💡 Core Concept

Your share of the
company's profit!

When a company earns profit, it distributes a portion to its shareholders — people who own its shares. That distributed amount is called a Dividend.

💰
Cash Dividend
📊
Stock Dividend
0%
No Profit = No Dividend
🏢
Company
Rs. 40/share
Dividend declared
😊
60 sh.
😊
40 sh.
😊
20 sh.
💵
Cash Dividend
The company distributes a fixed amount of cash per share. If the rate is Rs. 40/share and you own 60 shares, you receive Rs. 40 × 60 = Rs. 2,400.
Most Common
📊
Share Dividend (Stock)
Instead of cash, the company gives extra shares. A 10% share dividend means 10 bonus shares for every 100 shares held.
Also Called Bonus Shares
🔄 How Dividend Reaches You — Step by Step
🏢
01
Company
Earns Profit
→
%
02
Decide
Dividend Rate
→
🧮
03
Calculate
Per Share
→
✖️
04
Multiply by
No. of Shares
→
🎁
05
You Receive
Dividend!
📘 Key Terms You Must Know
📌
Share / Stock
A unit of ownership in a company
👤
Shareholder
A person who owns shares of a company
💰
Dividend
Profit distributed to shareholders per share
📊
Net Profit
Profit after deducting all expenses & taxes
🏦
Face Value
Original value of a share (typically Rs. 100)
🇳🇵 Real-World Example · Nepal Telecom

Nepal Telecom Company declared a cash dividend of Rs. 40 per share from the profits of fiscal year 2076/77. A shareholder holding 60 shares would receive:

60 × Rs. 40 = Rs. 2,400 cash dividend
📐 Formula 1 — Cash Dividend Received
Total Dividend = No. of Shares × Dividend per Share
Use when you know how many shares a person owns and the dividend declared per share.
📐 Formula 2 — Dividend per Share (from Rate)
Dividend per Share =Dividend Rate (%) × Face Value100
Use when dividend is declared as a percentage of the face value. Face value is usually Rs. 100.
📐 Formula 3 — Total Dividend from Net Profit
Total Dividend =Dividend Rate (%) × Net Profit100
Use when you know the net profit and the rate at which dividend is declared.
📐 Formula 4 — Find Dividend Rate
Dividend Rate (%) =Dividend per Share × 100Face Value
Use when you know the dividend amount per share and face value to find the rate percentage.
📐 Formula 5 — Share Dividend (Stock Dividend)
Bonus Shares Received =Dividend Rate (%) × No. of Shares Held100
Use when a company declares a share dividend — the shareholder gets additional shares instead of cash.
🔤 Variable Key
D = Dividend per Share (Rs.)
n = Number of Shares
R = Dividend Rate (%)
FV = Face Value (Rs.)
An insurance company has 6,00,000 units of shares at Rs. 100 each and made a profit of Rs. 40,00,000. It distributes 20% of profits as cash dividend. Find how much cash dividend the person owning 60 shares receives.

✏️ SOLUTION

Given: Total Shares = 6,00,000 | FV = Rs. 100 | Profit = Rs. 40,00,000 | Rate = 20% | n = 60

1
Total cash dividend = 20100 × 40,00,000 = Rs. 8,00,000
2
Dividend per share = 8,00,0006,00,000 = Rs. 1.33
3
Cash dividend for 60 shares = 60 × Rs. 1.33 = Rs. 80
✅ The person owning 60 shares receives Rs. 80 as cash dividend.
Nepal Telecom declared Rs. 40 per share as cash dividend. A shareholder owns 250 shares with face value Rs. 100. Find (a) total dividend and (b) dividend rate.

✏️ SOLUTION

Given: Dividend per share = Rs. 40 | Shares = 250 | FV = Rs. 100

(a) Total Dividend

1
Total Dividend = 250 × Rs. 40 = Rs. 10,000
✅ Total Cash Dividend = Rs. 10,000

(b) Dividend Rate

1
Rate = 40 × 100100 = 40%
✅ Dividend Rate = 40%
A cooperative has 13,63,497 shares of Rs. 100 each. Mamata holds 200 shares. The cooperative earns Rs. 1,20,00,000 and distributes 45% as cash dividend. How much does Mamata receive?

✏️ SOLUTION

Given: Total Shares = 13,63,497 | Profit = Rs. 1,20,00,000 | Rate = 45% | n = 200

1
Total cash dividend = 45100 × 1,20,00,000 = Rs. 54,00,000
2
Dividend per share = 54,00,00013,63,497 ≈ Rs. 3.96
3
Mamata's dividend = 200 × Rs. 3.96 = Rs. 792
✅ Mamata receives approximately Rs. 792 as cash dividend.