Except JSW steel and Vedanta all are PSU companies (major stake is with govt). Govt forces these companies to pay dividends so that govt get good revenue which they need to use for social welfare schemes.
Govt doesn’t have to pay tax for the dividend it receives (who are they going to pay, to themselves?) but everyone else has to pay tax at their peak income tax slab. It makes good sense if it is invested in someone’s name who doesn’t have an income like an house wife or low income person.
Has anyone noticed, the stock price falls more than the dividend amount on ex dividend date or after that. There’s no capital protection like FD, not saying FD is a good investment plan.
Dividend and DRIP made sense when there was dividend distribution tax by company and not by the investor.
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