Lakshmi Mills pays a nice dividend.

At another time, Dad asks me whether he continues to hold Lakshmi Mills. Sold it in May about Rs 4000 per share, Dad I say. That’s too bad, they just paid a 20% dividend he says, expecting to me to be mortified yet again!  But I am ready for this one. Dividends in India are paid on face value fatherji, I say (in teacher to student mode, now). That 20% dividend on a face value of Rs 100 is actually 0.05% in terms of dividend yield, hardly a return worth mentioning. On 500 shares, that is a lakh of Rupees Badri, he says firmly, a lot of money in India (I know that look, spendthrift NRI using rupees as monopoly money!). But the price is down Rs 1000 per share since we sold it Dad, the capital gain after taxes is much more than the dividend you have given up. But he is not convinced.