Q.A person holds 100 shares of Company X (face value ₹10, dividend rate 8%) and 50 shares of Company Y (face value ₹100, dividend rate 6%). Find the person's total annual dividend income from this portfolio.

Each company's dividend income is computed separately, using that company's own face value and rate, and the two are then added together.

Income from Company X

Dividend per share $= \dfrac{8}{100}\times10=₹0.80$.

Income from 100 shares:

Income from Company Y

Dividend per share $= \dfrac{6}{100}\times100=₹6$.

Income from 50 shares:

Total portfolio income

$₹80+₹300=₹380$ …

Applying Company X's dividend rate (8%) to Company Y's face value, or vice versa — a very common slip once a problem involves more than one company. Also adding the two companies' dividend RATES (8%+6%=14%) instead of their …