These 3 stocks to trade ex-dividend from Thursday. Last chance to buy for eligibility

ETMarkets.comLast Updated: Nov 19, 2024, 07:54:00 AM IST

Synopsis

Amrutanjan Health Care had declared a dividend of Re 1 per share, GMM Pfaudler too, declared a dividend of Re 1 per share while Satia Industries had declared a dividend of Rs 0.1 per share.

The shares of 3 companies, i.e, Amrutanjan Health Care, GMM Pfaudler and Satia Industries are expected to be in focus today as they have set November 21 as the record date for determining shareholders eligible for dividend payments.

Amrutanjan Health Care had declared a dividend of Re 1 per share, GMM Pfaudler too, declared a dividend of Re 1 per share while Satia Industries had declared a dividend of Rs 0.1 per share.

This means today will be the last day to buy the shares of these companies in order to be able to qualify for the dividends announced by them.

Dividends are paid to the shareholders who are listed in the company’s records on the record date. For the eligibility of the dividends, shares of the company must be purchased at least one day before the ex-date, as transactions settle the next day.

After implementation of the T+1 framework, the record date and ex-date are the same in most cases unless there is a market holiday after the ex-date.

Shareholders who buy the stock at least one day before the ex-date are eligible for dividends as settlement happens the next day. Those buying the stock on the ex-date are not eligible for dividends.

Also read: Goldman Sachs, Morgan Stanley downgrade China stocks as growth falters

As a fundamental component of stock market returns, dividends typically come in the form of quarterly cash payments, though they can also be distributed as additional shares.

This profit-sharing mechanism is particularly common among mature, financially stable companies with consistent earnings, making dividends a key consideration for income-focused investors.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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