- Shares of 14 companies will trade ex-dividend on May 29, marking last buy date for dividends
- Advani Hotels declares interim dividend of Rs 0.80 per share, Bajaj Auto final dividend Rs 150
- Bank of India, Home First Finance, ICICI Lombard announce dividends ranging Rs 4.65 to Rs 7
Shares of Advani Hotels & Resorts (India) Ltd., Bajaj Auto Ltd., Bank of India, BCPL Railway Infrastructure Ltd., Eris Lifesciences Ltd., GlaxoSmithKline Pharmaceuticals Ltd., Home First Finance Company India Ltd., ICICI Lombard General Insurance Company Ltd., JB Chemicals & Pharmaceuticals Ltd., S Chand and Company Ltd., Torrent Pharmaceuticals Ltd., UNO Minda Ltd. will be of interest on Wednesday, 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.
Advani Hotels & Resorts (India) Ltd. has declared an interim dividend of Rs 0.80 per share. Meanwhile, Bajaj Auto Ltd. has announced a final dividend of Rs 150.00 per share.
In the banking and financial services sector, the Bank of India has declared a dividend of Rs 4.65 per share. Home First Finance Company India Ltd. has announced a final dividend of Rs 5.20 for its shareholders. ICICI Lombard General Insurance Company Ltd. will be paying a final dividend of Rs 7.00 per share.
Within the pharmaceutical and healthcare industry, several companies have also declared dividends. Eris Lifesciences Ltd. has announced an interim dividend of Rs 7.21 per share. GlaxoSmithKline Pharmaceuticals Ltd. has declared a final dividend of Rs 57.00 per share. JB Chemicals & Pharmaceuticals Ltd. will be paying a final dividend of Rs 9.30 per share, and Torrent Pharmaceuticals Ltd. has announced a final dividend of Rs 9.00 per share.
Other companies that have announced dividends include BCPL Railway Infrastructure Ltd, which has declared a final dividend of Re 1.00 per share. S Chand and Company Ltd. has announced an interim dividend of Rs 4.00 per share. Finally, UNO Minda Ltd. has declared a final dividend of Rs 1.75 per share.
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T+1 Settlement Cycle
Given India's T+1 settlement cycle, shares purchased on the record date (May 29 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by May 27 (May 28 is a market holiday on account of Bakrid) 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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