Shares of Ashok Leyland Ltd., Foseco India Ltd., Monarch Surveyors and Engineering Consultants Ltd., Navneet Education Ltd., Remsons Industries Ltd., will be of interest on Tuesday as the day marks the last session for retail 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.
Ashok Leyland Ltd. has announced an interim dividend of Rs 2.5 per share. Foseco India Ltd., which has the highest of the lot for today, has declared a final dividend of Rs 25 per share.
Monarch Surveyors and Engineering Consultants Ltd. has announced a final dividend of Rs 1.6 per share while Navneet Education Ltd. has declared an interim dividend of Rs 1.5 per share. Remsons Industries Ltd. has announced an interim dividend of Rs 0.2 per share.
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T+1 Settlement Cycle
Given India's T+1 settlement cycle, shares purchased on the record date (June 3 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by June 2 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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