Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 33 terms
Cash a company distributes to shareholders out of its profits, received by whoever owns the share before the ex-date.
Sustainable only when covered by free cash flow — a company borrowing to maintain its dividend is buying goodwill with someone else's money. It is now taxed in your hands at your slab rate.
Valuing a share as the present value of all the dividends it will pay.
The Gordon growth version is next year’s dividend ÷ (required return − growth). Very sensitive to the gap between those two rates.
The bank account details held for you — by your depository participant for demat holdings, or on the folio at the registrar — into which dividends and redemptions are credited.
It does not follow you when you change banks, and it lives in a different place for every folio. A dividend that fails to arrive is usually this record rather than the company.
The stated approach determining how much profit is returned to shareholders.
In a PSU it may follow the promoter’s fiscal calendar rather than the business’s reinvestment needs.
A high yield created by a falling price and an unaffordable dividend about to be cut.
The yield was never available. It was arithmetic, not income.
Annual dividend per share divided by the share price.
A high yield usually means the price collapsed, not that the company got generous.
The Investor Education and Protection Fund, to which dividends left unclaimed for a number of consecutive years fixed in the Companies Act — and the shares behind them — are transferred.
Not a confiscation. The rightful owner can claim them back through a prescribed application verified by the company and then the authority, and it is far harder for an heir than for the person who bought the shares.
A receipt the income-tax law treats as a dividend although it does not arise from an ordinary declaration — including, for buybacks from 1 October 2024, the whole consideration a shareholder receives on tendering shares.
The head of income decides what you keep. The entire amount is taxed at your slab rate rather than the gain at the equity rate, and the cost of the shares is not set against it — it becomes a capital loss in a different part of the return.
A dividend received by one company from another. Where an Indian company receives one and itself distributes a dividend within the period prescribed, it may deduct what it distributes against what it received, up to the amount received.
The relief is conditional on passing the cash on. A holding company that receives a dividend and keeps it is taxed on the receipt at its own rate, which is part of why cash sitting one layer down is worth less than it looks.
A dedicated account into which a company must move any declared dividend it has not paid or that has not been claimed within the statutory payment window.
A ring-fence rather than a write-off. The money stays payable to whoever comes forward, until the seven-year clock hands it to the Investor Education and Protection Fund.
The Annual Information Statement on the income tax portal, listing the transactions the department already holds on record — share sales reported by your broker, dividends and interest received.
Read it before you file rather than after. A mismatch is the commonest trigger for a notice, and it is almost always clerical: an account you forgot about, or a corporate action recorded differently.
A company event that changes share count or price — split, bonus, dividend, rights, demerger.
When a chart shows a mysterious overnight halving, check announcements before forming a view.
The treatment of an associate or joint venture under which the investment starts at cost and is then increased by the investor’s share of the investee’s profit, reduced by its share of losses, and reduced again by dividends received.
One post-tax line of profit and one line of carrying amount. No revenue, no assets, no borrowings and no interest cost from the investee reach your accounts at all.
The cash flow bucket covering borrowing and repayment, share issues and buybacks, and dividends paid.
Read it alongside the other two. Negative operating cash flow with a large positive here describes a company kept alive by fresh borrowing rather than by trading.
The reserves of a company available for distribution as dividend under the Companies Act, as distinct from reserves earmarked or created for a specific statutory purpose.
The dividend constraint sits at the level of the company writing the cheque, never at the level of the group. A subsidiary with carried-forward losses still to absorb can be holding cash it is not permitted to distribute.
The proportion of earnings paid out as dividends.
Under about 60% is affordable. Above 100% the dividend is funded from reserves or debt — a countdown.
An index computed from the prices of its constituents alone, with dividends excluded — the series almost every headline index level quoted in India refers to.
The counterpart of the total return index, not another name for it. Comparing a holding that pays out against a price index charges the holding for its own dividends, and the error is the difference in the two payout rates, compounded.
The firm a company appoints to maintain its register of members and to process folio-level requests — dividends, transmission, dematerialisation and corporate action entitlements.
For anything held in physical form this is your counterparty, not your broker. A handful of these firms maintain the registers of most listed Indian companies.
Cumulative profits a company has kept rather than paid out as dividends.
The harvest management decided not to distribute. Where it went over ten years tells you more about them than any strategy deck.
Price change plus dividends, the complete return from holding an asset.
A stock yielding 6% while falling 15% is not producing income. Judge holdings on this, never on yield. On a high-payout instrument such as a REIT it is most of the answer, and none of it is on the price chart.
The same index basket computed with dividends reinvested, as against the price index, which excludes them.
Over weeks the difference is invisible; over a decade it is two different-looking charts. Any statement that “the index went nowhere” is being made on the series that throws the dividends away.
Moving cash from a subsidiary up to its parent — by dividend, by repayment of an intra-group loan, or by a charge for interest, royalty or services.
Consolidated cash flow says what the group earned. Upstreaming is what it takes to get any of it to the entity whose shares are listed, and each route carries a different cost and a different set of permissions.
A market in which the futures price trades below the spot price of the underlying.
Reads as bearish and frequently is not. Rule out a dividend due before expiry, and remember that a crowded long book in a stock under F&O ban can only sell futures — the discount that produces is plumbing, not opinion.
The annualised gap between the futures price and spot, calculated as ((futures − spot) ÷ spot) × (365 ÷ days to expiry).
Roughly in line with short-term interest rates in an ordinary market. A negative number is not automatically bearish: check for a dividend before expiry first, because the futures holder does not receive it and the price discounts it.
A lender agreeing not to act on a breach on this occasion, without giving up the right it acquired.
It was not granted free — look for what it cost, in a wider spread, security created, a dividend not declared or capital expenditure deferred. And a waiver reached after the reporting date does not move a reclassified loan back to non-current.
The return an asset can reasonably be projected to deliver over a long horizon.
Earnings growth plus dividend yield, plus or minus re-rating. Plan at 10–11% for Indian equity.
The nominal value assigned to a share in the company’s capital accounts, commonly ₹10, ₹5, ₹2 or ₹1 in India.
A bookkeeping figure with no relation to what the share is worth. Dividend percentages are declared against it, which is how a "300% dividend" turns out to be ₹6.
A listed entity whose principal asset is stakes in other companies rather than an operating business of its own.
You own the underlying indirectly and receive only what flows up as dividends, taxed on the way. That is the structural reason these trade below the sum of their parts.
A rupee account for income earned in India, with repatriation capped annually.
Rent, dividends and pension land here. Sending money out needs a limit and a CA certificate.
Remuneration paid to the controlling family in executive roles.
Rising promoter pay with no dividend and flat profit is the clearest red flag in the note.
The no-arbitrage link between a call, a put, the share and the strike: C + PV(K) = P + S.
If one side gets cheaper, traders buy it and sell the other until the gap closes. Dividends and costs explain most apparent breaks.
Accounts covering the parent legal entity only.
Subsidiary profit appears only as dividends and subsidiary debt not at all. Rarely the right set.
Systematic Withdrawal Plan — a fixed amount redeemed from a fund at regular intervals.
More tax-efficient than dividends: only the gain portion is taxed, and at capital gains rates.