High payouts appear timed before split, favoring insiders with significant ownership. Hah! Insiders want to grab as much money as they can in whatever way they can 🙃 - before the firm splits into 5 entities with a weaker cashflow-reserve which means less value for the retail investors in the long term.
“If you torture the data long enough, it will confess to anything”.- -Ronald H. Coase, Nobel Prize-winning economist.
One of the hardest parts about investing by small investors’ like me,is that it’s really impossible to understand the Corporate Juggernaut.The Side Note by ZERODHA VARSITY really makes such terms investor class and investor worthy. Today’s Note demystifies —“How can dividends exceed earnings? by real-life example of Vedanta’s 3-year average dividend payout ratio of 243%.
I’ve learned a lot from Zerodha Varsity posts,such as Meme Stocks, Chocolates, Swiss secrecy etc etc and admire their Free Services!
High payouts appear timed before split, favoring insiders with significant ownership. Hah! Insiders want to grab as much money as they can in whatever way they can 🙃 - before the firm splits into 5 entities with a weaker cashflow-reserve which means less value for the retail investors in the long term.
Eat! Eat! Eat! Before others join the party! 😁
As per 2(22)b of Income tax act, this amounts to distribution of assets (cash) tantamount to release of accumulated profits
“If you torture the data long enough, it will confess to anything”.- -Ronald H. Coase, Nobel Prize-winning economist.
One of the hardest parts about investing by small investors’ like me,is that it’s really impossible to understand the Corporate Juggernaut.The Side Note by ZERODHA VARSITY really makes such terms investor class and investor worthy. Today’s Note demystifies —“How can dividends exceed earnings? by real-life example of Vedanta’s 3-year average dividend payout ratio of 243%.
I’ve learned a lot from Zerodha Varsity posts,such as Meme Stocks, Chocolates, Swiss secrecy etc etc and admire their Free Services!
Thank you for the validation, Sheo Ratan Agarwal :)
https://open.substack.com/pub/anantchaudhary/p/17-stocks-making-moves-this-week?utm_source=share&utm_medium=android&r=qtq2s