- Mazagon Dock, Hindustan Copper, and Mahanagar Gas shares are key for dividend eligibility on Feb 13
- Mazagon Dock declared Rs 7.5 interim dividend, payable by March 7 to eligible investors
- Hindustan Copper, Esab India, MRF, NMDC, and Mahanagar Gas also announced interim dividends
Shares of Mazagon Dock Shipbuilders Ltd., Hindustan Copper Ltd., Mahanagar Gas 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.
Mazagon Dock board announced an interim dividend of Rs 7.5 per share. The record date for determining the eligibility of investors is Feb. 13. The dividend will be paid to the concerned investors by March 7.
Hindustan Copper has announced an interim dividend of Rs 1 per share and Esab India of Rs 25 apiece. MRF Ltd. approved an interim dividend of Rs 3 and NMDC Ltd. will issue a dividend of Rs 2.5 per share. Mahanagar Gas has announced an interim dividend of Rs 12 per share.
The other companies to be in focus include BEML Ltd., BLS International Services Ltd., Gulf Oil Lubricants India Ltd., K.P.R. Mill Ltd., Minda Corp., Sonata Software Ltd., and VRL Logistics Ltd.
Given India's T+1 settlement cycle, shares purchased on the record date (Feb. 13 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by Feb. 12 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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