Hexaware Technologies Ltd., CyberTech Systems and Software Ltd. and Rashtriya Chemicals and Fertilizers Ltd. are the stocks that will trade ex-dividend this week.
Investors eyeing dividend payouts must keep a close watch on these dates to ensure eligibility. To be eligible for dividends, investors should note the record date that determines shareholder eligibility.
Under India's T+1 settlement cycle, shares purchased on the record date itself will not qualify for the dividend payment. Suppose, if the record date of a dividend stock is Oct. 9, then shares must be purchased by Oct. 8.
The ex-dividend date, which precedes the record date, marks when the share price adjusts to reflect the upcoming payout.
Smallcap software company CyberTech Systems has declared a special dividend Rs 20 per share. The record date is set as Oct. 6.
Hexaware Tech will pay an interim dividend of Rs 5.75 per share. The record date is set as Oct. 10. The company will shell out Rs 350 crore through the dividend.
PSU company Rashtriya Chemicals has announced a final dividend of Rs 1.32 per share. The total payout aggregates to nearly Rs 73 crore. The central government owns 75% of the equity. The record date is Oct. 10.
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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