InvestorQ : How to find out dividend declared on a particular company?
B. Hariprasad Shetty made post

How to find out dividend declared on a particular company?

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Shreya Karn answered.
1 year ago

A company informs its shareholders about the dividend through a press release and Annual General Meeting (AGM). A personal email invitation to attend the AGM is given to each and every shareholder through email or post. So as an investor you don’t have to find dividend, instead you will be informed by the company. In AGM the percentage of dividend that will be shared from the profit generated is disclosed to shareholders and thus the dividend is declared. If it happens that you are not able to attend the AGM, even then you don’t have to worry as the company sends minutes of the meeting, which contains information that was discussed in AGM. As a result, you still come to know the dividend you are supposed to receive as a shareholder.

A company declares a dividend in a percentage of the face value of its stock price and not market price. Face value is the cost of the stock written on the certificate, which is generally Re.1, or Rs.10, or Rs.100, etc. whereas market value of the stock keeps changing as the stock gets traded on the stock exchange.

For eg., if the face value of X Ltd. is Rs. 10/- and the market price is Rs. 280/-, and if the company declares a dividend of 20%, then it implies that the company will pay 20% of Rs.10. So the dividend will be Rs.2 per stock.