Stocks offering dividends: Reliance Industries, Jio Financial Services, ICICI Bank, CCI, IndiGo, and other companies will no longer pay their dividends for the current week as they will be trading ex-dividend.
Major Companies to Trade Ex-Dividend: A Comprehensive Overview
In the financial world, several significant companies have announced their ex-dividend dates, affecting investors who are interested in dividend income. Here's a breakdown of the companies and the key points to remember about trading ex-dividend.
What does trading ex-dividend mean?
When a stock is said to be trading ex-dividend, it means that the stock no longer reflects the value of its forthcoming dividend payment starting from that date. Shareholders who purchase the stock on or after the ex-dividend date are not entitled to the next dividend, while those who own the stock before this date will receive it.
Key points about the ex-dividend date:
- The ex-dividend date is set by the stock exchange and typically falls one business day before the record date, which is when the company identifies shareholders eligible for the dividend.
- The stock price usually drops by roughly the dividend amount on the ex-dividend date, reflecting the fact that new buyers won’t receive the dividend.
- Investors who want to receive the dividend must buy the stock before the ex-dividend date; they can sell it after and still keep the dividend.
- There are two types: cash ex-dividend (paid in cash) and stock ex-dividend (paid in shares), depending on the dividend form declared by the company.
Companies trading ex-dividend this week and next
On August 11, several stocks, including unspecified companies, will declare dividends and trade ex-dividend. Among the companies that will be trading ex-dividend this week are Reliance Industries, Jio Financial Services, ICICI Bank, Container Corporation of India, InterGlobe Aviation, and others. Next week, companies such as Grasim Industries and ICICI Bank are expected to trade ex-dividend.
Other companies that will trade ex-dividend this week include Wipro, Maruti Suzuki, Bosch, CRISIL, and others. On August 14, Container Corporation of India, Crestchem, Dai-Ichi Karkaria, Godrej Consumer Products, HEG, InterGlobe Aviation, Hitachi Energy India, MPS, NBCC (India), Page Industries, Pidilite Industries, and Hindustan Petroleum Corporation will be trading ex-dividend.
On August 12, Grasim Industries and ICICI Bank will trade ex-dividend, while on August 13, Brigade Enterprises, Crestchem, Dai-Ichi Karkaria, Godrej Consumer Products, HEG, InterGlobe Aviation, MPS, NBCC (India), Page Industries, Pidilite Industries, Hitachi Energy India, QGO Finance, RailTel Corporation of India, Rain Industries, South Indian Bank, and Sun TV Network will be trading ex-dividend.
Dividend payout dates
Arvind Fashions, Axtel Industries, Dwarikesh Sugar Industries, KIFS Financial Services, India Pesticides, NGL Fine Chem, and RITES will pay out the dividend on August 12. The exact dates for the record dates and dividend payment dates for the companies mentioned were not provided in the text.
Reasons for declaring dividends
No information about the reasons behind the companies' decisions to declare dividends was provided in the text. It is essential to note that companies may declare dividends as a way to return profits to shareholders, signal financial stability, or for other strategic reasons.
By understanding the concept of trading ex-dividend and keeping track of the ex-dividend dates of the companies in which they invest, dividend investors can make informed decisions about their investments and optimise their dividend income.
- Those interested in dividend income should take note of the ex-dividend dates for companies like Reliance Industries, Jio Financial Services, ICICI Bank, and Grasim Industries, as they will be trading ex-dividend this week and next.
- It's vital for dividend investors to buy a stock before the ex-dividend date, as they will be eligible for the dividend and can sell after to retain the payment.
- The price of a stock typically drops by the dividend amount on the ex-dividend date, reflecting the fact that new buyers will not receive the dividend.
- Dividend payout dates for companies such as Arvind Fashions, Axtel Industries, and RITES are set for August 12, although the record dates and payment dates were not specified.
- Companies may declare dividends to return profits to shareholders, signal financial stability, or for strategic reasons, highlighting the importance of understanding the concept of trading ex-dividend and staying informed about the ex-dividend dates of investment portfolios.
