Three stocks will be in focus this week as they will turn ex-dividend ahead of the record date. Two of these stocks are government-owned companies. The companies will pay a dividend in the range of 16% to 80%. Dividends are incentives distributed by a listed company from their profits to shareholders. When a company generates a profit and accumulates retained earnings, those earnings can be either reinvested in the business or paid out to shareholders as a dividend.
The ex-dividend date is the day when the price of the equity shares of a company gets adjusted for the dividend payout. A stock that goes ex-dividend does not carry the value of its next dividend payment. The ex-date is one working day before the record date when a listed company determines the eligible shareholders for the dividend benefit.
Here is the list of stocks that will turn ex-dividend this week
PTC India
PTC India is a government-owned firm whose primary focus is to develop a commercially vibrant power market in the country. It is a provider of power trading solutions in India. The company will pay a final dividend of Rs 5.8 per equity share (58%) for the fiscal year FY22 having a face value of Rs 10 each. The dividend is subject to the approval of shareholders in the ensuing Annual General Meeting (AGM) proposed to be held on 30 December.
PTC India in its regulatory filing said, the members of the company whose names appear on the register of members as of December 16, will be entitled to receive the final dividend. Shares of PTC India will turn ex-dividend on December 15. PTC India shares were trading 2.84% up at Rs 90 on NSE. So far this year, the stock has fallen around 18%, underperforming Nifty 50.
Rashtriya Chemicals & Fertilizers (RCF)
Government-backed RCF is a fertilizers and chemicals manufacturing company. It manufactures Urea, Complex Fertilizers, Bio-fertilizers, Micro-nutrients, 100% water soluble fertilizers, soil conditioners, and a wide range of Industrial Chemicals. The company has fixed 16 December as the record date for the final dividend for FY22 and interim dividend for FY23. Company’s interim dividend for FY23 is Rs 1.60 per equity share (16%) on the paid-up equity share capital of the company.
Its final dividend is Rs 2.50 per equity share of Rs 10 each (i.e. 25% on the paid-up equity share capital) for the financial year ending 31 March 2022. Hence, the stock will turn ex-dividend on 15 December. RCF shares on Monday were trading at Rs 133 on NSE, up 1.76% from the previous close. So far this year, the stock has surged over 70%, outperforming benchmark Nifty by a margin. The company’s market cap is around Rs 7,337 crore.
Sukhjit Starch & Chemicals
Sukhjit Starch & Chemicals is an agro company with business in the field of Corn Grind. Earlier this month, the company revised its interim dividend record date to 15 December from 13 December set earlier. Since the company’s settlement type is ‘T+1’, it will turn ex-dividend on the same day as the record date. The company’s board of directors in a meeting held on 5 December approved the payment of an interim dividend of Rs 8 per equity share having a face value of Rs 10 each (80%) for the financial year FY23.
It said that the interim dividend shall be paid within a period of 30 days from the date of the declaration to those shareholders of the company whose names appear in the records of the company as of the specified record date. On Monday, Sukhjit Starch and Chemicals shares were trading at Rs 461.15, up 1% on NSE. Its market cap was around Rs 684 crore. So far in 2022, Sukhjit stock has gained around 7% on NSE.