The announcement date, record date, and ex-dividend date or ex-date are all key dates to look at if you want to earn a dividend from a company. When a company declares a final dividend or interim dividend, it maintains a record date by which you must be a shareholder on the company's record book to be eligible for the dividend, whereas the ex-dividend date is generally one business day before the record date, and one will not receive the next or the announced dividend payment if you buy the stock on the ex-dividend date or later. Therefore, ex-dividend means that a stock will trade without the amount of the next dividend payment, and the share price will normally plummet by the amount of the dividend on the ex-dividend date. So, before the market opens today, let's take a look at two stocks that will be trading ex-dividend.
According to MoneyControl, the Board of Directors announced an interim dividend of Rs 7 per share (of Re 1 face value) for the current quarter ended March 31, 2022, with a record date of 09-05-2022 and the stock going ex-dividend today on 06-05-2022. The dividend amount would be paid on May 19, 2022.
"During the quarter ended March 31, 2022, December 31, 2021 and March 31, 2021, the Company has received dividend income from its subsidiaries amounting to Rs 41 .00 crores, Rs'3.00 crores and Rs 134.00 crores respectively" the company has said in a statement.
The company has said in an exchange filing that "We wish to inform you that the Board of Directors of the Company have approved First Interim Dividend of ₹ 31.5 per equity share i.e. 3150% on face value of Re. 1/- per share for the Financial Year 2022-23 amounting to c. ₹ 11,710 Crores. The record date for the purpose of payment of dividend is Monday, May 9, 2022. The interim dividend will be paid within stipulated timelines as prescribed under law."
The stock will trade ex-dividend today, 06-05-2022, because the record date is May 9, 2022, and the market will be closed for the next two days.