Investors in REC Ltd. and TVS Motor Co. are gearing up for an exciting opportunity, as today is the final day to purchase shares eligible for interim dividend payments. This crucial trading session is pivotal for shareholders keen on receiving their dividends before the stocks go ex-dividend. Understanding the significance of the record date, which identifies the shareholders entitled to the dividend, is essential for maximizing your investment returns.
REC Ltd. Dividend Details
In a recent announcement, REC Ltd. revealed a fourth interim dividend of ₹3.6 per share for the financial year 2024-25. The record date for this dividend has been set for March 26, meaning that shareholders who own the stock by March 25 will qualify for the payout. With India’s T+1 settlement cycle in place, purchasing shares on the record date itself will not grant dividend eligibility.
- Total Dividend Payout: Approximately ₹950 crore
- Government Stake: Over 52% of shares, equating to around ₹500 crore in dividends
- Retail Investors: More than 10 lakh investors will receive a cumulative payout of ₹74 crore
TVS Motor Interim Dividend Announcement
Meanwhile, TVS Motor Co. has declared an interim dividend of ₹10 per share for the fiscal year ending March 31, 2025. This substantial payout will be distributed across about 47.5 crore shares, summing up to a total dividend expenditure of around ₹475 crore. Shareholders can expect the payment within 30 days of the dividend declaration.
- Total Dividend Payout: Approximately ₹475 crore
- Retail Investors: Nearly 2.8 lakh investors holding shares up to ₹2 lakh will benefit from a total payout of ₹32.7 crore
Why Dividends Matter
Dividends serve as a vital mechanism for companies to reward their shareholders. They signify a company’s financial health and commitment to returning profits to investors, making them an attractive aspect of stock ownership. As investors monitor these developments, understanding the timelines and eligibility criteria will empower them to make informed decisions.
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