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A dividend is the distribution of reward from a portion of the company's earnings and is paid to a class of its shareholders.

Dividends are decided and managed by the company's board of directors, though they must be approved by the shareholders through their voting rights


Calculation of dividends

find out the company's - dividend per share (DPS), which is the amount paid to every investor for each share of stock they hold. Next, multiply the DPS by the number of shares you hold in the company's stock to determine approximately what you're total payout will be


They pay dividends from their profits to reward their shareholders for providing them the capital to run the business. It is up to the board of directors to determine what percentage of the earnings they use to pay dividends (or buybacks) and how much they should retain in the business.

Puru BhatnagarTop Contributor
Business Analyst, Entrepreneur, Business developer, Marketer

Raising capital is a tedious task and requires lot of patience and dedication, be it in start or either you want to expand your business, the reason is that any investor would only want to see who their money will grow and in how much time they would be able to get their money back with profit.

So I would like to answer this question taking two scenario when your business is in starting phase and other is when it has gone some amount of traction from the market .

When your business is in nascent phase:

In this phase you have to face a lot of struggle and challenges, it might be you have to go to around 200+ sources and even won't be able to get any amount of funding, but then you have to introspect your venture and try hard for it.

In this phase, you can either use your own saving or can get some funding from your friend and family and use it to give a kick start for your venture.

Further you can even approach to some venture capital to ask for funding( but in today's time generally VC firms like to invest in established startups who had gain certain traction from the market).

Else you can even approach to bank and ask for loans for your startups.

When you have established venture:

In this phase it would be more easy to raise funds from some established VC firms, you can go for series... (More)

Build up a positive business relationship with your bank. Look for your investor's recommendation even now and again where you are not looking for reserves. You may locate that each time you go to your bank you address an alternate credit official, so you should know them all.

On the off chance that you need the bank to check out your business, at that point you need to look into theirs.

Know your investor— 

Check out your investor as an individual. Request that your financier clutch your record on the off chance that the person in question is advanced. At the point when you go to see your investor, have your field-tested strategy and budgetary papers prepared. Make it simple for your investor to perceive what you need and why. The bank needs to limit its hazard as to you and your business. This is the place you need to sell yourself.

Know your bank—

Know and comprehend your bank's yearly report. Know your bank's business course and plan. Know the bank's lines of power. Jump on the bank's mailing list. It's a simple method to stay aware of bank news.


Go to a bank-supported workshop—

Go to your bank's classes on business loaning. This will show you how your bank works as far as loaning arrangements. By doing this, you likewise demonstrate that you have an enthusiasm for what the bank is doing.