INOX India Ltd. and Nelco 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 NDTV Profit, the record date for both stocks is June 9, which is tomorrow, determining the eligible shareholders who will receive the dividend payment.
As reported by NDTV Profit, INOX India Ltd has announced a final dividend of ₹2.00 while Nelco Ltd has declared a final dividend of Re 1. The ex-dividend date, which mostly coincides with the record date, marks when the share price adjusts to reflect the upcoming payout, making it crucial for investors to understand the timing requirements.
According to NDTV Profit, given India's T+1 settlement cycle, shares purchased on the record date (June 9 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by June 8 will be the beneficiaries of the dividend distribution. This timing requirement ensures that shares must be held before the record date to qualify for the payout.
As reported by NDTV Profit, dividends are a way for companies to reward shareholders and are essentially a return on investment in the company's equity. The payments are made through final, interim, and special dividends, with dividends being taxable in the hands of shareholders. Companies are no longer required to pay the Dividend Distribution Tax (DDT), and the TDS on dividend income for resident individuals is 10% if the dividend amount exceeds ₹5,000 in a financial year.
