Shares of Bajaj group firms, Maharashtra Scooters, Welspun Corp and more will be of interest on Monday, 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.
Bajaj Holdings & Investment has declared a final dividend of Rs 80 per share and, in addition, announced a special dividend of Rs 50 per share. Bajaj Finance, another key arm of the group, also joined the dividend announcements, proposing a final dividend of Rs 6 per share for its investors. Bajaj Finserv joined list with a modest final dividend of Re 1.50 per share.
Outside the Bajaj stable, Maharashtra Scooters declared a final dividend of Rs 60 per share, marking one of the higher payouts among the companies in this round of announcements. Meanwhile, Welspun Corp announced a final dividend of Rs 5 per share. The record date for all of these is June 30.
T+1 Settlement Cycle
Given India's T+1 settlement cycle, shares purchased on the record date (June 30 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by June 29 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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