Several major companies are set to trade ex-date this week for dividends and stock splits, a flurry of corporate actions expected to influence investor sentiment. Investors are keenly watching these developments to determine their eligibility for dividends and to assess the potential impact on stock prices. The ex-date is crucial because it determines eligibility for the upcoming dividend payout or stock split; investors must hold the shares before this date to qualify.

Dividends

Several prominent companies will trade ex-dividend this week, offering investors a last chance to qualify for their payouts.

• Tata Consultancy Services (TCS): TCS, a major player in the IT sector, will trade ex-dividend on June 3, 2025, for its final dividend of ₹30 per share. TCS has a history of rewarding shareholders through dividends, making it a favourite among investors seeking steady income.
• Tata Motors: Also trading ex-dividend on June 4, 2025, Tata Motors will offer a final dividend of ₹6 per share.
• Larsen & Toubro (L&T): L&T is set to trade ex-dividend on June 3, 2025, for its final dividend of ₹34 per share.
• Other notable dividend payouts: Other companies declaring dividends include Nuvama Wealth Management (interim dividend of ₹69 per share), Bank of Baroda (final dividend of ₹8.3 per share), Container Corporation of India (final dividend of ₹2 per share), and HDFC Asset Management Company (final dividend of ₹90 per share).

Understanding Ex-Dividend Dates

The ex-dividend date is when the equity share price adjusts to reflect the next dividend payout. On this day, the stock trades without the value of its next dividend payment. To receive the dividend, investors must be on the company's list by the end of the record date. Many companies have also announced other corporate actions, including bonus issues.

Stock Splits

In addition to dividends, one company of note is undergoing a stock split.

• Coforge: Coforge Ltd will undergo a stock split, with shares trading ex-split on June 4, 2025. The face value will change from ₹10 to ₹2 per share, with a split ratio of 1:5. This means that one share with a face value of ₹10 will become five shares with a face value of ₹2 each.

Understanding Stock Splits

A stock split increases the number of a company's outstanding shares to boost liquidity and make the stock more affordable for investors. While the number of shares increases, the company's overall market capitalization remains the same. Stock splits typically improve market liquidity. To be eligible for a stock split, investors must hold shares as of the record date.

Impact on Investors

Corporate actions like dividends and stock splits can significantly impact investor sentiment and stock price movements in the short term. Dividends provide income to shareholders, while stock splits can make the stock more accessible to a broader range of investors. However, investors need to be aware of the ex-date to ensure they are eligible for these benefits.

Additional Corporate Actions

Besides dividends and stock splits, some companies are also undertaking rights issues. Franklin Industries is set for an ex-rights event related to its upcoming rights issue.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.