ITC Dividend History

ITC Dividend History

ITC(India Tobacco Company Limited) is an Indian conglomerate company that was founded on 24 August 1910. ITC headquarter is in Virginia House, Kolkata, West Bengal, India.

ITC’s key products include Consumer goods, Apparel, Education, Hotels and Resorts, Paperboards & Specialty Papers, Packaging, Agribusiness, Information technology, Cigarettes.

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.

ITC Dividend History

Announcement DateDividend (Rs)Dividend TypeDividend (%)Ex-Date
June 1, 20215.75Final575June 10, 2021
February 11, 20215Interim500February 22, 2021
June 26, 202010.15Final1015July 6, 2020
May 13, 20195.75Final575May 22, 2019
May 16, 20185.15Final515May 25, 2018
May 30, 20174.75Final475June 5, 2017
May 20, 20168.5Final850May 30, 2016
May 22, 20156.25Final625June 3, 2015
May 23, 20146Final600June 3, 2014
May 17, 20135.25Final525May 31, 2013
May 25, 20124.5Final450June 11, 2012
May 20, 20114.45Final445June 10, 2011
May 21, 201010Final1000June 9, 2010
May 22, 20093.7Final370July 13, 2009
May 23, 20083.5Final350July 16, 2008
May 25, 20073.1Final310July 16, 2007
May 26, 20062.65Final265July 10, 2006
May 27, 200531Final310July 18, 2005
May 13, 200420Final200July 19, 2004
May 8, 200315Final150July 14, 2003
May 14, 20020Final135July 12, 2002
April 26, 20010Final100July 3, 2001

The First time ITC gave dividends in 2003 of Rs. 15. For the last 10 years, ITC is given dividends every year. ITC 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.