Ever since the Finance Ministry announced Taxation of Dividends Received (Above INR 10 lakh) in the Budget 2016, companies have been lining up furiously to reward their share-holders before April 01. This is the date from which any Individual or HUF receiving dividends greater than INR 10 lakh, would have to pay 10% Dividend Distribution Tax. Read our short post on the Introduction of Dividend Distribution Tax.
As a result, there has been a slew of corporate board meetings as companies scramble to figure out how much they should distribute to share-holders, while keeping in mind, the deadline of March 31. Keep in mind, this is mainly for the benefit of Promoters and Big Individuals, likely to receive more than INR 10 lakh on account of their ownership positions, who would want to take the cash now rather than after April. These investors are the ones generally who take home a lion’s share of the dividend and they do not like to share this extra topping with the government.
We have created a Dividend Tracker, which we update at the end of every day so as to capture two sets of information:
- Dividend of the past: List of all companies that have declared dividends (both Interim and Final) till date, along with the amount of dividend and the Ex-Dividend date.
- Dividend of the future: For a company to consider taking advantage of this honeymoon period for dividend payment, they need to hold a Board Meeting wherein they decide details of the Dividends proposed. This is a very good indicator of the companies getting this arsenal ready to pay dividends.
You can visit this Dividend Tracker page to keep a lookout for your invested companies declaring dividends.
Here are the list of posts where in we tracked the dividends for the previous weeks(Links open in new tabs):
- Weekly Update – March Madness – The Dividend Bonanza: As of 28th March
- Weekly Update – March Madness – The Dividend Bonanza: As of 21st March
- Weekly Update – March Madness – The Dividend Bonanza: As of 11th March
- Weekly Update – March Madness – The Dividend Bonanza: As of 9th March
Now, onto the Dividends announced so far (15th March 2016, EoD).
Dividend Bonanza – 15th March
255 companies have announced their Dividends so far. These include some of the biggest blue-chip companies such as Reliance Industries, Coal India, ONGC, Bajaj Auto and many more.
The Top 10 based on Dividend Yield (above Rs. 1,000 cr. Market Cap) are: