RIL shares will be ex-dividend this week. Know what this means for investors

Reliance Industries has announced a dividend of Rs 8 at a face value of Rs 10 for the financial year 2022.

RIL shares will be ex-dividend this week

The shares of the country’s largest company Reliance Industries will become ex-dividend on the stock exchange this week. That is, if you belong to Reliance Industries dividend If you want to take advantage of this, then this date is very important for you. Reliance Industries has announced a dividend of Rs 8 at a face value of Rs 10 for the financial year 2022. Next week is the AGM of Reliance Industries, in which the decision of dividend can be stamped. According to the company, there is a plan to distribute the dividend within a week of the AGM.

What is RIL’s Dividend Plan

Earlier this month, while announcing the results of the June quarter, the company had informed that the company has set August 19 as the record date for dividend payment for the financial year 2021-22. In such a situation, the stock will become ex-dividend tomorrow. The 45th AGM of RIL is scheduled to be held on August 29. This meeting will be held through video conferencing at 2 pm. The dividend is expected to be stamped in this meeting.

what is dividend

Simply put, dividends are another source of income for long-term investors. Profit-making companies distribute some of this profit to their shareholders. Dividend distribution is not mandatory as per the rules. Companies announce it on the basis of their calculations. Generally, companies declare dividends to attract investors towards stable performing stocks. Many companies which are famous as dividend stocks give so much dividend to their investors throughout the year which is not available even in bank FDs. These companies include names like REC, Steel Authority, Coal India.

What is ex-dividend and record date

Record date means the date till which the share in whose name the share is held will get the benefits related to the share. If August 19 is the record date for dividend, then on the 19th, the person in whose name the shares are held will get the dividend. The ex-dividend date is kept one day before the record date. That is, if you have done a deal to buy shares on or after the date of dividend, then you will not get the benefit of dividend. Actually the deals are on T+2 basis, so if you have done a deal to buy the stock on the 18th, then you will get the delivery of the stock on the 20th. That is, there was no share in your name on the record date. That is, if you want to take advantage of the dividend, then you have to buy the shares before the ex-dividend date.