New Delhi, Oct. 14 -- Indian investors who hold US stocks can earn dividends, typically drawn from a company's profits or accumulated cash. This periodic payout is usually made in cash per share, though some companies may issue additional shares instead.

However, not all US-listed companies pay dividends. In case a company, let's say Apple announces a dividend, you are required to have ownership of that stock before the record date to be eligible for the payout.

The overall dividend payout is calculated by multiplying the dividend amount by the number of shares you own. So, if the company pays $1 per share and you own 100 shares, you will receive $100 in your account.

If you are an Indian resident for tax purposes and hold US stocks in...