Dividend earnings you would have earned from the Indian stock market if you stay invested

 

We all know that Long-term investment is the key to wealth creation. One of the main income streams from share market investment is dividend earnings. It's the sum of the amount that a company offers to its shareholders from the profit  gained. In this article, I am making a study on what you would have earned as dividend from the following stocks if you stay invested in it from inception.

•  Tata Consultancy Services Ltd
  

Tata Consultancy Services Ltd is a blue-chip company operating in the Computers- Software and Consulting sector. It is listed on NSE on 25th August 2004. In this article, I am going to list out the dividend offerings announced by TCS firm from 25th august 2004 and the total income you should have earned from TCS as dividends up to 2022. From 2005 July to 2006 July TCS announced dividends 3 times and the total sum of those dividends will be Rs. 15.5 /-. In 2006 the company announced a stock bonus of 1 for 1 share . Hence the 1 share in your portfolio will become 2. From 2006 October to 2009 June, TCS announced dividends 11 times. Thereby earning an amount of Rs. 86/- for the 2 shares in your DEMAT account for that period. In 2009 July, A bonus of 1: 1 is announced. The total No. of shares in your portfolio will be 4 shares. From 2009 October to 2018 May, dividends were announced 39 times and the total sum of those declared dividends is Rs. 1352.8/-. In 2018 July a bonus of 1: 1 is announced and the initial 1 share will be 8 now and a total sum of Rs. 1304 is declared as dividends for the period 2018 July to 2022 May. In total if you have bought 1 share of Tata Consultancy Services Ltd from the date of  listing, You will be earned a total amount of Rs. 2758.3 and that 1 share will be 8 now. The amount you invested for the IPO of TCS will be Rs. 949/- and the current value of that investment will be Rs.27320/-.
 

•  Mind Tree Limited

Mind tree Ltd is a company that operates in the Computers- Software & Consulting sector listed in Stock Market through IPO on March 07th 2007. The face value of the share is Rs.10 and the listing price was Rs. 425 per share. Now let us evaluate the dividend earnings provided by the stock through the journey. From July 2007 to April 2014 , Mind tree has announced share dividends 17 times for a total sum of Rs.74.5/-. On 2014 Mind tree announced a bonus share of 1 : 1 . From 2014 July to 2016 Jan , the dividends announced for the 2 shares is Rs. 33/- and in 2016 again a bonus share of 1 : 1 announced. Hence the total shares in your portfolio as on 2016 April will be 4. From 2016 April to 2021 Oct , A total dividend amount of Rs. 103 is given by Mind tree . The total dividend earnings from the inception will be Rs.552.2. The current market price of Mind tree is Rs. 2939. So the invested amount of Rs.425 for 1 share in 2007 will be Rs. 11756 in 2022. The total return on investment is 2666 percentage.

From the above data if you have checked you can see that the single share you bought for long-term will bring you so much income. If you imagine that you have bought 10 shares of TCS and Mind Tree from the starting, then the dividend earnings only bring you an amount of Rs. 27583 and Rs. 5552 for an investment of . There by getting a return of 140% over investment. 

This article helps you to understand the minimum returns you can make from Indian share market when you think on Long-term. The return on investment is not the only income stream on stock market. The another income that can be obtained from stock market is dividend income. If this article seems interesting to you follow the page for more updates on Indian stock market trends. View my previous article on Stock Market Trends.