Demat Account: How to benefit from corporate announcements?

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Also Read: Demat Account: All you need to know about off-market transfer For instance, positive news, such as robust quarterly earnings or expansion plans, may prompt investors to retain their shares or even consider increasing their holdings. Conversely, negative developments might necessitate a reassessment of their investments or prompt selling. Moreover, many brokerage firms offer comprehensive tools and comparison features within demat accounts.

Investors should leverage these tools to compare their dividend-paying stocks with other stocks, enabling them to assess the dividend yield percentage. The most common corporate action announced by listed companies is dividends. Therefore, understanding the timeline for dividend payouts is crucial for investors aiming to maximise their returns from equity investments.

Here's a breakdown of the important dates related to dividends: Declaration date: This is the date when the Board of Directors of the company officially approves the dividend rate per share. Record date: Set by the Board of Directors, the record date determines which shareholders are eligible to receive dividends. Shareholders whose names appear on the list at the end of the record date are entitled to receive dividends.

Also Read: Demat Account: Benefits of handling mutual fund investments through demat Eligibility for dividend: To qualify for receiving dividends, investors must have shares in their demat account by the record date. Cum dividend date: This is the last date to purchase shares to become eligible for receiving dividends. Ex-dividend date: On this day, the price of the company's equity share is adjusted to reflect the dividend payout.