Several well-known companies, including Tata Motors, Hindustan Unilever Ltd (HUL), Adani Enterprises, Asian Paints, Canara Bank, and Bajaj Auto, will have their shares trade ex-dividend in the week starting Monday, June 10. This means that starting from this date, the stock prices will adjust to reflect the upcoming dividend payouts.
Alongside the ex-dividend adjustments, some companies have also announced other corporate actions. These include share buybacks, bonus issues, and Extraordinary General Meetings (E.G.M.), as per data from the Bombay Stock Exchange (BSE).
What Does Ex-Dividend Mean?
The ex-dividend date is when a stock starts trading without the value of its upcoming dividend. If you buy the stock on or after this date, you won’t be entitled to the next dividend payment. Only those who own the stock by the end of the record date will receive the dividend.
What Happens on the Ex-Dividend Date?
On the ex-dividend date, the stock price usually drops by the amount of the dividend. This reflects the fact that new buyers won’t receive the upcoming dividend. For example, if a stock worth ₹100 is paying a ₹5 dividend, its price might drop to around ₹95 on the ex-dividend date.
Why Is This Important?
Investors need to be aware of the ex-dividend date to understand when they need to hold or buy a stock to receive the dividend. It’s also a key date for traders who look for short-term opportunities related to dividend announcements.
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