Getty Images1. Equity investments generate two types of returns— capital appreciation through price movements and regular income through dividends.
2. Dividends are a common way for a company to share its profit with the shareholders.
3. Dividend yield shows how much a company pays out in dividends each year relative to its market price.
4. High dividend yields are typical of mature, stable and high cash flow-oriented companies.
5. High dividend-yielding companies are less volatile than the market.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
2. Dividends are a common way for a company to share its profit with the shareholders.
3. Dividend yield shows how much a company pays out in dividends each year relative to its market price.
4. High dividend yields are typical of mature, stable and high cash flow-oriented companies.
5. High dividend-yielding companies are less volatile than the market.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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