Dividend Trading.

[trader_jini]

Hi

I would like to trade stocks that pay dividends. In most of the stocks the DPS seems less than Dividend%.

For example HCL Tech is showing DPS as 6 and Dividend% as 300 and ex-Div data is 27/01/2016.

Should I buy HCL Tech and what is DPS and Dividend % and how will it help me if I want to trade stocks for their dividends.

 

[rvm123]

DPS means Dividend per share (in absolute rupees) i.e. Rs.6/- per share.
Dividend rate is 300% and face value is Rs.2/-. Hence 300% of 2 is 6.
If ex-dividend date is 27.1.2016, even if you buy on 27.1.2016, you are not eligible for the dividend.