Can anyone explain what the point of dividends are? If I have 100 shares worth totally 100,000 and I
Can anyone explain what the point of dividends are? If I have 100 shares worth totally 100,000 and I get a dividend of 50 Rs per share, I now have 50,000 rupees as dividend and shares worth 50,000, since share price falls after dividend payout. But now I need to pay income tax on the dividends and can't even deduct the cost of buying the shares (as you can in CGT). So its essentially like selling shares and losing more money in the process due to tax