Share of Tata Steel and Tata Elxsi will be the talk of stock market on Thursday as these two stocks will turn ex-dividend. Tata Steel will pay a 360 per cent dividend to shareholders in the fiscal year FY23, while Tata Elxsi will pay a whopping 606 per cent. Tata Steel will pay the actual dividend on July 10 while Tata Elxsi’s dividend payment will be made on August 3.
The dividend will be paid on or after the seventh day as the 34th AGM concludes. The company has fixed June 23 as the record date for the same.
Company shares typically trade ex-dividend on the day or the day before the record date. When a company's stock goes ex-dividend on a specific date, it does not carry the value of the next dividend payment.
Dividends are a type of incentive paid to shareholders by a listed company from its profits. The ex-dividend date is the date on which the price of a company's equity shares is adjusted to reflect the dividend payout. It is fairly similar to the record date due to the 'T+1' settlement option, which is widely used on exchanges.
Tata Elxsi is a leading provider of design and technology services to the automotive, media, communications, healthcare, and transportation industries.
Tata Elxsi stock has gained about 23% so far this year.
Tata Steel, Tata group's flagship company, ranks top among the top global steel companies with an annual crude steel capacity of 35 million tonnes. In the fiscal year 2022-23, the company had a consolidated turnover of $30.3 billion.
Tata Steel's board of directors recommended a dividend of Rs 3.60 per share of face value Rs 1 each for the financial year ended March 2023.
Tata Steel has distributed 29 dividends over the past 20 years, and in the most recent calendar year, it distributed an equity dividend worth Rs 12.75 per share.
The stock has dropped 4 per cent in a year.