Godfrey Phillips, Power Grid, Ajanta Pharma Dividends: A Chance To Earn Passive Income
Investors in the Indian stock market are always on the lookout for opportunities to earn passive income. One such opportunity is dividend investing, where companies distribute a portion of their profits to shareholders. On Friday, shares of Godfrey Phillips India Ltd., Power Grid Corp., Ajanta Pharma Ltd., and Route Mobile Ltd. will be of interest, as the day marks the last session for investors to buy shares to qualify for receiving the dividend before the stock goes ex/record-date.
Understanding Dividends And Record Dates
The record date determines the eligible shareholders who will receive the dividend payment. The ex-dividend date, which mostly coincides with the record date, marks when the share price adjusts to reflect the upcoming payout. In the case of Godfrey Phillips, the board announced an interim dividend of Rs 17 per share, with a record date of Nov. 10. Similarly, Power Grid Corporation has announced an interim dividend of Rs 4.5 per share, while Ajanta Pharma announced a dividend of Rs 28 apiece.
Other Companies Paying Dividends
In addition to Godfrey Phillips, Power Grid, and Ajanta Pharma, other companies are also paying dividends. Aurionpro Solutions Ltd. approved an interim dividend of Rs 1 each, and Route Mobile Ltd. will issue a dividend of Rs 3 per share. Transcorp International Ltd. has announced a dividend of Rs 0.20.
Importance Of Record Date In Dividend Investing
Given India’s T+1 settlement cycle, shares purchased on the record date (Nov. 10 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by Nov. 7 will be the beneficiaries. This highlights the importance of keeping track of record dates when investing in dividend-paying stocks. Investors can use stock market calendars to stay updated on upcoming record dates and plan their investments accordingly.
Taxation Of Dividends
Dividends are taxable in the hands of the shareholders, and companies are no longer required to pay the Dividend Distribution Tax (DDT). The TDS on dividend income for resident individuals is 10% if the dividend amount exceeds Rs 5,000 in a financial year. Investors should consider the tax implications of dividend investing and plan their investments accordingly. They can also use tax calculators to estimate their tax liability.
Benefits Of Dividend Investing
Dividend investing can provide a regular stream of income for investors. It can also help to reduce volatility in a portfolio, as dividend-paying stocks tend to be less volatile than non-dividend paying stocks. Additionally, dividend investing can provide a way to invest in established companies with a history of paying dividends. Investors can use dividend investing strategies to maximize their returns and minimize their risk.
Conclusion
In conclusion, investors have one last chance to buy shares of Godfrey Phillips, Power Grid, Ajanta Pharma, and other companies to qualify for dividend payouts. By understanding the record date, taxation of dividends, and benefits of dividend investing, investors can make informed decisions and maximize their returns. They can also use stock market news and market analysis to stay updated on the latest developments in the stock market.