TVS Motor, REC, and More: The Ex-Dividend Stocks You Need to Know About!

Next week, investors looking for some extra cash in their portfolios should keep an eye on several well-known companies that will be going ex-dividend. Among them are TVS Motor, REC Limited, and a few other household names, all offering dividend payouts to their shareholders. If you’re wondering how this affects you, it’s important to understand what “ex-dividend” really means and how it impacts your investments.

What Does “Ex-Dividend” Really Mean?

Simply put, when a stock goes ex-dividend, it means that if you buy the stock on or after this date, you won’t be getting the next dividend payment. Only investors who own the stock before the ex-dividend date will be eligible to receive the payout.

For example, if TVS Motor announces a dividend with an ex-dividend date of March 27, 2025, you’ll need to have purchased the stock before that date to get the dividend. On the ex-dividend date, the stock price usually drops by the amount of the dividend, as the upcoming payout is no longer included in the stock price.

Understanding this concept can help you time your investments and make informed decisions about whether or not to buy into a stock before it goes ex-dividend.

TVS Motor Company’s Big Ex-Dividend Date

TVS Motor, one of the leading two-wheeler manufacturers in India, is going ex-dividend next week. If you’re holding shares of TVS Motor, March 27, 2025 is the day to mark on your calendar. Investors who own the stock before this date will receive the dividend payout, but those who buy it on or after the 27th won’t be eligible for this particular distribution.

TVS Motor has a strong track record of paying dividends, and this payout is likely to appeal to investors who want to receive passive income while holding a stock with solid growth potential. As the company expands into the electric vehicle (EV) market, the future looks promising, making it an attractive stock for long-term investors.

REC Limited: Another Big Name Paying Dividends

REC Limited, a public sector financial company in India, is another important name on the list of stocks going ex-dividend next week. Also scheduled for March 27, 2025, REC’s ex-dividend date is another opportunity for investors to grab a solid payout.

REC has long been a favorite for investors who seek reliable dividends. The company plays a key role in financing power sector projects across India, which positions it well for future growth. For those with an eye on stable, recurring income, REC Limited’s dividend is worth considering.

Other Big Stocks to Keep an Eye On

It’s not just TVS Motor and REC Limited that are trading ex-dividend next week. There are a few more noteworthy names that could pique your interest:

• Indian Oil Corporation (IOC): One of India’s largest oil companies, IOC’s dividend payouts have been a consistent source of income for long-term investors. If you’re looking for a blue-chip stock with a reliable dividend, IOC is a solid pick.

• Hindustan Zinc: This company, part of the Vedanta Group, has earned a reputation for high and consistent dividend payouts. Hindustan Zinc is a major player in the zinc industry, and its solid financials make it a strong contender for those seeking dividend income.

• Power Grid Corporation of India: As one of the largest power transmission companies in the country, Power Grid is another popular stock for dividend investors. The company has a solid history of stable payouts and offers investors exposure to the growing energy sector.

What Should Investors Know Before Going for Ex-Dividend Stocks?

While the idea of receiving dividends is appealing, there are a few things you should keep in mind before buying stocks that are about to go ex-dividend:

• Dividend Yield Matters: The dividend yield shows how much a company pays out in dividends compared to its stock price. While a high yield might look attractive, it’s important to assess whether the company can continue paying such dividends in the future. Make sure to look at the company’s overall financial health.

• Stock Price Adjustment: On the ex-dividend date, the stock price typically drops by an amount equal to the dividend. While this doesn’t affect the dividend you’ll receive, it’s something to consider if you’re planning on holding the stock for the short term.

• Company Health is Key: A company’s ability to continue paying dividends depends on its financial stability. Stocks like TVS Motor and REC are strong choices due to their solid financial positions and growth potential. Always check the company’s earnings and outlook before buying.

• Tax Implications: Depending on your country’s tax laws, dividend income might be taxed at a different rate than other types of income. It’s a good idea to consult a tax advisor to make sure you understand how dividends will impact your overall tax situation.

Why Ex-Dividend Dates Are Important for You

Ex-dividend dates are crucial for investors who are looking to receive dividend payouts. These dates tell you exactly when you need to own the stock to be eligible for the dividend. For some investors, capturing dividends is a great way to build passive income, while others may choose to reinvest the dividends for future growth.

Conclusion: Plan Ahead for Ex-Dividend Opportunities

With big names like TVS Motor, REC Limited, and others going ex-dividend next week, there’s an opportunity for investors to secure some extra income. However, to maximize your return, it’s important to understand how ex-dividend dates work and plan accordingly.

Make sure you’re buying stocks ahead of the ex-dividend date to take advantage of the upcoming payouts. Whether you plan to collect the cash or reinvest it, being strategic about when you buy can make all the difference in optimizing your returns.