How many taparia tools stock one has to buy in order for the dividend of 5000 Rs per year?

in #blog2 months ago

To determine how many Taparia Tools stock shares you need to buy to receive a dividend of Rs. 5000 per year, I will use the dividend data provided in the CSV format.

tptools.png

From the data, we can see that the company paid the following dividends in the past:

  1. Rs. 200 per share as an interim dividend announced on 12-02-2024
  2. Rs. 775 per share as a final dividend announced on 30-05-2023
  3. Rs. 775 per share as an interim dividend announced on 24-02-2023
  4. Rs. 525 per share as a final dividend announced on 31-05-2022
  5. Rs. 500 per share as an interim dividend announced on 14-02-2022
  6. Rs. 700 per share as an interim dividend announced on 20-12-2021

To estimate the annual dividend, we need to consider the most recent dividends paid. Let's assume that the company will continue with a similar dividend pattern in the future.

The most recent annual dividend can be calculated as:
Interim dividend (12-02-2024): Rs. 200
Final dividend (30-05-2023): Rs. 775
Total annual dividend = Rs. 200 + Rs. 775 = Rs. 975 per share

To receive a dividend of Rs. 5000 per year, you would need to buy:
Number of shares required = Target annual dividend / Annual dividend per share
Number of shares required = Rs. 5000 / Rs. 975 ≈ 5.13 shares

Since you cannot buy fractional shares, you would need to round up to the nearest whole number.

Therefore, to receive a dividend of approximately Rs. 5000 per year from Taparia Tools, you would need to buy at least 6 shares of the company's stock at the current price of Rs. 4 per share.

The total investment required would be:
6 shares × Rs. 4 per share = Rs. 24

Please note that this calculation is based on the assumption that the company maintains a similar dividend pattern in the future. Actual dividends may vary.