look news india
The current trading week is going to be very fruitful and busy for retail and institutional investors of the Indian stock market in terms of earning from dividends. Nearly 200 major and mid-cap companies listed on Dalal Street are completing important corporate actions this week to transfer dividend amounts to the accounts of their shareholders. According to market analysts, the most important thing is that the ex-dividend date of more than 150 of these companies has been set on or after September 16. Its direct technical and financial meaning is that even those investors who do not currently have shares of these companies in their demat accounts, still have a great opportunity to become legally entitled to this huge dividend by purchasing shares at least one business day before the ex-date.
Textile sector company Victoria Mills has caught the market’s attention by declaring the biggest dividend payout this week, which has announced a huge final dividend of Rs 50 per share; The ex-dividend date of this share has been fixed as 18 September and the record date as 19 September. Blue Dart Express, a major company in the logistics sector, has declared a final dividend of Rs 25 per share, the ex-date and record date of which has been fixed as September 15. Farm equipment maker VST Tillers Tractors has also decided to give an interim/final payout of Rs 25 per share to its shareholders, the ex and record date of which is September 16. In the same order, Gujarat Alkalies and Chemicals at Rs 17.70 per share (ex-date 18 September), Excel Industries at Rs 13.75 per share (ex-date 17 September), Bannari Amman Sugars at Rs 12.50 per share (ex-date 16 September), Creative Castings at Rs 12.50 per share (ex-date 18 September and record date 19 September) and Garware. Hi-Tech Films is going to pay an attractive dividend of Rs 12 per share (ex-date 16 September).
Even among mid-priced stocks, many companies with strong fundamentals have announced attractive dividends, whose ex-date is falling this week. Indo Tech Transformers is going to pay a final dividend of Rs 10 per share to its investors, the ex and record date of which is set for September 16. Aldeco Housing and Industries, a leading company in the real estate and housing sector, is paying a dividend of Rs 9 per share, the ex-date of which is September 16. Specialty chemical company Vinati Organics at Rs 8.50 per share (ex-date September 16), public sector Miniratna company MSTC at Rs 8.10 per share (ex-date September 17), Cochin Minerals at Rs 8 per share (ex-date September 18), packaging major AGI Greenpack at Rs 7 per share (ex-date September 15) and private sector leader Karnataka Bank at Rs 8.50 per share (ex-date September 18). It has announced a final dividend of Rs 5 on each of its shares, the ex and record date of which has been kept as September 15.
Other companies with ex-date of September 16 include Tanfac Industries (₹4.50), Arex Industries (₹2.50), Prakash Pipes (₹2.40), PSU Hindustan Copper (₹1.86), Prakash Industries (₹1.80) and Ajmera Realty & Infra India (₹1.00). Prominent among the stocks which will be ex-dividend on the next day i.e. on 17th September are Sensara Engineering (₹4.00), Tamil Nadu Newsprint & Papers (₹4.00), Acutas Chemicals (₹2.50), Ruby Mills (₹2.50), Star Paper Mills (₹2.50), Filtra Consultants (₹2.00) and Asian Energy Services (₹1.25). On the last trading day of the week, i.e., the companies with ex-date of September 18 included Basmati rice exporter KRBL (₹4.50), pharma company Caplin Point Laboratories (₹4.00), footwear brand Relaxo Footwears (₹3.50), Railway PSU Rights Limited (₹2.75, record date 20 September), innerwear brand Lux Industries (₹2.00) and fertilizer PSU Rashtriya Includes Chemicals and Fertilizers (₹1.34). Apart from this, LT Foods (₹1.00), Piccadilly Agro (₹1.00), Gaja Alternative Asset (₹0.75), Apeejay Surendra Park Hotels (₹0.75), Olectra Greentech (₹0.60), Pratap Snacks (₹0.50), Genus Power (₹0.50), Praveg (₹0.50), Kamdhenu (₹0.40), Manaba Finance. (₹0.25), PG Electroplast (₹0.25), Transformers & Rectifiers (₹0.25) and Morepen Laboratories (₹0.20) will also give dividend benefits to investors.
Stock market technical experts and financial advisors say that one should not immediately decide to buy any share just by looking at the lump sum amount of its declared dividend. Investors should always thoroughly analyze a company’s share price vis-a-vis its dividend yield, financial strength of the company’s balance sheet, debt position, quarterly profit figures and future growth projections. Also, it is important to remember that the amount of declared dividend is technically reduced (adjusted) from the opening market price of the share on the ex-dividend day, hence investing only in companies with strong long-term business models is considered a safe and profitable strategy.