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Tracking your dividend returns

Tracking your dividend returns
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Dividends are a portion of earnings that a company distributes to all its shareholders every year. While investing for the long haul, investors consider dividend-paying companies as an important factor. It is an additional return through price appreciation on top of what investors earn.
In simple terms, dividends are the “free extra-cheese on pizza” in investing. Dividends returns are permanent and are not lost in a market crash. Here, we explain how you can track the dividends you have earned from your invested smallcases.

How are dividends paid?

Company management announces dividends on the announcement date. Shareholders approve the amount, then the company makes these payments to shareholders’ account. So, if you have invested in Dividend Aristocrats smallcase (it contains stocks that pay dividends), post the dividend announcement, the company credits the money directly to your bank account.

Tracking dividends on smallcases

The smallcase platform makes it easy to track the dividends that you have earned. You can track dividends under the ‘Investments’ page, where you can see the total dividends earned by your smallcase.
Let’s assume that company A in your smallcase has yielded Rs. 51 as dividend and company B has yielded Rs. 30.90. Your dividends column will show you dividends earned as Rs. 81.90 (dividend from company A + dividend from company B).

How to see dividends earned?

  1. Go to the ‘Investments’ page on the smallcase platform or our mobile app
  2. Click on the smallcase for which you want to see the dividends earned
  3. Click on ‘Show Details’ to see the dividends earned by your smallcase

Benefits of dividend investing

Consistency of dividend payments generally indicates a strong company in sound financial health. Dividends are an extra income earned over and above the gains earned from the stock. In the long-term, dividend-paying stocks also provide a hedge against rising inflation. What’s more, they act as a powerful source of secondary income and could double up as a retirement fund.

On the whole, dividends give a powerful boost to any long-term portfolio. Dividend-paying stocks should ideally be held for the long-term so that you benefit from dividend income as well as the company’s growth.

Dividend investing with smallcases

You can invest in dividend-paying companies in just 2 clicks with smallcases. See this collection of smallcases focusing on income strategies based on dividends & fundamentals.

 

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