Investment: Many companies pay dividend to their shareholders.

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If you invest money in a large amount at one place, then it is expected that you will get a good profit.

If profits come from two routes instead of one, then what is the matter.

This is called getting a double benefit deal.

There are many such investments in the capital market from which you can take such advantage.

There are some companies that give dividend or dividend from their profits at different times to their investors.

By investing in their shares, investors can earn good profits.

Before that it is important to understand what is dividend.

What is Dividend?

In the world of stock market, there are some companies that give share of their profits from time to time to their shareholders.

This part received as profit is called dividend.

The shares of such companies are called dividend yield stocks.

However, whether or not to give this dividend is the decision of any company itself.

This is not a mandatory rule.

Companies in the PSU sector mostly pay dividends to their shareholders.

How to get double profit?

There are two ways to earn profit by investing in the stock of any company.

You will get the first benefit when the shares will rise.

And secondly, whatever profit the company is getting, the company will give you a share from that profit.

There are always ups and downs in stocks.

When the market falls, investors start selling their shares, which reduces the price of the shares.

At such a time, if you have invested in any dividend stock, then you can survive even in the midst of such losses.

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Dividend is also considered good for the market.

The market sentiment remains positive due to dividend.

If you invest in a company that gives high dividend, then you can earn a decent income without selling your shares.

When is dividend paid?

It depends on the companies when they pay dividend, how much and how often.

Some companies give dividend once in a year and some even two-three times.

Dividend is paid on per share basis.

At the end of the financial year, the company pays dividends to its shareholders out of the net profit that is made after deducting tax and other expenses from its profits.

(Keep in mind this is just general information on dividends, please consult a financial expert before making any investments.)

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