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Australian investors, mark your calendars! Next week, a number of prominent companies will begin trading ex-dividend, meaning you'll need to be on the books by the record date to receive the upcoming dividend payment. This article breaks down the key companies, including ITC, Bajaj Finance, Infosys, and more, trading ex-dividend, and explains what it means for your portfolio. Stay informed and make smart investment decisions with our comprehensive list.

What Does 'Ex-Dividend' Mean?

The term 'ex-dividend' refers to the date after which a share is traded without the right to receive the next dividend payment. Essentially, it's the cut-off date. If you buy the stock on or after the ex-dividend date, you won't be entitled to the declared dividend. You'll benefit from the share price, but not the dividend.

Key Companies Trading Ex-Dividend Next Week

Here's a rundown of the significant companies expected to trade ex-dividend starting Monday. Please note: Dates and dividend amounts can change, so always verify with your broker and the company's official announcements.

• ITC: A major player in the FMCG and tobacco industries, ITC consistently delivers dividends.
• Bajaj Finance: A leading non-banking financial company (NBFC) known for its robust dividend payouts.
• Infosys: A global IT services giant, Infosys is a favourite among dividend-seeking investors.
• Angel One: A brokerage firm that has been steadily increasing its dividend payments.
• Tata Consumer Products: A well-established consumer goods company with a history of dividend distributions.
• L&T Finance: Part of the Larsen & Toubro group, offering financial services and often rewarding shareholders.
• Colgate Palmolive (India): A consumer goods staple known for its consistent performance and dividends.

Why is Knowing Ex-Dividend Dates Important?

Understanding ex-dividend dates is crucial for several reasons:

• Dividend Income: If you're relying on dividend income, ensuring you own the shares before the ex-dividend date is paramount.
• Share Price Impact: Typically, the share price will fall by approximately the dividend amount on the ex-dividend date. This is because the dividend is effectively being removed from the company's value.
• Investment Strategy: Knowing these dates allows you to strategically plan your purchases and sales to maximize your returns.

Important Considerations

Before making any investment decisions based on ex-dividend dates, remember:

• Do Your Research: Thoroughly investigate each company's financial health and dividend history.
• Brokerage Fees: Factor in any brokerage fees associated with buying or selling shares.
• Tax Implications: Dividends are taxable income. Consult a financial advisor for personalized tax advice.
• Market Volatility: Share prices can fluctuate, so be aware of market conditions.

Stay informed about these important dates and make well-considered investment choices to help grow your portfolio! Always consult with a qualified financial advisor before making any investment decisions.