rely on a steady stream of cash flow from their investments.
Investors who own dividend-paying stocks can receive the dividends directly or reinvest them back into the stock through a dividend reinvestment plan (DRIP). It's important to note that not all companies pay dividends, and the decision to pay a dividend is ultimately up to the company's management and board of directors.
Top dividend paying stocks in India.
Here are some of the top dividend-paying stocks in India, based on their dividend yield as of my knowledge cutoff date:
- Power Finance Corporation Ltd (PFC) - Dividend Yield: 7.34%
- Hindustan Zinc Ltd - Dividend Yield: 6.13%
- Bharat Petroleum Corporation Ltd (BPCL) - Dividend Yield: 5.97%
- Oil India Ltd - Dividend Yield: 5.77%
- NHPC Ltd - Dividend Yield: 5.23%
- Indian Oil Corporation Ltd (IOC) - Dividend Yield: 5.15%
- Coal India Ltd - Dividend Yield: 4.74%
- NTPC Ltd - Dividend Yield: 4.68%
- Infosys Ltd - Dividend Yield: 3.28%
- TCS Ltd - Dividend Yield: 2.28%
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