Housing Development Finance Corporation Limited(HDFC) is an Indian financial services company that was founded in 1977. Wipro’s headquarter is in Mumbai, Maharashtra, India.
HDFC key products include Mortgage Loans. HDFC also has a presence in asset management, venture capital, realty, education, deposits, banking, life and general insurance, and education loans.
A dividend is a small form of payment given out of the profits to shareholders of a company as a form of gratitude. They are nowadays considered an important test to see the company’s strength and determine the enterprise as a stable corporation.
They have even become a form of secondary income for investors that want a maximum return from their portfolio. This article will cover everything you need to know about dividends before buying shares of a company.
HDFC Dividend History
|Announcement Date||Dividend (Rs)||Dividend Type||Dividend (%)||Ex-Date|
|May 7, 2021||23||Final||1150||May 31, 2021|
|May 26, 2020||21||Final||1050||July 9, 2020|
|May 13, 2019||0||875||July 19, 2019|
|May 13, 2019||17.5||Final||875||July 19, 2019|
|March 6, 2019||3.5||Interim||175||March 15, 2019|
|April 30, 2018||16.5||Final||825||July 19, 2018|
|March 13, 2018||3.5||Interim||175||March 22, 2018|
|May 4, 2017||15||Final||750||July 14, 2017|
|March 1, 2017||3||Interim||150||March 9, 2017|
|May 2, 2016||14||Final||700||July 15, 2016|
|March 16, 2016||3||Interim||150||March 30, 2016|
|April 29, 2015||13||Final||650||July 15, 2015|
|March 16, 2015||2||Interim||100||March 25, 2015|
|May 6, 2014||14||Final||700||July 4, 2014|
|May 8, 2013||12.5||Final||625||June 27, 2013|
|May 7, 2012||11||Final||550||June 22, 2012|
|May 10, 2011||9||Final||450||June 22, 2011|
|May 3, 2010||36||Final||360||June 29, 2010|
|May 4, 2009||30||Final||300||July 6, 2009|
|April 30, 2008||25||Final||250||June 27, 2008|
|May 3, 2007||22||Final||220||June 12, 2007|
|May 2, 2006||20||Final||200||June 30, 2006|
|May 5, 2005||17||Final||170||June 29, 2005|
|May 7, 2004||13.5||Final||135||July 2, 2004|
|May 7, 2003||11||Final||110||July 1, 2003|
|January 14, 2002||0||Final||250||July 3, 2002|
|May 3, 2001||0||Final||125||June 11, 2001|
For the last 10 years, HDFC is given dividends every year. HDFC has a good track record of giving dividends.
Is Dividend Good for the Company?
Yes, a dividend is good for the company because it makes it more attractive to the shareholders. The return of profits can be seen as a thank you note for the investors to trust the company. Dividends are a strong sign that the company’s balance sheet is strong and positive.
Companies that pay dividends with consistent returns tend to be highly valued stocks with high market share rates. High stock price means larger market capitalization, and the company has a larger credit score to take on debt.
Who is Eligible for a Dividend?
Any shareholder owns a company’s stock for more than one business day before the ex-date dividends are paid out.
How do Dividends Get Paid?
Dividends are paid to the shareholder through a cheque that the shareholder can encash. A shareholder can also apply to receive the dividends in the form of additional company stocks. The stock-based Dividend is called a DRIP (Dividend Return Investment Plans) and is considered an additional investment.
Why do Companies not Pay Dividends?
Small companies or startups do not pay dividends to their shareholders because they tend to be growing firms. They need many investments to fuel the expansion and become bigger as a company. Only highly well-established companies with no need for investment for future expansion tend to pay dividends.
What is the Dividend Announcement Date?
The company management comes together to announce when the company will pay dividends to the shareholders. The data then has to be approved by the shareholders before encashing their dividend cheques.
Types of Dividend
There are three types of Dividends that shareholders can receive-
- Cash Dividends: You can receive these in the electronic transfer or the form of a cheque.
- Property Dividends: A shareholder can receive one of the company’s assets as a form of property dividends.
- Stock Dividends: These are additional stocks issued to the shareholder as a form of dividend return.
What is the Ex-Date of the Dividend?
The ex-date of the Dividend refers to the specific date before which a new shareholder must apply for a Dividend. If the shareholder buys the stock on the day or the ex-date of the Dividend, the seller will get a dividend. It is essentially a deadline for the new shareholders to come on board to get a dividend.