Vedanta, the global leading and diversified natural resources entity is turning ex-dividend tomorrow. Implying those who tend to trade in the scrip of Vedanta i.e. buy into its shares will not be eligible for the last announced dividend.
Notably as per the company's filing with the exchange dated September 1, 2021, "the Board of Directors of the Company in its meeting held on Wednesday, September 01, 2021 have approved First Interim Dividend of Rs. 18.50 per equity share i.e. 1850% on face value of Re. 1/- per share for the Financial Year 2021-22 amounting to Rs. 6,877 Crores. The record date for the purpose of payment of dividend is Thursday, September 9, 2021. The interim dividend will be paid within stipulated timelines as prescribed under law.
For the investors of the company: Those of you who have the Vedanta scrip as on record date will be eligible for the dividend pay-out.
What happens to Vedanta scrip as it turns ex-dividend tomorrow?
As very much understood the stock of Vedanta that in today's session closed at around Rs. 299 per share will discount the dividend pay-out on the ex-dividend date and hence the scrip's price will go lower.
What experts recommend about Vedanta shares going ex-dividend tomorrow?
Experts are suggesting investors in Vedanta to keep their stock position intact to reap the dividend benefit. There is also an explanation that says that in case the dividend price is 5% higher than the closing price of the company's share at the time of dividend announcement, then the dividend is called a special dividend.
Now as the dividend is over 5% as compared to the stock's price when the dividend was announced, this first interim dividend for the financial year will also be treated as special dividend.