Yesterday’s announcement of ₹9.5 dividend will obviously cheer shareholders of Vedanta. But the real message isn’t in the actual amount of dividend.
The wording - “First interim” is the real message. And it indicates that there will be at least TWO more dividend payments this year!
If it was just one more final dividend, this wouldn’t be “First Interim” - it would just be “Interim” dividend!
As per companies act, dividend can’t be announced on “expectations” - only based on actual cash on hand. And last week’s dividend announced by Hindustan Zinc has not yet hit Vedanta account. So the directors couldn’t announce a bigger dividend on Saturday, and could only make it ₹9.5 per share.
That’s why they have clearly indicated that there are multiple payments coming.
Expect the stock to shoot up dramatically this week!
The wording - “First interim” is the real message. And it indicates that there will be at least TWO more dividend payments this year!
If it was just one more final dividend, this wouldn’t be “First Interim” - it would just be “Interim” dividend!
As per companies act, dividend can’t be announced on “expectations” - only based on actual cash on hand. And last week’s dividend announced by Hindustan Zinc has not yet hit Vedanta account. So the directors couldn’t announce a bigger dividend on Saturday, and could only make it ₹9.5 per share.
That’s why they have clearly indicated that there are multiple payments coming.
Expect the stock to shoot up dramatically this week!