how we attract toward the company to invest in its share?
if we invest from secondary market than we should get dividend from market price, because we spend market price to buy the share.
2007-10-27 19:15:49 · 5 answers · asked by Rajesh M 2 in Business & Finance ➔ Investing
Dividends are announced by the company on a per share basis. The current Market price doesn't have anything to do with it. You get whatever the dividend is times the number of shares you own.
The dividend yield is a percentage calculated by dividing the annualized total dividend by the current stock price. This value changes as the stock goes up or down.
2007-10-27 19:38:40 · answer #1 · answered by SJ 4 · 1⤊ 0⤋
Dividends are declared on the Face Value of the shares only. Suppose, the company has done a stock split of 1:5, the face value of the share would have become Rs.2 from its original value of Rs.10. So if a dividend of 100% is declared after the stock split, the dividend amount would be Rs.2/- per share.
2007-10-28 02:55:25 · answer #2 · answered by Thunder 2 · 0⤊ 0⤋
Companies pay dividends per share of stock. So if the dividend was $0.50/share and you owned 1000 shares you would get $500. It doesn't matter how much you paid for the stock. Everyone gets the same dividend per share regardless of what they paid for it when they bought it.
The stock price or market value is used to calculate the dividend yield, which is the percentage of your investment that you will receive back in dividends. This is a way of comparing dividends between stocks with different market values, and might be one factor to consider when deciding what companies to invest in.
2007-10-28 02:45:00 · answer #3 · answered by Alan S 6 · 0⤊ 0⤋
Dividend is paid on face value of share and it is not possible
to pay on the market price because that always flucutuates.
Further one can make profit by price diffrence of purchase
and sale of shares.
2007-10-28 03:05:26 · answer #4 · answered by pranay 4 · 1⤊ 0⤋
dividend is issued on face value because that is the actual working capital in the company.
2007-10-28 03:07:40 · answer #5 · answered by ps 3 · 0⤊ 0⤋