- Shares of Indian Bank, Infosys, Tata Chemicals, and others offer dividends with June 10 record date
- Indian Bank announced Rs 18.25 per share final dividend; Infosys declared Rs 25 per share final dividend
- Tata Elxsi leads with Rs 75 per share final dividend among Tata Group companies
Shares of Indian Bank, Infosys Ltd. Seshasayee Paper and Boards Ltd. Tata Chemicals Ltd. Tata Elxsi Ltd. Tata Investment Corporation Ltd., Sunshield Chemicals Ltd., ACC Ltd. will be of interest on Friday, 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.
Indian Bank has announced a final dividend of Rs 18.25 per share, while Infosys Ltd. has declared a final dividend of Rs 25 per share. Seshasayee Paper and Boards Ltd will pay a final dividend of Rs 2 per share.
Among Tata Group companies, Tata Chemicals Ltd has announced a final dividend of Rs 11 per share, Tata Elxsi Ltd has declared a final dividend of Rs 75 per share, the largest of the day, and Tata Investment Corporation Ltd will pay a final dividend of Rs 3.40 per share.
The record date for all these dividends is June 10.
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T+1 Settlement Cycle
Given India's T+1 settlement cycle, shares purchased on the record date (June 10 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by June 9 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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