Shares of Hatsun Agro Product Ltd., Dhampur Sugar Mills Ltd., GPT Infraprojects Ltd., and IRB Infrastructure Developers Ltd. will be of interest on Monday as the day marks the last session for retail investors to buy shares to qualify for receiving the dividend before the stock goes ex/record-date. According to reports from Essential Business Intelligence, the record date determines the eligible shareholders who will receive the dividend payment, while the ex-dividend date, which mostly coincides with the record date, marks when the share price adjusts to reflect the upcoming payout.
As reported by Essential Business Intelligence, Hatsun Agro Product Ltd. has announced the biggest interim dividend of the lot for the day of ₹10, followed by Dhampur Sugar Mills Ltd. who has announced an interim dividend of ₹2. GPT Infraprojects Ltd. has announced an interim dividend of Re 1, while IRB Infrastructure Developers Ltd. has announced an interim dividend of ₹0.05. Dividends are a way for companies to reward shareholders, with such payments being made through final, interim, and special dividends.
According to Essential Business Intelligence, given India's T+1 settlement cycle, shares purchased on the record date (May 26 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by May 25 will be the beneficiaries. The settlement cycle ensures that dividend eligibility is determined by the previous trading day's ownership rather than the record date itself.
As reported by Essential Business Intelligence, 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 ₹5,000 in a financial year. Dividends represent a portion of profits that companies distribute to shareholders, essentially returning investment made in the company's equity.
