If you are planning to earn dividends from the stock market then today is a very important day for you. Today is the last chance to buy shares of 43 companies including Airtel, Hero MotoCorp, Tata Investment Corporation, HDFC AMC. All these companies will go ex-dividend on 24th July. This means that only the investors who have purchased these shares till date will be entitled to receive the dividend declared by the company.
According to stock exchange data, a total dividend of about Rs 1,127 crore will be distributed to investors by these 43 companies. In such a situation, this is being considered an important opportunity for investors seeking dividend income.
What is ex-dividend date?
When a company announces dividend, it sets a record date. Only those investors whose names are in the records of the company on the record date are eligible to receive the dividend. Since the settlement of shares in the Indian stock market is on T+1 basis, it is necessary to buy shares one trading day before the record date. This day is called ex-dividend date. Investors who buy shares on or after the ex-dividend date do not get the benefit of that dividend.
Investors keep an eye on these big companies
This time many big and blue chip names are included in the companies giving dividends. These include companies like Bharti Airtel, Hero MotoCorp, HDFC Asset Management Company (HDFC AMC), Tata Investment Corporation, Schaeffler India, KSB Limited, Kirloskar Brothers, Sundaram Fasteners and Cyient DLM. These companies have declared dividend after the approval of their respective boards.
Experts say that dividend is a good medium of providing regular income to investors. However, instead of investing in a stock just for the purpose of getting dividends, one should also assess the financial performance, future prospects and valuation of the company.
Keep these things in mind for dividend
It is important for investors to understand that on the ex-dividend date, the share price may often open below or equal to the dividend amount. Therefore, investing only for the greed of dividend is not always a profitable deal. Investment decisions should be taken keeping in mind the company’s strong fundamentals, profit potential and long-term prospects.
If you want to take advantage of the dividends of these companies, then it is important to buy shares today. From July 24, all these shares will trade ex-dividend and investors purchasing after this will not get the benefit of the dividend declared this time. Therefore, today’s trading session is considered very important for investors planning dividend based investments.
