National Hydroelectric Power Corporation(NHPC) is an Indian government hydropower board under the ownership of the Ministry of Power, Government of India that was founded in 1975 by Mohamed Premji. NHPC headquarter is in Faridabad, Haryana.
NHPC is listed on the National Stock Exchange and Bombay Stock Exchange on 1 September 2009. NHPC’s key products include Electricity generation, energy trading.
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.
NHPC Dividend History
|Announcement Date||Dividend (Rs)||Dividend Type||Dividend (%)||Ex-Date|
|June 10, 2021||0.35||Final||3.5||September 16, 2021|
|February 11, 2021||1.25||Interim||12.5||February 22, 2021|
|June 29, 2020||0.32||Final||3.2||September 17, 2020|
|February 7, 2020||1.18||Interim||11.8||February 17, 2020|
|May 27, 2019||0.75||Final||7.5||September 12, 2019|
|February 8, 2019||0.71||Interim||7.1||February 18, 2019|
|May 28, 2018||0.28||Final||2.8||September 12, 2018|
|January 23, 2018||1.12||Interim||11.2||February 20, 2018|
|May 31, 2017||0.1||Final||1||September 13, 2017|
|January 2, 2017||1.7||Interim||17||January 19, 2017|
|May 30, 2016||0.58||Final||5.8||September 8, 2016|
|February 10, 2016||0.92||Interim||9.2||February 18, 2016|
|May 29, 2015||0||Final||4||September 10, 2015|
|January 16, 2015||0||Interim||2||January 29, 2015|
|July 7, 2014||0||Final||3||September 11, 2014|
|May 28, 2013||0||Final||6||August 30, 2013|
|May 25, 2012||0||Final||7||August 31, 2012|
|June 30, 2011||0||Final||6||September 2, 2011|
|May 25, 2010||0||Final||5.5||September 7, 2010|
For the last 5 years, NHPC is given dividends every year. NHPC 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.