Shares of Shipping Corporation of India Ltd., Hikal Ltd., IOL Chemicals & Pharmaceuticals Ltd. will be of interest on Tuesday 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.
Shipping Corporation of India Ltd. board announced an interim dividend of Rs 3.5 per share. The “Record Date” for the purpose of ascertaining the eligibility of shareholders for payment of Second Interim Dividend is tomorrow and the said Second Interim Dividend would be paid within 30 days from the date of its declaration.
Majestic Auto Ltd. has announced an interim dividend of Rs 35 per share. IOL Chemicals & Pharmaceuticals Ltd. has announced an interim dividend of Rs 1 per share while International Gemmological Institute India Ltd. approved an interim dividend of Rs 2.5 per share.
The other companies to be in focus include Mrs. Bectors Food Specialities Ltd., Hikal Ltd., IRCON International Ltd., Vibrant Global Capital Ltd.
Shareholders Eligible For Dividend
Given India’s T+1 settlement cycle, shares purchased on the record date (Feb. 16 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by Feb. 13 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.
ALSO READ: Stock Market Today: All You Need To Know Before Going Into Trade On Feb. 16
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