NHPC Dividend History

nhpc dividend history

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 DateDividend (Rs)Dividend TypeDividend (%)Ex-Date
June 10, 20210.35Final3.5September 16, 2021
February 11, 20211.25Interim12.5February 22, 2021
June 29, 20200.32Final3.2September 17, 2020
February 7, 20201.18Interim11.8February 17, 2020
May 27, 20190.75Final7.5September 12, 2019
February 8, 20190.71Interim7.1February 18, 2019
May 28, 20180.28Final2.8September 12, 2018
January 23, 20181.12Interim11.2February 20, 2018
May 31, 20170.1Final1September 13, 2017
January 2, 20171.7Interim17January 19, 2017
May 30, 20160.58Final5.8September 8, 2016
February 10, 20160.92Interim9.2February 18, 2016
May 29, 20150Final4September 10, 2015
January 16, 20150Interim2January 29, 2015
July 7, 20140Final3September 11, 2014
May 28, 20130Final6August 30, 2013
May 25, 20120Final7August 31, 2012
June 30, 20110Final6September 2, 2011
May 25, 20100Final5.5September 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.