In this video we discuss what a dividend is. Dividend is a payment made by companies to shareholders as a distribution of the profit and cash flows. Dividend income has a number of benefits as explained in the video.
A regular income or cash flow
Increasing confidence in the company’s stability
Reduction of overall portfolio risk
A lot of Indian companies pay dividends on a regular basis. An investor can also invest in these dividend paying companies through Dividend Yield Funds. Such funds are a more tax-effective method to earn a regular income from dividends.