PCS CAPITAL

Any action taken by the company that creates an impact on issued securities is known as corporate action. Dividend, stock split, bonus and rights issue are examples of corporate action. Typically, corporate actions are approved by the company’s shareholders and Board of Directors.  Dividend A dividend is a part of the profit distributed by the company to its shareholders. Distribution percentage (dividend payout ratio) is decided by the company management depending on capital requirement, cost and availability of alternative funds, liquidity, etc. For example, if a company with 10 crore outstanding shares has a net profit of Rs. 50 crore and decides to distribute 40% of its profits to shareholders, then per share dividend will be Rs. 50,00,00,000* 40%/10,00,00,000 = Rs. 2 A dividend is paid on the face value of the share and sometimes declared in percentage form. If a company share price is Rs. 500, face value of the share is Rs. 2 and the company declares a dividend of 250%, then ...

At the height of the pandemic, when most asset classes floundered, gold glittered, and even crossed the 56.5k mark at its peak. Gold’s ability to shine in a crisis is one of the factors that investors love about the yellow metal. Be it a war or financial crises, a pandemic or a natural calamity, people turn to gold in times of uncertainty. That’s why gold is called a safe haven. Let’s look a little more closely at the benefits of investing in gold. Benefits of Investing in Gold There are several factors which makes gold a great asset class to invest in: Safe haven : Unlike fiat currencies, gold has intrinsic value, and it has maintained its position as a store of value for thousands of years. In times of crises, investors tend to move to gold as financial assets turn volatile. Steady returns : While historically, financial assets like equity may have performed better than gold in terms of returns, the yellow metal still offers decent returns. In the last five years, gold has returned o...