Dividend Calculator

A good dividend yield in India ranges from 3-6%. PSU stocks often offer 5-8% yields. Private companies like ITC, Coal India offer 4-6%. Yields above 8% might indicate business problems. Compare with FD rates (6-7%) - dividend stocks should offer competitive yields plus capital appreciation potential.

No, dividends are not guaranteed. Companies can reduce or suspend dividends during tough times. Look for companies with consistent dividend history over 10+ years. Dividend aristocrats maintain or increase dividends annually, making them safer for income investors.

Reinvesting dividends (DRIP - Dividend Reinvestment Plan) accelerates wealth creation through compounding. If you don't need immediate income, reinvest to buy more shares. If you're retired or need cash flow, take dividends as income. Many investors do 70% reinvest, 30% cash.

Dividends are added to your total income and taxed at your income tax slab rate. No TDS if total dividend is under ₹5,000 annually. Above ₹5,000, company deducts 10% TDS. If you're in 30% tax bracket, dividends are less tax-efficient than long-term capital gains (12.5% tax).

Very few Indian stocks pay monthly dividends. Most pay quarterly or annually. Some REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) offer quarterly distributions. For monthly income, consider dividend mutual funds or create a staggered portfolio of stocks paying dividends in different months.

Dividend payout ratio = (Dividend per share / Earnings per share) × 100. A 40-60% payout is healthy - company retains enough for growth while rewarding shareholders. Above 80% may be unsustainable. Below 20% might mean company is not shareholder-friendly. Look for consistent 40-50% payout ratios.

Yes, with sufficient corpus. For ₹50,000 monthly income (₹6 lakhs/year) at 5% dividend yield, you need ₹1.2 crore investment. For ₹1 lakh monthly, you need ₹2.4 crore. Build this corpus over 15-20 years through systematic investing. Start early, reinvest dividends, and gradually transition to income mode.

Yes, stock price drops by approximately the dividend amount on ex-dividend date. This is normal adjustment. If dividend is ₹10, stock trading at ₹500 becomes ₹490 ex-dividend. Your total wealth remains same - you have cash dividend plus slightly lower stock value. Long-term investors shouldn't worry about this.

Dividend Yield = (Annual Dividend Per Share / Current Stock Price) × 100. Example: Stock price ₹500, annual dividend ₹25 = 5% yield. Higher yield isn't always better - check if dividend is sustainable. Compare yield with company's historical average and sector peers.

It depends on life stage. Young investors (20s-30s) should focus on growth stocks for wealth accumulation. Near retirement (50s-60s), shift to dividend stocks for income. Balanced approach: 60-70% growth stocks, 30-40% dividend stocks. Dividend stocks provide stability and income during market volatility.

Start with 15-20 quality dividend-paying stocks across sectors. Target average 4-5% yield. Include mix of high-yield PSUs and consistent private companies. Diversify across sectors - banks, FMCG, energy, infrastructure. Reinvest dividends during accumulation phase (20+ years). Switch to income mode near retirement. Rebalance annually.

Companies that have consistently increased dividends for 10+ consecutive years. Examples: Asian Paints, HDFC Bank, Nestle India, ITC. These companies demonstrate financial strength, shareholder-friendly management, and stable business models. Ideal for conservative dividend investors seeking reliable, growing income streams.