- Shares of Hatsun Agro, Dhampur Sugar, GPT Infraprojects, and IRB Infrastructure will see interest on Monday
- Monday is the last day for retail investors to buy shares to qualify for dividends before the ex/record date
- Hatsun Agro declared the highest interim dividend of Rs 10 among the four companies on the record date
Shares of Hatsun Agro Product Ltd., Dhampur Sugar Mills Ltd., GPT Infraprojects Ltd., and IRB Infrastructure Developers Ltd. 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.
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.
Hatsun Agro Product Ltd. has announced the biggest interim dividend of the lot for the day of Rs. 10 followed by Dhampur Sugar Mills Ltd. who has announced an interim dividend of Rs. 2 GPT Infraprojects Ltd. has announced an interim dividend of Re 1 while IRB Infrastructure Developers Ltd. has announced an interim dividend of Rs. 0.05.
T+1 Settlement Cycle
Given India's T+1 settlement cycle, shares purchased on the record date (May 26 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by May 25 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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