Apr 29, 2010

Investing and Dividends: A forgotten Basic


               Why invest in equity shares? Why do we become investors? It is return. Return on our capital. The return while investing into any company is dividend. We get return from or in the form of dividends. But how many people investing today think about dividend? There is an ill-awareness and mis-education going on in markets. Most analyst or investment manager does not emphasize this point. All give targets and calculate the percentage rise. While real investing is aimed at earning dividends and ofcourse the capital appreciation in terms of bonus issues and rise in the share’s quoted price in addition. The return counted by the buy-price and target price is practicable only when the shares are actually sold and till it is only on papers.

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