Sportking India, Onesource Ideas Venture, and Krishna Institute of Medical Sciences will trade ex-date for the subdivision of their stocks that they have announced
A dividend, often considered an additional source of income for investors upon their investment, is distributed by the company to its shareholders from its income
Dividend, often considered an additional source of income for shareholders, refers to a portion of a company's profit that the company distributes among its shareholders
The Centre's dividend receipts from CPSEs have exceeded the revised budget estimate by 26 per cent to about Rs 63,000 crore, with PSU behemoths like Coal India, ONGC, Powergrid and GAIL making handsome payouts in the current fiscal. The revised estimates of the Budget presented in Parliament on February 1 pegged dividend receipts from CPSEs at Rs 50,000 crore for the current fiscal. The actual dividend collections have been about 26 per cent higher at Rs 62,929.27 crore in the 2023-24 fiscal ending March 31, 2024, as per the Department of Investment and Public Asset Management (DIPAM) website. In March, the government received hefty dividend tranches from ONGC (Rs 2,964 crore), Coal India (Rs 2,043 crore), Power Grid Corporation of India (Rs 2,149 crore), NMDC (Rs 1,024 crore), HAL (Rs 1,054 crore) and GAIL (Rs 1,863 crore). In the last fiscal (2022-23), dividend receipts stood at Rs 59,952.84 crore. Higher dividend is a reflection of the robust financial performance of CPSEs duri
Analysts believe the move will create shareholder value
In 2018, the British company turned down ITC's proposal to continue with an equity-based employee stock option.
The government has brought in a new policy for the public sector companies
But, it has advised them to take a conscious call while declaring dividends for FY21, keeping in mind their capital position, solvency margin and liquidity position
This moves comes in the wake of differences between North Block and Mint Road over the dividend that the Centre received from the RBI in 2017-18.
Firms with higher free cash flows than dividends have shifted focus from growth to higher payouts
Move follows shareholder complaints about cash-rich firms refusing to pay dividend
But don't lose out on companies which are ploughing back their profits for growth; have a balanced portfolio