After 10% of DDT, which is the best dividend or growth?

He also reintroduced long term capital gains tax of 10 per cent on equity mutual funds. “Since they have to pay DDT, everybody is going for the growth option,” says Chirag Gokani, Founder, Wealthwiz Advisors. read more

For LTCG you pay 10% as tax but only after the initial tax free slab of 1L. If there is no tax on dividend income but still investor pays 10% as DDT. So in case of dividend option, investors are surely paying the 10% as DDT but in case of growth option, there is no tax if the income is under 1L. Even if the returns are above 1L, the LTCG tax of 10% is only on the amount above 1L. read more

DDT is 10%; DDT Surcharge is 12%; Health & Education Cess of 4%; DDT = 10% * (1+12%) * (1+4%) = 11.648%; Now DDT is charged on the concept of “Grossing Up”. We would give an example to make the concept more clear. Suppose the investor receives Dividend of Rs 100 from his equity fund. As the fund has to deduct DDT before paying dividend. read more

On January 10 th, Hormel raised its dividend by 10%, to $0.75 per share on an annual basis. The forward dividend yield for Hormel stock is 2.3%. Hormel is not a high-yield dividend stock, but it makes up for this with high dividend growth rates. Hormel has increased its dividend each year, for more than five decades. read more