1100% Dividends: Vedanta Announces 2nd Interim Dividend Of Rs 11/Share; How To Be Eligible?

Dividend king Vedanta is back with another reward for its shareholders. The metals and mining giant has announced a second interim dividend of a whopping 1100% for the fiscal year 2023-24. The dividend payout will be a massive Rs 4,089 crore. Year-to-date, Vedanta has paid a total of Rs 51.50 dividends per share and currently has the highest dividend yield of 19.75%.

Vedanta Dividends:

In its meeting held on December 18, Vedanta approved a second interim dividend of Rs 11 per share which is 1100% on the face value of Re 1 per equity share for the Financial Year 2023-24 aggregating to Rs 4,089 crore.

Vedanta said that the record date for payment of the dividend shall be Wednesday, December 27, 2023, and the interim dividend shall be duly paid within the stipulated timelines as prescribed
under law.

This also means that Vedanta shares will turn ex-dividend on December 27th.

On BSE, Vedanta's share price is currently at Rs 260.60 apiece, up by 1.34% on Monday with an m-cap of Rs 96,870.14 crore.

For FY24, earlier, Vedanta paid the first interim dividend of up to 1850% amounting to Rs 18.50 per share. For the entire financial year 2022-23, the company paid an overwhelming 10,150% dividends valuing up to Rs 101.5 per share.

But to ensure that you receive Vedanta's second interim dividend benefits for FY24, you first need to be eligible for it.

There are some key general factors that shareholders should not miss out on if they want to avail dividends from listed companies.

How To Be Eligible For Dividends:

As per Motilal Oswal's website, here are five pointers that will help shareholders be eligible for dividend stocks:

Share Ownership: To receive dividends, you need to own company shares. You won't be eligible for dividends if you don't own any shares.

Record Date: The record date is the date when the company checks its records to see who should get the dividends. Shareholders listed in the company's records on the record date are eligible to receive the dividends.

In the case of Vedanta, the record date is December 27th for the second interim dividend.

Ex-Dividend Date: The ex-dividend date is a vital date to remember. You must buy the company's shares before this date to receive the forthcoming dividend payment. Buying shares after the ex-dividend date means you won't get the current dividend. However since the stock market has adopted the settlement T+1 option, hence, the ex-dividend date is on the same day as the record date.

That means shareholders should ensure to hold Vedanta shares by the end of December 27th.

Dividend Policy: Each company has its dividend policy. This policy determines how often and how much they pay in dividends. Some companies may not distribute dividends at all. So it's good to check the company's dividend policy to understand their approach.

Different Share Classes: Companies may have different types of shares, like common and preferred shares. These share classes can have different dividend entitlements. Make sure you understand the dividend rights associated with the shares you own.

Once you're eligible for the dividends, the final stage is the actual payment of these benefits. As per the regulatory guidelines, the timeline for interim dividend payout is one month from the announcement date. However, if the dividend is final in terms then the distribution is required to take place within 30 days from the date of the Annual General Meeting (AGM).

Vedanta Share Price:

Year-to-date, Vedanta shares are in red. The company's stock has dropped by over 17% on BSE. However, in the last month, the stock gained by as much as 9%.

As per the latest update, Kotak Institutional Equities has given 'Sell' on Vedanta shares for a target price of Rs 220. Although, brokerage Motilal Oswal has suggested 'Neutral' on this metal stock, its target price is also Rs 220 currently.

On the other hand, brokerage Antique Stock Broking has given a 'Buy' rating on Vedanta for a target price of Rs 317. From the current market price, this hints at a potential upside of nearly 22% ahead.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.