Dividends on your stocks are like rewards on your investment. Dividends on publicly listed stocks come in the form of bonus that companies pay to eligible shareholders from their earnings. Dividends announced by companies can be in various forms such as cash, cash equivalents, shares, assets, etc.
They are mostly seen as a sign of goodwill, however, it is up to the company to share a portion of their profit with shareholders invested in their stocks listed on exchanges. Thereby, there is no guarantee that companies will continue to pay dividends to their unitholders. Generally, companies with a strong track record and well established.
However, in dividends, one must know some key factors such as the record date, payment date, and ex-dividend date.
Generally, the ex-dividend date for a stock is the business day before the record date of declaring eligible shareholders for the payout. This also means that investors who buy the stock on the ex-dividend date or later will not be eligible for dividends announced for a particular fiscal by the company. Simply put, ex-dividend dates are also the day the dividend eligibility is stated to expire.
Five companies have announced an interim dividend for shareholders and will turn ex-dividend this week. If you are planning to reap the benefits of dividends, these are the dates you should keep a note of.
Gateway Distriparks:
The company’s board approved the first interim dividend of ₹1.25 per equity share having a face value of ₹10 each (12.5%) for the financial year FY23 to shareholders. The record date is fixed on May 5 and hence the shares will turn ex-dividend on May 4.
Sarda Energy & Minerals:
The company announced an interim dividend of ₹7.50 per equity share for the financial year FY22. The record date is set for May 6. Hence, the shares will turn ex-dividend on May 5.
Colgate-Palmolive (India):
The FMCG’s board approved a second interim dividend of ₹21 per equity share having a face value of Re 1 each for financial year FY22.
The said interim dividend will be paid on and from May 25, 2022, to those shareholders whose names appear in the Register of Members of the Company as on the Record date i.e. May 07, 2022.
Hence, Colgate shares will be ex-dividend on May 5.
Vedanta:
Vedanta board has announced the first interim dividend of ₹31.5 per equity share i.e. 3,150% of the face value of Re 1 per share for the financial year FY23 amounting to a whopping ₹11,710 crore.
The record date for payment of the dividend is set on May 9. That means, the shares will turn ex-dividend on May 6. The markets will be closed on May 7 and May 8 due to the weekend.
Crisil:
The rating agency’s board of directors approved an interim dividend of ₹7 per equity share having a face value of Re 1 each for the financial year ending December 31, 2022. The dividends will be paid on May 19. But the company has fixed a record date of May 9 for recognising eligible shareholders. That means, the shares will turn ex-dividend on May 6 as well.
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