JK Cement, JSW Steel, Polycab among 10 stocks to go ex-dividend on Tuesday

These 10 companies had fixed July 09 as the record date for a dividend payout of up to Rs 30 per share.

A total of 10 stocks, including the likes of JSW Steel, Polycab India, Persistent Systems and JK Cement, will be traded at an ex-dividend price tomorrow (July 09) onwards on the BSE and NSE

DCM Shriram, Deep Industries, Grindwell Norton, Ingersoll-Rand (India), Baid Finserv and Atishay are the other six companies to have fixed July 09 (Tuesday) as the record date for determining the eligibility of shares holders for the dividend payout as announced earlier.

Polycab India was trading flat around Rs 6,625 on volumes of around 4,150 shares on the BSE. The company has announced a dividend payout of Rs 30 per equity share.

 

Persistent Systems was down 2 per cent at Rs 4,657 and JSW Steel had shed 1.1 per cent at Rs 943 ahead of the dividend payout of Rs 10 per share and Rs 7.30 per share as of record date on July 09. The former had seen trades of around 19,000 shares, while the latter 13,000 shares on the BSE.

Shares of JK Cement quoted marginally in red at Rs 4,208. The cement maker had announced a final dividend of Rs 15 per equity share, and additional a special dividend of Rs 5 per share.

Among others, Ingersoll-Rand (India), Grindwell Norton, Deep Industries and DCM Shriram traded 0.3 -1.6 per cent lower on Monday. These companies have announced a dividend payout of Rs 20, Rs 17, Rs 2.40 and Rs 2.60, respectively.

Meanwhile, Baid Finserv which has announced a dividend of Rs 0.10 per share had zoomed 6 per cent to Rs 18 today; while Atishay, which has announced an outgo of Rs 1 per share, traded with a 2 per cent gain at RS 145 on the BSE.

Why is the record date important?

The record date is important as it helps in ascertaining the name of the shareholder to whom the dividend needs to be credited. 

Investors who buy the stock prior to the record date will be eligible to receive the dividend payout. Similarly, if the investor wants to sell the stock but still wants to receive the dividend, he/ she will need to hold the shares until the record date - which is also known as ex-dividend date.

On the record date, the value of the stock price gets adjusted (in general falls to the extent of payout announced by the company) and starts trading at an ex-dividend price.