Attention dividend investors! Five prominent Indian companies are set to trade ex-dividend tomorrow, marking a crucial date for shareholders looking to secure their dividend payments. If you're holding these stocks or considering adding them to your portfolio, here's what you need to know.
The Complete List of Dividend-Paying Stocks
Here are the five companies that will trade ex-dividend on Thursday:
- Hindustan Petroleum Corporation Limited (HPCL) - ₹15.00 per share dividend
- TD Power Systems Ltd - ₹1.25 per share dividend
- Karnataka Bank Ltd - ₹5.50 per share dividend
- Shreyas Shipping & Logistics Ltd - ₹7.50 per share dividend
- Gujarat Ambuja Exports Ltd - ₹2.00 per share dividend
What Ex-Dividend Date Means for Investors
The ex-dividend date is a critical milestone in the dividend distribution process. Investors who purchase shares on or after this date will not be eligible to receive the declared dividend. To qualify for the dividend payment, you must have bought the shares before the ex-dividend date.
Typically, stock prices adjust downward on the ex-dividend date to reflect the dividend payout. This adjustment ensures fair pricing for new investors entering the market after the dividend eligibility cutoff.
Record Date and Dividend Payment Schedule
All five companies have set their record date for Friday, which means the company will review its records on this day to determine which shareholders are eligible to receive dividends. The actual dividend payments will be disbursed to eligible shareholders according to each company's specified payment schedule.
Why Dividend Stocks Matter for Indian Investors
Dividend-paying stocks remain a popular choice among Indian investors for several compelling reasons:
- Passive Income Generation: Regular dividends provide a steady income stream alongside potential capital appreciation
- Portfolio Stability: Companies that consistently pay dividends often demonstrate financial strength and stability
- Compounding Benefits: Reinvesting dividends can significantly enhance long-term returns through compounding
- Inflation Hedge: Dividend income can help protect against inflation erosion
For income-focused investors, these five stocks represent immediate opportunities to add to their dividend income. However, it's crucial to remember that past dividend performance doesn't guarantee future payments, and thorough research remains essential before making any investment decisions.
