Shares of Indian Railway Catering and Tourism Corporation Ltd., Oil India Ltd., Info Edge (India) Ltd., and MRF Ltd. will be of interest on Thursday, as the day marks the last session for investors to buy shares to qualify for receiving the dividend before the stock goes ex/record-date.
The record date determines the eligible shareholders who will receive the dividend payment. The ex-dividend date, which mostly coincides with the record date, marks when the share price adjusts to reflect the upcoming payout.
IRCTC board announced an interim dividend of Rs 5 per share. The record date to determine the shareholders eligible for the dividend payout has been fixed as Nov. 21.
While Oil India has announced an interim dividend of Rs 3.50 per share, Indo Edge announced a dividend of Rs 2.40 apiece. MRF approved an interim dividend of Rs 3 each and Sonata Software Ltd. will issue a dividend of Rs 1.25 per share. IL&FS Investment Managers Ltd. has announced an interim dividend of Rs 0.50 per share.
The other companies to be in focus include Acceleratebs India Ltd., Bhatia Communications & Retail (India) Ltd. and Career Point Edutech Ltd., Gabriel India Ltd., Manba Finance Ltd., M Lakhamsi Industries Ltd., Mobavenue AI Tech Ltd., Panchsheel Organics Ltd., Polyplex Corporation Ltd., QGO Finance Ltd., Spice Islands Industries Ltd., Supra Pacific Financial Services Ltd. and Xtglobal Infotech Ltd.
Given India's T+1 settlement cycle, shares purchased on the record date (Nov. 21 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by Nov. 20 will be the beneficiaries.
Dividends are a way for companies to reward shareholders. It is the portion of profits that a company distributes to its shareholders and is essentially a return on the investment shareholders make in the company's equity. Such payments are made through final, interim, and special dividends.
Dividends are taxable in the hands of the shareholders, and companies are no longer required to pay the Dividend Distribution Tax (DDT). The TDS on dividend income for resident individuals is 10% if the dividend amount exceeds Rs 5,000 in a financial year.
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