Rs 50/Share Dividend: Smallcap Pharma Stock's Record Date For Dividend Payout Nears; Do You Own?

Smallcap pharma stock, Procter & Gamble Health on October 20th announced that it has rescheduled its annual general meeting (AGM). This AGM is important for shareholders who are looking to avail benefits of dividends. The healthcare firm has announced a dividend of a whopping Rs 50 per share and the record date is fixed next month.

In its regulatory filing, Procter & Health said, "We would like to inform you that the 56th Annual General Meeting of the Company is rescheduled for on Thursday, November 30, 2023."

It added, "We would further like to inform you that the Register of Members and Share Transfer books shall remain closed from Friday, November 24, 2023, to Thursday, November 30, 2023 (both days inclusive) for the purposes of Annual General Meeting and payment of dividend for the year ended June 30, 2023, if approved by members at the 56th Annual General Meeting."

"The notice convening the 56th Annual General Meeting of the Company will be provided in due course of time," it said lastly.

P&G Health has recommended a final dividend of Rs 50 per share having a face value of Rs 10 each for financial year 2022-23.

Earlier, it said that the final dividend, if approved at the ensuing 56th Annual General Meeting, will be payable to those shareholders whose names appear in the Register of Members of the company or the records of the Depositories as beneficial owners of the shares as at the close of business hours on Tuesday, November 14, 2023 (Record date).

Hence, the company will turn ex-dividend on November 14 as well.

In general terms, dividends are distributed also in a certain proportion by listed companies from their net profits earned in a respective financial year. The record date is proposed by the listed company's board of directors to determine the name of the eligible shareholders for dividends. As per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date. Meanwhile, the ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

For the year ending June 2023, Procter & Gamble Health has declared a massive 950% dividend amounting to Rs 95 per share. Before the final dividend of Rs 50 per share, the company paid an interim dividend of Rs 45 per share (450%).

At the current market price, Procter & Gamble Health has a dividend yield of 1.84%. On BSE, the stock ended at Rs 5171.90 apiece up by 0.9% on Friday. Its market cap is Rs 8,585.03 crore.

However, these dividends are also subject to tax deducted at source (TDS). Those investors who will get dividend benefits at P&G Health will also be eligible for TDS. But there's a catch!

- No TDS shall be deducted to resident shareholders if the Individual shareholder provides duly signed Form 15G or Form 15H (as applicable), provided that the form is accurately filled, and meets the prescribed eligibility conditions.

- Those who do not submit Form 15G will face 10% TDS, however, this rate applies to those who have linked their Permanent Account Number (PAN) in their demat accounts. Hence, P&G Health has asked all resident shareholders to update the PAN, if not already done, with the depositories (in case of shares held in dematerialized mode) and with the company's Registrar and Transfer Agents ("RTA") - KFin Technologies Limited (in case of shares held in physical mode).

- If PAN is not updated or wrong, then the TDS will be 20% of your dividend benefits.

- As per the provisions of section 194 of the Act, no tax is required to be deducted on dividends paid to LIC, GIC or its subsidiaries or any other insurer in respect of shares owned by them or in which they have full beneficial interest.

Procter & Gamble Health Limited is one of India's companies manufacturing and marketing vitamins, minerals, and supplements products for a healthy lifestyle and improved quality of life, including Neurobion, Livogen, SevenSeas, Evion, Polybion and Nasivion.