Rs 7.2/Share Dividend, Others: 5 PSU Stocks To Trade Ex-Dividend On September 8; Do You Own Any?

Five government-backed stocks are set to trade ex-dividend on Friday. Some of these stocks are even Miniratna. These are RITES, MOIL, HUDCO, GIC Re, and The New India Assurance Company. Accordingly, these shares will be focused on exchanges. The ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

Here is the list of PSU stocks to trade ex-dividend on September 8:

RITES

This Miniratna CPSE has a consistent track record of dividend payment. For FY23, based on the company's performance, the company declared three interim dividends aggregating to Rs 14.5 per equity share. Further, they also declared a final dividend of Rs 6 per share for which the record date is set at September 8.

As per the regulatory filing, the final Dividend, if approved at the Annual General Meeting, will be paid to those shareholders whose names appear in the Register of Members of the Company and
to those shareholders whose name appears in the Statements of beneficial ownership furnished by NSDL and CDSL at the end of business hours on 8th September 2023.

With the final dividend of Rs 6, RITES' total dividend reward comes to around Rs 492.62 crore (i.e. Rs 20.50 per share) which is 205% of the paid-up share capital of the company.

In its annual report, RITES said, "The total dividend of Rs 493 crore at Rs 20.5 per share, takes the dividend payout, on accrual basis, to the highest ever, being 92.8% of the profits earned."

The company has also declared the first interim dividend of Rs 3.75 per share (37.5% of paid-up share capital) for FY24 recently.

Ahead of turning ex-dividend, RITES shares ended at Rs 508.05 apiece, up by 0.8% on BSE.

MOIL:

MOIL has been a dividend-paying company for many years. Also, a Miniratna company, its board recommended a final dividend of 6.90% (i.e. Rs 0.69 per equity share) for the year 2022-23. The final dividend is in addition to the interim dividend @30% (i.e. Rs 3.00 per equity share) which the company already paid in February month.

The record date for the final dividend is set on September 8, when MOIL stocks will also turn ex-dividend. Notably, the final dividend, if declared in the annual general meeting (AGM), on equity shares will be paid/ dispatched on or before 20 October 2023 to eligible shareholders.

The company's AGM is on September 21.

With that, the total per share dividend for the year 2022-23, thus, works out to Rs 3.69 per equity share (previous year Rs 6.00). The total dividend outlay for the year is Rs 75.09 crore (the previous year Rs 122.09 crore).

It said that the final dividend has been recommended taking into consideration the future capex plan on account of the increase in targeted production and also the ongoing and up-coming expansion plans.

On Thursday, MOIL's share price closed at Rs 243.90 apiece, up by 2.4% on BSE.

General Insurance Corporation of India:

This government-backed general insurance firm recommended the payment of a dividend of ₹ 7.20 per share of Face Value of Rs 5/- each (i.e. 144 % of paid-up equity share capital) for the FY 2022-23 as against a dividend of ₹ 2.25 per share for FY 2021-22.

The record date to determine eligible shareholders for the dividend payout is set on September 8, 2023.

On BSE, GIC Re shares ended at Rs 229.70 apiece, down by 0.24% on Thursday.

Since 2018, the general insurer has declared four dividends for its shareholders.

Housing & Urban Development Corporation (HUDCO):

This government-backed housing finance company has declared a final dividend of Rs 3.10/- (31.00 %) per equity share of the face value of Rs 10/- each for approval of the shareholders in the AGM.

In its filing, HUDCO said, "On approval/ declaration at the AGM, payment of dividend will be made subject to deduction of tax at source, to the eligible members, whose names appear as beneficial owner/member as at the end of the business hours on Friday, the 8th September 2023, being the record date."

Hence, the stock will turn ex-dividend on Friday.

Earlier, HUDCO's board paid an interim dividend of Rs 0.75/- (7.50%) per equity share having a face value of Rs 10/- each, in March 2023.

For FY23, the total dividend payout is Rs 3.85/- (38.50%) per equity share with a total dividend payout of Rs 770.73 crore.

On BSE, HUDCO's share price closed at Rs 78.21 apiece on Thursday, up by 0.8%. The stock also touched an intraday high of Rs 79.10 apiece which was near the 52-week high of Rs 80.40 apiece.

The New India Assurance Company Ltd:

The PSU recommended a final dividend of Rs 1.93 per share having a face value of Rs 5 each for the financial year 2022-23. It fixed September 8 as the record date to determine the entitlement of members to receive the final dividend, if approved at the annual general meeting (AGM).

Hence, the stock will turn ex-dividend on September 8.

As per Trendlyne data, the company has declared five dividends for its shareholders since November 2017.

On BSE, the company's stock ended at Rs 134.25 apiece on Thursday flat compared to the previous closing price.

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.