Dividends

Dividends are a way for companies to distribute excess cash to shareholders, often indicating financial strength and stable earnings. They can enhance investor demand, influence capital allocation, and are typically associated with mature companies with steady cash flows.

Reclassifying trading profits as business income may lower tax liabilities for some investors. This classification depends on factors such as trading frequency and intent. Taxpayers must consistently apply their chosen classification to avoid disputes with the Income Tax Department during audits.

The move to treat the proceeds of buybacks as capital gains and not dividends addresses a complex and widely criticised tax rule that has led to punitive outcomes for promoters and shareholders.

Hexaware Technologies will determine shareholders eligible for a ₹5.75 dividend on October 10, 2025, with payouts on October 18. Investors must own shares before the record date to qualify. Jefferies initiated coverage on the stock in September with a ‘Buy’ rating and set a target price of ₹930.

Fourteen stocks have revised their record date for dividends following a change in the settlement holidays of the Indian stock market, according to an exchange circular.

Elcid Investments has announced a record date of July 23, 2025, for its dividend, declaring ₹25 per share for the financial year ending March 31, 2025. This continues the company’s practice of rewarding shareholders, having done so in the previous two financial years.