Swastika Investmart

  Buyback and dividends are two ways a company pays their shareholders when they have surplus funds. Through these methods, a company makes the optimum use of available funds to enhance the value of the shareholders. In this blog, we will cover what are Dividends and Buybacks; which is a better choice for shareholders? What are Dividend Shares? Dividends are the profits that a company wants to share with its shareholders. The dividend is a sum of money a company earns through profit over some time. The process of distributing dividends to its shareholders is decided by the company itself. Some companies pay a dividend to their shareholders on an annual basis while some companies pay a quarterly dividend. It should be noted that dividends payouts are never guaranteed by any company as they are the profit a company earns over some time.  The board of directors of the company have all the rights to decide if the company is going to pay out any dividends or not. Even if the compan...

  When a company makes net profits, a portion of the net profits is paid out to the shareholders in dividends. This is usually referred to as paying some or all of your profits back to shareholders. Paying out dividends to shareholders of a company will normally receive a portion of those dividends as cash income. Ploughing back profits is the opposite of paying out dividends. When a company makes net profits, a portion of the net profits is paid out to the shareholders in dividends. On the other hand, ploughing back profits involves investing its money into its operations rather than distributing it to the shareholders. Example of Plough Back Ratio of X Ltd and Y Ltd X Ltd Amount Y Ltd Amount Total Equity Rs.10,00,00,000 Total Equity Rs.10,00,00,000 Net Profits 2017-18 Rs.3,30,00,000 Net Profits 2017-18 Rs.3,30,00,000 Dividend Paid Rs.66,00,000 Dividend Paid Rs.33,00,000 Dividend Ratio 20% Dividend Ratio 10% Plough Back Ratio 80% Plough Back Ratio 90% Market Capitalization Rs.52.8...

A new variant of Covid 19 has been identified which was named Omicron by the World Health Organization (WHO). Many  share trading  analysts suggested that this new variant tends to spread quicker than the Delta variant and is much more infectious than other covid variants. Also, they said that the vaccines available now are less effective against this new variant. As we are trying to recover from the second wave, this omicron variant caused precariousness in the market. If we talk about the current week, then we will get to know that the GDP for the July-Sept quarter of FY 2022 showed a total growth of 8.4%, which is the fourth consecutive quarter of positive growth post the major contraction. If India wants to remain in the position of the fastest-growing economy in the year 2023, all restrictions are lifted and the growth continues to rise. As said above, if the new strain emerges again, the government will take the necessary steps to bring back the restrictions. Government’...

Treasury bonds can turn out to be a good investment for the ones who seek stable returns or for those who are close to retirement. Are treasury bonds a good investment choice? Investors consider several factors before applying for a bond: these factors include the type of bond, the amount the interest the bond pays, and the time duration their investment will be tied up. Apart from these factors, there are other things also which can bear risk tolerance with a bond’s risk of default. These bonds are guaranteed by the US government. US Treasury bonds are also a type of fixed income type that help investors to get guaranteed returns. What is Fixed Income Securities? Fixed income refers to those investment securities that pay a fixed sum of interest or dividend payments till their maturity date. Government and fixed income bonds are considered as one of the safest fixed income instruments in the world. A bond is a debt security issued by an investor to a borrower. Here, the investors are:...