Sir.
I am confused about the concept of dividends.
There's one share monsanto india which has zero debt.
It's share price dropped from around 4000 to 2000 in last 1-2 years.
But this company gave more than 300% dividend in that span,so will I be in profits or losses ?
they give dividends on face value ... face value of monsanto india is 10 ... 300% dividend means 30 Rs per stock was paid as Dividend ...
30 Rs on a 4000 rs stock is less than 1% dividend yield ... but if the stock price has dropped 50%, you are in net loss of 49% ....
This is why, dividend is not a criteria at all to pick good companies to invest ... Fill up the form below to get a free copy of my book in PDF
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