New Delhi: Dividend Benefit: Stock market investors keep an eye on dividends. However, dividend is a kind of reward that the company gives sometimes. This means that it is not certain that dividend will be received every year, but still investors focus on dividends.

Many times investors also say that they have benefited from dividends . In such a situation, the question arises that how are investors getting double benefit from dividends.

What is Dividend?

When a company is profitable, it gives dividends to its shareholders. This dividend can be in the form of cash, shares or some other form. One thing is clear from this that dividends benefit investors. How much dividend the shareholders will get and on which day this dividend will come into the shareholders' account is decided by the company.

For example, on September 6, shareholders of NBCC India received a dividend. Although the company had already announced the dividend, the company decided on which day the dividend would be credited to the shareholders' account. The company's shares trade on ex-dividend on the day of the trading session in which the dividend is credited to the investors' account.

How to get double benefit from dividend

Dividends do not give investors just one benefit but double benefit. Understand it like this, if you have 5000 shares of a company and you have invested Rs 20 lakh for 5,000 shares by buying each stock at Rs 400. You have had this stock for 1 year and in 1 year, the stock gave a return of 18 percent. This means that you got a profit of Rs 3,60,000 through returns.

Now the company is giving a dividend of Rs 12 on each share. If you had 5,000 shares, you would get a dividend of Rs 60,000. On one hand, you got a profit of Rs 3,60,000 from returns and on the other hand, you got a profit of Rs 60,000 through dividend. In this way, you got double benefit through dividend.