In simple terms, a record date is the cut-off date established by a company to determine which shareholders are entitled to receive dividends, bonus shares, or other rights. Investors who hold shares in the company as of this date will be entitled to receive the dividend payout, which is typically paid out within a few weeks after the record date.
It is important to note that even if an investor buys the stock after the record date, they will not receive the dividend; the dividend will be credited to the shareholder who held the stock as of the record date.
Among the companies that have set Thursday, July 17, as the record date are:
1. Coromandel International
- Final Dividend: 600% at Rs. 6 per share
- Special Dividend: 300% at Rs. 3 per share
2. GHCL
- Final Dividend: 120% at Rs. 12 per share
3. Graphite India
- Final Dividend: 550% at Rs. 11 per share
4. Oriental Hotels
- Final Dividend: 50% at Rs. 0.5 per share
5. PDS Ltd
- Final Dividend: 85% at Rs. 1.7 per share
Dividends are a way for companies to distribute a portion of their earnings to shareholders. This distribution typically comes in the form of cash or additional shares, known as stock dividends.
Dividends are often paid out by companies that have stable earnings and are seeking to reward their investors for their continued support. The dividend payout serves as an incentive for investors to hold on to their shares, as it provides a steady stream of income in addition to any potential capital appreciation.
The dividend percentages mentioned reflect the value shareholders will receive relative to the nominal value or face value of the shares. For instance, a dividend of 600% means that for every share, a shareholder will receive Rs. 6, which is 600% of the nominal face value of the share.
These dividend announcements are part of the companies’ efforts to reward their investors for holding on to their shares. Investors are advised to keep track of the record dates, as they are essential for ensuring eligibility for the dividend payouts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
