Indian Dividend Stocks: Importance of Dividend Dates in Dividend Investing Approach

Indian Stock Market's two benchmarking indices BSE and NSE seen fall in their stocks. NSE was down 0.6% and it headed towards the biggest weekly fall in past 9 months. General sentiments from investors were like this all happened because of budget declaration but the inner story is slightly different as market fell because of financial health concerns of European banking system on Thursday.

Well moving further, I would like to put your focus again on dividend investment strategies which can earn you high yield dividend paying stocks from Indian stock market.In The Bottom part i will be discussing some important points about how to identify a good stock, which are the best dividend paying stocks to buy and which are the stocks that can provide you a consistent amount of good dividend income.

What is Dividend Investing Approach and why it is so Popular amongst Investors?

Dividend Investing Approach is a special strategy which is basically based on building a collection of blue-chip stocks from the stock market with big/fat/high dividend yields that generates money to investors throughout the year. Investors feel pleased to see the regular cash flow towards them generated by such dividend paying stocks in India. Dividends are paid by companies to shareholders usually whenever they earn profit in stock market. Such blue chip stock companies release cash to shareholders because they have to maintain their balance-sheets also and they can't carry a big amount of cash as profit either they can re-invest that profit back into their business or can distribute it amongst investors who holds their stocks.

If a company decides to pay dividends to investors after earning some considerable profit, first company's board directors will decide that how much dividend per share will be given to shareholders. This event is known as dividend announcement and the date on which this announcement comes is known as dividend announcement date. After that 3 dividend dates are issued named as dividend record date, Ex-dividend date, dividend payment date. Dividend record date is the date from which a company nominates the shareholders eligible for dividend payment. After record date is over dividend nominations are not accepted and on the payment date investors receives the dividend payment on their brokerage account, their bank account or in their mails.

What is the Importance of Dividend Dates:

Dividend Dates are important to focus as you have to claim for upcoming dividends on Indian stocks you hold before the record date is over. Also if you decides to sell a owned stock on it's ex-dividend date, you will still be able to receive it's dividend payment associated while if you sell it before it's ex-dividend date, you won't receive anything. Similarly if you are interested in any other dividend paying stocks which you do not own, if you buy it before it's ex-dividend date you will be able to get dividends associated with it. On the other hand if you buy it on it's ex-dividend date or later than you will not be getting anything. This whole scenario makes ex-dividend date an extremely important data to focus. Most of the investors just buy stocks associated with heavy dividends just before their ex-dividends and earns great returns.

Get Dividend Data like dividend dates, new dividend announcements, dividend yields, dividend history, 52 week High/low data, dividend payout changes, dividend policies, ex-dividend dates, etc. for all the Indian dividend paying stocks by in.dividendinvestor.com. Know which are the best dividend paying stocks and high dividends giving stocks best to buy in Indian stock market.Track your favourite Indian dividend paying stocks through tracker tool and screen desired high yield stocks through screener tool. Get email alert for any new dividend announcements by our ealert tool.

Related Tags: Indian dividend stocks - Indian stocks with dividends - Best Dividend Stocks in India