Glossary
Dividend: meaning, example and why it matters
A share of a company's profit paid to shareholders. Companies are not obliged to pay one, and the amount can change or stop.
Worked example
A company declares a dividend of ₹5 per share. If you hold 200 shares on the record date you receive 200 × ₹5 = ₹1,000 before any tax.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
A dividend is one way a company can pass profit to shareholders. It is not guaranteed and can be reduced or stopped.
Related terms
See it in practice
Frequently asked questions
Do I receive a dividend if I purchase a share today?
Only if you own the share before the ex-dividend date the company sets. Shares bought on or after that date do not qualify for that dividend.
Is this page investment advice?
No. Dividend is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.