Tata Power Dividend History

tata power dividend history

Tata Power is an Indian electric utility company that was founded on 18 September 1919 by Dorabji Tata. Tata Power’s headquarter is in Bombay House, 24 Homi Mody Street, Mumbai, Maharashtra, India.

Tata Power’s key products include Electrical power & Natural gas. The key services offered by Tata Power are Electricity generation and distribution, natural gas exploration, production, transportation, and distribution.

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.

Tata Power Dividend History

Announcement DateDividend (Rs)Dividend TypeDividend (%)Ex-Date
May 12, 20211.55Final155June 17, 2021
May 19, 20201.55Final155July 14, 2020
May 2, 20191.3Final130June 4, 2019
May 2, 20181.3Final130July 12, 2018
May 19, 20171.3Final130August 10, 2017
May 24, 20161.3Final130September 7, 2016
May 19, 20150Final130July 20, 2015
May 29, 20140Final125July 23, 2014
May 30, 20130Final115July 26, 2013
May 22, 20120Final125July 24, 2012
May 19, 20110Final125August 2, 2011
May 25, 20100Final120August 16, 2010
May 28, 20090Final115July 14, 2009
June 23, 20080Final105August 18, 2008
May 31, 20070Final95July 17, 2007
May 29, 20060Final85July 7, 2006
May 30, 20050Final75July 12, 2005
May 21, 20040Final70June 8, 2004
May 28, 20030Final65July 4, 2003
May 30, 20020Final0July 18, 2002
April 29, 20020Interim50May 29, 2002
April 30, 20020Interim50May 29, 2002
May 23, 20010Final50July 9, 2001

For the last 5 years, Tata Power is given dividends every year. Tata Power 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.