Coal India Interim Dividend: Last Day To Buy Shares To Qualify Before Record Date

Shares of Coal India Ltd. will be of interest on Tuesday, as it marks the last session for investors to buy shares to qualify for receiving the dividend before the stock goes ex/record-date.

For a dividend, investors should note the record date that determines shareholder eligibility.

Under India's T+1 settlement cycle, shares purchased on the record date itself will not qualify for the dividend payment. Hence, if the record date of a dividend stock is Aug. 6, then shares must be purchased by Aug. 5.

The ex-dividend date, which typically coincides with the record date, marks when the share price adjusts to reflect the upcoming payout.

Coal India declared its first interim dividend of Rs 5.5 per equity share for the current fiscal last week. Payment of the dividend will be made by Aug. 30, according to an exchange filing. The company is likely to disburse a total of Rs 3,390 crore in dividend payout.

The central government owns 63.13% equity in the PSU and hence will receive a dividend worth nearly Rs 2,140 crore.

Retail investors are set to get a dividend payment worth Rs 141 crore. Coal India had over 22 lakh small investors with a combined stake of 4.18%.

Dividends are a way for companies to reward their shareholders. Such payouts can be annual through a final dividend or a special and interim dividend.

Coal India has a dividend yield of 4.3% and is among the most prominent PSUs periodically issuing dividends.

Shares rose as much as 1.6% to Rs 380.7 apiece on the NSE early in the session, compared to 0.2% decline in the benchmark Nifty 50.