When to expect a dividend payment?
To determine whether you should get a dividend, you need to look at two important dates. They are the record date or date of record and the ex-dividend date or ex-date. When a company declares a dividend, it sets a record date when you must be on the company’s books as a shareholder to receive the dividend. The record date: this date determines all shareholders of record who are entitled to the dividend payment and it usually occurs two days after the ex-date. The payment date: this is when dividend payments are issued to shareholders and it’s usually about one month after the record date.You can expect to receive dividends in your bank account linked to your Demat account within 25 to 45 business days after the record date. The record date is when the company identifies the eligible shareholders for the dividend.Ex-dividend date and its role For a dividend to be qualified, the holding period must include the ex-dividend date. This means that if you buy the stock before the ex-dividend date and hold it for more than 60 days during the 121-day period, the dividend will be considered qualified. Let’s look at an example.Payment timeline: Dividends are usually credited between 30 to 45 days after the ex-date/record date.
How to get 50,000 dividends per month?
This means you would need to invest roughly 1,000,000 Rupees. Calculate the Target Investment To earn ₹1 lakh from dividends, let’s do a simple calculation. At an average dividend yield of 3%, you’d need to invest around ₹33–34 lakh. However, at a higher yield of 5%, the required investment drops significantly to around ₹20 lakh.