Dividend Stocks: HCL, TCS to Trade Ex-Dividend; Chambal Fertilisers to Declare Buyback This Week

Stocks of several companies, such as Tata Consultancy Services (TCS) and HCL Technologies, are scheduled to go ex-dividend this week. Additionally, certain other companies will trade ex-bonus or ex-split and some have announced share buyback.

The ex-dividend date is important for both current shareholders and potential new investors. It's the day when a company's shares start trading without including the value of the next dividend payment.

In simple terms, if you bought the stock before the ex-dividend date, you'll get the upcoming dividend payment. But if you bought it on or after the ex-dividend date, you won't receive the dividend.

Dividend Declarations

HCL Technologies: Tech giant announced an interim dividend of ₹12, and shares will trade ex-dividend on 19 January.

TCS: TCS declared an interim dividend of ₹9 along with a special dividend of ₹18. The ex-dividend date for TCS shares is also 19 January.

Bonus Issues

A bonus issue is when a company offers its existing shareholders the opportunity to get more shares instead of increasing dividend payouts. It's a way for the company to give extra extra to its current shareholders.

M.K. Exim (India) Ltd: The company declared a bonus issue in the ratio 1:2, and shares will trade ex-bonus on 17 January.

SBC Exports Ltd: Declared bonus issue in the ratio 1:2 and shares will trade ex-bonus on 19 January.

Buyback Announcements

A buyback is when a company decides to buy its own shares back from its current shareholders. They might do this through a tender offer or by purchasing shares on the open market. Usually, the price they offer for the buyback is higher than the current market price.

Dhampur Sugar Mills Ltd: The company is set to declare a buyback of shares on 17 January.

Chambal Fertilisers & Chemicals Ltd: A buyback of shares is scheduled to be declared on 18 January.

Stock Split

A stock split, or subdivision of shares, is a corporate action aimed at boosting a stock's liquidity. In this process, the number of shares outstanding increases by a specific multiple while maintaining the total market capitalization. For instance, in a 1:2 stock split, shareholders receive two shares for everyone held before the split. This strategic move is often employed to make shares more affordable without altering the company's overall value.

Trishakti Industries: Has announced a stock split at a ratio of 1:5, converting the face value of each equity share from ₹10 to ₹2. The record date, determining which shareholders qualify for the stock split, has been set for 16 January.

Other corporate Actions

1- Shree Ajit Pulp And Paper Ltd will have a rights issue of equity shares on 18 January.
2- Tinplate Company Of India Ltd is scheduled for an amalgamation on 19 January.