How much company profit do I get for holding shares


I hold a minor amount of stocks in a company, do I get a share of the profit that the company makes? How does it work?

yes, it is called dividend

1 Like

You will get the profit of the company either by Dividends or by Capital Appreciation(increase in stock value). If the company is making loss then there will be no dividend.

1 Like

Thank you all for answers, how do I know how much dividend I get? Is it given every quarter?

Ex. I hold 10 shares in ITC, how much dividend will I get and when?

It is not compulsory to distribute dividends. If a company thinks they need cash for say expansion of business, they can decide not to distribute dividends and keep the cash.

If and when company announces dividend, they will disclose this information to the exchanges in filing. You can check this on corporate announcement page on exchange website.

You can also check this information in the stock Fundamentals option on Kite.

ITC had previously announced dividend in February.

If you are new to stock markets, would suggest you go through Varsity :slightly_smiling_face:

1 Like

Thanks for the detailed info and tip about fundamentals in kite.

I have gone through the Introduction module, in Section 6.5 it is mentioned that:

By virtue of owning the shares you are entitled to few corporate benefits like dividends, stock split, bonus, rights issue, voting rights etc. We will explore all these shareholder privileges at a later stage.

At what stage are these “shareholder privileges” discussed in varsity?

Its not fixed, dividend can be of 2 types i.e., final and interim dividend. If company has enough profits then they can announce dividend in meeting of directors etc.

If you are holding shares and lets say in february itc announced rs.5 per shares of dividend then you are eligible to get rs.50 as dividend

1 Like