Shares of Vedanta Ltd. and Housing & Urban Development Corp will be of interest on Friday, as it marks the last session for investors to buy shares to qualify for receiving the interim dividend before the 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.
Vedanta has declared a third interim dividend of Rs 11 per share for the financial year 2025-26. The total amount to be disbursed from this interim dividend by the company adds up to Rs 4,300 crore.
HUDCO will give shareholders Rs 1.25 per share as interim dividend. The process of payment will be completed within 30 days of its declaration.
Given India's T+1 settlement cycle, shares purchased on the record date (March 28 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by March 27 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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