Shares of Zensar Technnologies Ltd., Jindal Stainless Ltd., Orient Electric Ltd. and IIFL Finance Ltd. will be of interest 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.
Zensar Technologies board announced an interim dividend of Rs 2.4 per share. The record date to determine the shareholders eligible for the dividend payout has been fixed as Jan. 29.
While Jindal Stainless has announced an interim dividend of Rs 1 per share, Orient Electric announced a dividend of Rs 0.75 apiece. IIFL Finance approved an interim dividend of Rs 4 each.
India Motor Parts & Accessories Ltd. announced an interim dividend of Rs 10 per share and Shanthi Gears announced an interim dividend of Rs 3 per share.
Given India’s T+1 settlement cycle, shares purchased on the record date (Jan. 29 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by Jan. 28 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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