How to Earn Rs 13,08,672 From Just One Stock?
Have you ever considered getting a deposit of Rs 13,08,672 per year in your bank account by doing nothing?
Yeah. It’s possible.
And in this post, we’ll discuss how a long-term investor can earn over Rs 13,08,672 per year just by purchasing good stocks at a decent price and holding it for a very long time horizon.
Infosys stocks
Infosys became public in February 1993 and started issuing its shares at Rs 95 per share.
Since then, this company has given seven bonuses and one stock split. In simple words, it means that if you had bought 100 shares of Infosys in 1993, today you would own 51,200 shares.
Now, let us analyze its bonuses & splits for the last 25 years:
1993: 100 shares
1994: 200 shares (1:1 bonus on 30/06/1994)
1997: 400 shares (1:1 bonus on 18/06/1997)
1999: 800 shares (1:1 bonus on 25/01/1999)
1999: 1,600 shares (2:1 split on 30/11/1999)
2004: 6,400 shares (3:1 bonus on 13/4/2004)
2006: 12,800 shares (1:1 bonus on 14/4/2006)
2014: 25,600 shares (1:1 bonus on 10/10/2014)
2015: 51,200 shares (1:1 bonus on 24/4/2015)
Also read: Stock split vs bonus share – Basics of stock market
Capital Appreciation
Suppose you purchased 100 shares in 1993.
Your initial investment would have cost you: 100 shares x Rs 95 = Rs 9,500.
Today, the market price of one share of Infosys is Rs 1,181.
Net Appreciated Worth = Rs 1,181 * 51,200 = Rs 6,04,77,200
Worth over Rs 6.04 Crores today.
Your small investment of Rs 9,500 would be worth over Rs 6.04 Crores in 25 years.
Also read: Why Warren Buffet Suggests- ‘Price Is What You Pay, Value Is What You Get’?
Don’t forget the Dividends…
In the last 25 years, Infosys has given decent dividends to its shareholders. For simplicity, let’s calculate the dividends earned for the last two years only.
For the last two years, here are the annual dividends are given by Infosys to its shareholders:
2016: Rs 24.26
2017: Rs 25.56
Assuming that you bought 100 shares of Infosys in 1993, it would have turned out to be 51,200 shares by now.
Now, let us calculate the annual dividends.
Dividend (2016) = Rs 24.26 * 51,200 = Rs 12,42,112
Dividend (2017) = Rs 25.56 * 51,200 = Rs 13,08,672
Dividends worth Rs 13,08,672 in just an year.
The best part:
Even if you do not sell your shares, you can enjoy the dividends for the rest of your life. Plus capital appreciation on your assets too…
Also read: How ‘Not’ to Kill The Goose That Lays the Golden Eggs?
Conclusion: Invest for the long-term
This is the best example to show you the power of holding good stocks for long term.
Besides Infosys, there are a number of good stocks in the Indian share market which has given even better returns to its shareholder for over decades.
Overall, you can create an amazing wealth if you focus on buying amazing stocks at a decent price and have the patience to hold it for the long term.
Value investing works- may be not in the short term, but definitely in the long-term.
(Source: Infosys Website, Annual Reports, Corporate Announcements, Moneycontrol)
New to stocks? Confused where to begin? Here’s an amazing online course for beginners: ‘HOW TO PICK WINNING STOCKS?‘ This course is currently available at a discount.

Kritesh (Tweet here) is the Founder & CEO of Trade Brains & FinGrad. He is an NSE Certified Equity Fundamental Analyst with +7 Years of Experience in Share Market Investing. Kritesh frequently writes about Share Market Investing and IPOs and publishes his personal insights on the market.
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How to invest in shares
Hi Majid. I have written a detailed post on how to invest here– which I’m sure you’ll find useful. Cheers.
For now which stock you prefer to buy with such a great returns.
I am learning sir
I’m feed up ….I want some thing that give me a hope and I think share market is my hope may be.
The email says different values for FY14 and FY15.
The here it says different. Can you explain?
Hi Lakshay. Thank you for pointing out. If you notice again, the values changed from year 2004. This is because the company gave a bonus of 3:1 in 2004, which means that 1600 shares will turn out to be 6400 shares (not 4800 shares). I hope it clears out the doubt. Cheers!
Awesome post dude. I’m your fan now.
Thank you for your appreciating words Nikhil. Really glad to read your comment. Cheers!
I m intresred
Great. Keep Learning.
Kritesh Abhishek brother, Just landed on your website and feltin love just within short time of surfing over your site.
I really appreciate the way you wrote all those complex things in very simple words.
Keep writing brother.
I wants to invest 5 Lakh please say in which portfolio I can invest
I invest sip 5000