Motherson Sumi Dividend History

motherson sumi Dividend History

Motherson Sumi Systems Limited is an Indian manufacturer and global supplier of automotive components that was founded on 1 January 1986 by S. L. Sehgal, Vivek Chaand Sehgal. Motherson Sumi Systems Limited’s headquarter is in Noida, Uttar Pradesh, India.

Motherson Sumi Systems Limited’s key products include Automotive parts, Material-handling equipment.

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.

Motherson Sumi Dividend History

Announcement DateDividend (Rs)Dividend TypeDividend (%)Ex-Date
June 2, 20211.5Final150September 3, 2021
February 28, 20201.5Interim150March 12, 2020
May 27, 20191.5Final150August 8, 2019
May 23, 20182.25Final225August 8, 2018
May 19, 20172Final200August 14, 2017
March 11, 20162.5Interim250March 22, 016
May 12, 20150Final300July 23, 2015
May 22, 20140Final250August 19, 2014
May 17, 20130Final200August 21, 2013
May 28, 20120Final225August 31, 2012
May 25, 20110Final275August 25, 2011
May 18, 20100Final175August 18, 2010
June 30, 20090Final135September 16, 2009
June 2, 20080Final135August 1, 2008
May 28, 20070Final150July 23, 2007
May 30, 20060Final115July 28, 2006
May 27, 20050Final100August 11, 2005
May 29, 20040Final100September 9, 2004
May 29, 20030Final75September 9, 2003
June 13, 20020Final50August 28, 2002
June 20, 20010Final40August 07, 2001

For the last 10 years, Motherson Sumi Systems Limited is given dividends every year. Motherson Sumi Systems Limited 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.