What does a dividend mean?
Declaring a dividend is a corporate action taken by the board of
directors of a company. Usually this is done once or twice a year
when the company's financial results are declared and the company
has made handsome profits/revenues.
Dividend is usually declared as a % of the face value of a
share.
A 100% dividend on a Rs. 1/- face value share represents a
dividend of Rs. 1/- similarly a 100% dividend on a Rs. 10/- face
value share represents a dividend of Rs. 10/-
Ex: You hold 1000 shares of XYZ limited with a face value of Rs.
5/- the company has declared a 50% dividend.
Then you would receive Rs. 2,500/- as dividend.