Special Dividends: Companies listed on the stock market present their results every quarter. In these quarterly reports, the company provides information on its business expansion and corporate actions. We would like to inform you that the quarterly reporting season is currently underway, and at this time the listed companies in the market are presenting their results for the second quarter. However, along with the results, some companies sometimes declare dividends to please investors. In a financial year, a company pays dividends to its investors in a variety of ways. This includes dividends, interim dividends, final dividends and special dividends. The company pays dividends from its profits. A dividend in Hindi is called a dividend and is only paid out as part of the profits. Find out here when and to which investors the company pays special dividends.
What are special dividends?
The only difference between a dividend and a special dividend is that investors receive a higher amount from the company through the special dividend. A special dividend is a lump sum payment that is not paid every quarter like a regular dividend. Please note that special dividends are always issued in a liquid form.
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Please inform that special dividends are paid by the company only once. Special dividends are paid during various events such as exceptional earnings, asset sales and other types of unforeseen events. Recently, Tech Mahindra, a powerful company in the IT sector, announced a special dividend of 360 percent for its investors.
These dates are important during dividends
During dividends, investors have to take care of many debts. This includes dates such as dividend declaration date, record date, ex-dividend date, dividend payout date. The first is the dividend declaration date, and on this date the dividend is declared by the board of the company. After that, the recording date is important. The date of record means that prior to that time, the company has a record of which investors own shares in the company.
Ex-dividends and date of payment of dividends
In addition, the ex-dividend date is also very important. This date indicates that prior to this date, investors must have the company’s shares in the dematch account. On the other hand, the date of payment of dividends is the date of payment of dividends.