- Procter & Gamble Health offers Rs 160 dividend per share including special and interim payouts
- Last day to buy shares for dividend eligibility is February 11, as record date is February 12
- Shares bought on record date February 12 are not eligible due to India's T+1 settlement cycle
Procter & Gamble Health Ltd. could be of interest to retail investors on Wednesday, 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.
P&G Health board has announced a bumper dividend of Rs 160 per share this time. This includes a special dividend of Rs 50 and interim dividend of Rs 110 per share. The record date to determine the shareholders eligible for the dividend payout has been fixed as Feb. 12.
"Shareholders holding shares in dematerialized mode, are requested to update their records such as tax residential status, permanent account number (PAN) and register their email addresses, mobile numbers and other details with their relevant depositories through their depository participants," the company said.
Given India's T+1 settlement cycle, shares purchased on the record date (Feb. 12 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by Feb. 11 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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