Tell me the criteria of the dividend ?
Asked by zahid beg, 09 May '09 01:38 pm
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Dividends can be declared , if there is surplus in p&l account and out of current years net profit after tax. Companies in India believe more in ploughing back profits and pay generally a small portion as dividend. MNC\'s however believe in liberal dividends , as they want to remit higher amounts to their fgn owners. PSU\'s also pay high dividends because Govt needs money to reduce budget deficitAnswered by sachin vinayak paradkar, 09 May '09 03:12 pm
75%Answered by veeravenkata satyanarayana, 09 May '09 02:29 pm
Dividend is the the sharing of profit to shareholders of a company while running in profit.So when the company is in profit u will get dividend.If the company is in huge profit they are obliged to give high dividend.When the company is in loss they might not pay the dividend.So While taking a company u should look upon the sound background of the company.If the company has sound background they can provide consistent dividend.Answered by anup, 09 May '09 02:10 pm