Dividend Yield Shares

Investment is always made with an objective of making profit. And this profit can either be in the form of capital appreciation or in the form of income to the share holder like dividend income. Every investor would be delighted to receive some dividend cheques in the course of their investment, because they donot sell their share yet they are able to enjoy the fruits of holding the share - it is like having a cake and eat it too!

Few snippets about Investing / Holding Dividend Yield shares:

• Dividends dont lie. Dividends are paid out of the companies Profit after paying tax. Hence if a company is paying its dividend, it means it has already paid the tax on its income. Hence it can safely be assumed that Dividend paying companies are profit making companies.
• Dividends are Tax Free in the hands of Investor. Hence you need not pay any tax on these dividends.
• Rather than looking at the dividend percentage or the dividend in rupees, it makes sense to look at the Dividend Yield (%), also called as Return on Investment. It simply means at the current purchase price what is the return on investments taking into account the dividend received per share.
• It is logical to invest in Dividend Yield Shares when markets are low, since the purchase price will be low and the dividend yield will be high.

At current market price, we have compiled a list of companies which are due to pay dividends in the next one month or so. Hope you find them useful to identify the shares that fit in your portfolio.