- LIC shares will be of interest as June 24 is the last day to buy for dividend eligibility
- LIC declared a final dividend of Rs 10 per equity share with record date on June 25
- Q4 FY26 net profit rose 23.2% to Rs 23,420 crore compared to last year
Shares of Life Insurance Corporation of India (LIC) will be of interest on Wednesday, 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.
LIC has announced a final dividend of Rs 10 per equity share, as per an exchange filing from the company. The record date for determining the eligibility of the investors for the dividend's payout is on June 25.
LIC reported a 23.2% year-on-year increase in its net profit for the fourth quarter of FY26, according to a regulatory filing on Thursday. The insurance giant posted a consolidated bottom-line of Rs 23,420 crore, compared to Rs 19,013 crore in the year-ago period. Net premium income rose 11.6% to Rs. 1.7 lakh crore from Rs. 1.5 lakh crore in the corresponding quarter of the last year.
ALSO READ: LIC Q4 Results: Net Profit Rises 23%, Asset Quality Improves; Dividend Declared
T+1 Settlement Cycle
Given India's T+1 settlement cycle, shares purchased on the record date (June 25 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by June 24 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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