You will give some part of the profits to the company
The Consumer Company (HUL) has released impressive results for the March quarter. On a year-on-year basis, the company’s profit grew 44.8 percent to Rs 2,190 crore in the March quarter. A year ago in the same quarter, the company’s profit was Rs 1,512 crore.
There are 2 advantages in this. One advantage will be that you will give some part of the profits to the company. Secondly, you will also profit from the rise in the stock. For example, you have invested Rs 10,000 in a company’s stock and if the share price rises 25% in a year, then your investment will increase to Rs 12500 in a year. One advantage of investing in more dividend paying companies is that you You can also make income without selling your shares. Also read- Submit Rs 5000 here in the name of children, you will get 30 lakhs as soon as you get an adult, know how? Profitable companies pay dividends Generally PSU companies are considered good in terms of dividend. Experts say that if a company is paying dividend, then it means that the company is making profit. There is no shortage of cash with the company. With the announcement of dividend, the sentiment about the stock is also good and it accelerates. However, while choosing such shares, it should be kept in mind that invest in the same company whose track record is to give regular dividend with better growth.