Power of right investment, right time, right sectors/stocks, power of Dividends

Power of right investment, right time, power of Dividends

If someone invested 1 Cr in Vedanta at 40/share in April 2020, he is getting 1 Cr as dividend every year including capital appreciation of 1350%.

Power ofDividend audit

Using the actual dividend per share declared by Vedanta:

Financial year

Dividend/share

Dividend on 2.5 lakh shares

FY 2020-21

₹9.50

₹23.75 lakh

FY 2021-22

₹45.00

₹1.125 crore

FY 2022-23

₹101.50

₹2.5375 crore

FY 2023-24

₹29.50

₹73.75 lakh

FY 2024-25

₹43.50

₹1.0875 crore

FY 2025-26

₹34.00

₹85.00 lakh

Total

₹263.00/share

₹6.575 crore

These figures come from Vedanta's official dividend history and annual reports. For example, FY2022-23 consisted of five dividends totalling ₹101.50/share, while FY2024-25 totalled ₹43.50/share. �

Vedanta Limited +2

For FY2025-26, Vedanta paid ₹7 + ₹16 + ₹11 = ₹34/share through March 2026. �

Vedanta Limited

This is the really interesting part

If the investor genuinely had 2.5 lakh shares, the dividend income would have looked like:

2020-21: ₹23.75 lakh

2021-22: ₹1.125 crore

2022-23: ₹2.5375 crore

2023-24: ₹73.75 lakh

2024-25: ₹1.0875 crore

2025-26: ₹85 lakh

So cumulative gross dividends would be approximately:

₹6.575 crore

And that's without selling a single share.

But your blog's statement that the investor is receiving ₹1 crore every year is not accurate.

They would need Vedanta to pay ₹40 dividend per share every year:

2,50,000 × ₹40 = ₹1 crore

That happened approximately in some years, but not every year.

For example:

FY2022-23: ₹101.50/share → ₹2.54 crore

FY2024-25: ₹43.50/share → ₹1.09 crore

FY2023-24: ₹29.50/share → ₹73.75 lakh

FY2025-26: ₹34/share → ₹85 lakh

So the actual story is arguably more interesting than the simplified blog claim:

A ₹1 crore investment at ₹40 would represent 2.5 lakh shares, and those shares generated about ₹6.58 crore of gross dividends over FY2020-21 through FY2025-26, based on actual declared dividends.

However, there is one major issue we need to settle before calculating your total return: ₹40 was not the actual April 2020 traded price.

If you want, I'll do the next audit properly:

April 2020 actual investment price → 2.5 lakh shares → every dividend → current share value → total wealth today → actual CAGR. Dividends.