Types of Dividend
5paisa Research Team
Last Updated: 05 Mar, 2025 04:49 PM IST

Content
- Introduction
- What are Dividends?
- What are the Different Types of Dividends?
- Impact of Dividend on Share Prices
- Calculation of Dividends
- Functioning of Dividends
- Dividend and Financial Modelling
- Meaning of Dividend Stocks
- Dividend Payout Ratio vs. Dividend Yields
- Conclusion
Introduction
Dividends are payments made by companies to shareholders as a reward for investing in the company. They are usually paid out quarterly or annually, and businesses can offer various types of dividend. In this article we will look at and discuss the different types of dividends and how they work. We will also look at some of the advantages and disadvantages of each type. Knowing the types of dividends available can help you make a well informed decision about investing in stocks. So let's dive in and look at the different various forms of dividend.
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Frequently Asked Questions
A dividend is a portion of the profits earned by a company that is distributed to shareholders. Dividends can come in different types, including cash, stock, or property dividends, and are typically paid out on a quarterly basis.
Dividends can be calculated by dividing total dividends paid for a given period by net income earned during the same period. Dividend yields are also important to understand and are calculated by dividing total dividends per share (DPS) over the market price per share.
Yes, dividend income is taxable in India. Dividend income from mutual funds and stocks held for more than 12 months is exempt from tax up to a certain limit. Any dividend income above this limit will be subject to taxation at the applicable rate.
Dividends are typically paid out on a quarter to quarter basis. Companies announce their dividend dates and types of payments in advance so that investors can plan their dividend payouts accordingly.
Dividends are typically distributed to shareholders on a quarterly basis, although some companies may choose to distribute dividends on an annual or semi-annual schedule. Companies give advance notice of dividend types and dates for investors to plan accordingly.