A dividend is a part of a company's profits paid to shareholders. Dividends are usually paid quarterly, though they can also be distributed monthly or annually.
Companies issue dividends for various reasons like financial stability and to attract and retain investors. However, not all companies pay dividends. Generally, companies that do pay dividends tend to be larger, well-established businesses with steady growth.
If you own 100 shares of a stock trading at Rs 100 per share and it pays a 25% dividend, you would receive Rs 2500.
There are key dates associated with dividends:
- Declaration date: When the company announces that it will pay a dividend.
- Ex-dividend date: The last day to buy the stock to be eligible for the upcoming dividend.
- Record date: The day by which shareholders must be listed on the company’s books to receive the dividend.
- Payment date: When the dividend is actually paid out to shareholders.
- Settlement date: The day the stock transaction is completed, typically two days after the purchase.
Here is a list of companies that will be paying dividends in the month of November :
Dividends can be categorised into three primary types: interim, final, and special.
Interim Dividend
An interim dividend is distributed before the financial year ends, often on a monthly or quarterly basis. These payments are generally smaller than final dividends and are drawn from the company’s retained earnings.
Final Dividend
A final dividend is issued after the conclusion of the financial year, following the completion of the company's audited financial reports. These dividends tend to be larger than interim dividends and show the company’s overall financial performance for the year.
Special Dividend
A special dividend is a one-off payment made in addition to regular dividends. It is issued when a company experiences high profits or surplus cash. Since these dividends are not recurring, they signal a unique financial event or windfall for the company.
Let’s understand the companies in detail:
Procter & Gamble Health Ltd: It focuses on pharmaceuticals and health supplements in India with products for digestive health, vitamins, and supplements.
Gillette India Ltd: It offers personal grooming products like shaving gel, razors, and oral care under brands like Gillette, Venus, and Oral-B.
Procter & Gamble Hygiene and Health Care Ltd: It operates in the feminine hygiene and healthcare space with products like sanitary napkins and healthcare goods under the Vicks brand.
Zee Entertainment Enterprises Ltd: It is a leading media and entertainment company in India with television channels, digital platforms, and movie production services in multiple languages.
Navin Fluorine International Ltd: It is a chemical manufacturing company that manufactures fluorine products and serves pharmaceuticals and refrigeration industries.
Hindustan Unilever Ltd: HUL offers a wide range of consumer products in personal care, home care, and F&B.
Nippon Life India Asset Management Ltd: It manages mutual funds and other asset management services for retail and institutional investors.
Alldigi Tech Ltd: It offers digital services, IT consulting, and software development.
Laurus Labs Ltd: It's a pharmaceutical and biotechnology company with generic APIs, formulations, and custom manufacturing services.
CARE Ratings Ltd: It is a credit rating agency that provides ratings, research, and risk assessment services to corporates, financial institutions, and governments.
Dr Lal Pathlabs Ltd: The company has a diagnostic chain that offers pathology and radiology services.
Colgate-Palmolive Ltd: They manufacture and market toothpaste, toothbrushes, and mouthwashes under the Colgate brand.
Patanjali Foods Ltd: It's an FMCG company that sells a range of edible oils, dairy products, and health foods under the Patanjali brand.
Kajaria Ceramics Ltd: It is India’s largest ceramic and vitrified tiles manufacturer.
Oberoi Realty Ltd: A real estate company that's into premium residential, commercial, retail, and hospitality projects across Mumbai and other cities.
Manba Finance Ltd: It's an NBFC that provides two-wheeler loans and other consumer finance services primarily in Maharashtra.
Conclusion
Dividends are distributed by companies to incentivise shareholders to retain their holdings and maintain their association with the company. It is also a gesture of appreciation for the shareholders' ongoing trust and support.
However, if you are seeking stable income streams through dividend-yielding stocks, try to carefully evaluate trending dividend-paying stocks in India and make sure you hold them before the record date.
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