“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” – John D Rockefeller.
When a company makes profits, it usually pays out a part of its profit as a dividend. This can vary if the company’s profit varies, or like in some companies, the profit itself has to be re-ploughed back into the company for growth. But there are companies that consistently pay dividends, and distribute a certain amount of profit each year. The
If the current share price is Rs. 100 and the company pays Rs. 2 . . .