Key Points To Know About PFCś Fourth Interim Dividend Announcement
State-owned company Power Finance Corporation (PFC) has declared its fourth interim dividend for the current financial year (2024–25). A dividend is a part of the company’s profits that it pays to its shareholders.
Dividend Amount
- PFC will pay a dividend of Rs 3.50 per share.
- Each share has a face value (original value) of Rs 10.
- This means if you own 1 share of PFC, you will receive Rs 3.50.
Dividend Record Date
- The record date for this dividend is March 19, 2025. (A “record date” is the cut-off date the company uses to decide who is eligible to receive the dividend. If your name is on the company’s list of shareholders on this date, you will receive the dividend.)
Dividend Payment Date
- PFC says it will pay or dispatch this dividend on or before April 11, 2025.
- This means eligible shareholders can expect to receive the dividend by or before this date.
PFC’s Past Dividends
- PFC is known for rewarding its shareholders regularly. In the year 2024, PFC paid a total of Rs 15.75 per share through several dividend announcements.
- In 2023, PFC paid dividends three times and also issued bonus shares (1 bonus share for every 4 shares held).
- Earlier, in 2022, the company paid a total dividend of Rs 12.50 per share. In 2021, it paid Rs 15 per share.
Understanding PFC
- PFC is a public sector company and forms part of the BSE 100 index, indicating it is among the top 100 companies listed on the Bombay Stock Exchange.
- It has a dividend yield of around 3.22 per cent. A dividend yield is a way to measure the return you get from dividends compared to the price you paid for the stock.
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Detailed News
Power Finance Corporation (PFC), a government-owned company, has declared its fourth interim dividend for the financial year 2024–2025. This dividend decision means that the company will distribute part of its profits to people who own its shares, also known as shareholders. Dividends are often seen as a reward for those who invest in a company’s stock. When a company pays a dividend, it shows that it wants to share some of its earnings with its investors.
What Is an Interim Dividend?
An interim dividend is a payment made to shareholders before the company’s full-year financial results are final. Many companies pay dividends only once or twice a year, often after the final numbers are in.
However, some companies, including PFC, choose to reward their shareholders several times throughout the year by paying multiple interim dividends. This fourth interim dividend is one such installment for this financial year.
Also read:- Understanding the Difference Between Interim and Final Dividends: A Guide for Indian Investors
Details on PFCś Fourth Interim Dividend for the financial year 2024-2025
The PFC board has decided that it will pay Rs 3.50 per share to each shareholder. Each PFC share has a face value of Rs 10. The face value of a share is the original or nominal value assigned to it.
If you are new to stock investing, just remember that the face value is not always the same as the share’s market price, which can be higher or lower based on supply and demand.
The important point here is that for every single PFC share you own, the company will pay you Rs 3.50 as a dividend.
Dividend Percentage Explanation
The filing mentions that the dividend is 35% of the share’s face value. Since the face value is Rs 10, 35% of Rs 10 is Rs 3.50. Sometimes companies quote dividends as a percentage of the face value, while at other times they give the cash amount per share directly. Either way, the main takeaway is that if you own a share, you will get Rs 3.50 for each share you hold.
Record Date for the Dividend
PFC also announced a record date for this dividend, which is March 19, 2025 (a Wednesday).
The record date is very important for any investor who is looking forward to receiving dividends. If you want to be eligible for this dividend, your name must appear in the company’s list of shareholders on or before this date.
In simpler terms, if you buy PFC shares and hold them until the record date, the company will recognize you as a shareholder, and you will get the dividend.
However, keep in mind that stock exchanges usually follow a timeline called the “ex-dividend date,” which is generally one business day before the record date in Indian markets. On the ex-dividend date, anyone buying the stock will not be eligible for that particular dividend, because it is too close to the record date to be processed in time.
Therefore, if you want the dividend, you should purchase the shares (or already own them) well before the ex-dividend date. This is a key point for new investors, because some people mistakenly think buying on the record date itself ensures the dividend. You need to buy atleast one business day earlier than the record date.
Dividend Payment Timeline
According to the company’s announcement, the dividend will be paid to eligible shareholders on or before April 11, 2025.
This timeline means that, once the record date passes, PFC will process the payments and ensure that all shareholders receive their money by that date. Payment can happen in different ways, such as a direct deposit into your bank account or by sending a check. In most modern setups, if you hold shares in a Demat account, the payment usually goes directly to your linked bank account.
Past Dividends Paid by PFC / PFCś Dividend History.
This new announcement is not the first time PFC has given dividends in recent years. PFC had already paid five dividends in 2024, which added up to Rs 15.75 per share for the entire year 2024. This shows that PFC has a track record of distributing profits to its shareholders quite consistently.
In 2023, PFC paid dividends three times. Not only did the company pay these three dividends, but it also offered bonus shares at a ratio of 1:4. This means that for every four shares a shareholder held, they received one extra share for free.
Bonus shares do not directly put money into a shareholder’s bank account, but they do increase the total number of shares a person owns, which can be beneficial in the long run if the stock’s price goes up.
Before that, the company had paid a total dividend of Rs 12.50 per share in 2022. In 2021, the dividend paid to shareholders reached Rs 15 per share. Looking at these figures, it is clear that PFC has been consistently rewarding its investors with both decent dividend payouts and occasional bonus issues.
About PFC
PFC, short for Power Finance Corporation, is a public sector undertaking (PSU). It provides funding to various power projects and is involved in financing the electricity sector in India. Because it is a government-owned corporation, its policies and actions often align with the government’s broader goals for infrastructure and energy development.
PFC’s stock is also part of the BSE 100 index, which lists 100 leading companies on the Bombay Stock Exchange (BSE). Being part of the BSE 100 index often means that many investors and market analysts track the company’s performance.
What is Dividend Yield?
PFC has a dividend yield of 3.22%. Dividend yield is a ratio that shows how much a company pays out in dividends each year in relation to its stock price.
You calculate it by dividing the annual dividend per share by the current market price of the share, then multiply by 100 to get a percentage.
Example
If PFC’s share price was Rs 100, a Rs 3.22 annual dividend would be 3.22% of Rs 100.
Tryout:- Dividend Yield Calculator
A steady dividend yield can be attractive to certain types of investors, especially those who want to earn regular income from their investments. However, it is also important to look at other factors, such as the company’s overall financial health and future growth prospects.
Related Articles:
- How to Identify High-Dividend-Yield Stocks in India?
- How to Calculate Dividend Yield in Simple Steps?
Why Dividends Matter to Investors?
Dividends are a way for companies to share their profits with shareholders. Some investors focus heavily on dividend-paying stocks because they prefer a regular income. Others look at dividends as a sign of the company’s financial stability.
A consistent dividend history, like PFC’s, can suggest that the company is managing its finances well enough to keep distributing profits to its shareholders. However, dividends are not the only factor to consider when buying or holding a stock. You also need to look at the company’s business model, revenue, profits, debt levels, and long-term growth prospects.
How to Benefit from Dividend Announcements
If you plan to buy PFC shares to receive this dividend, you should ensure you do so before the ex-dividend date, which is usually set by the stock exchange and comes shortly before the record date.
Once you have purchased the shares and held them past the ex-dividend date, you will be eligible to receive the dividend amount. If you already own shares, you do not need to take any special action; the dividend will automatically be credited to your account.
Final Thoughts
PFC’s announcement of a Rs 3.50 dividend per share for the fourth time in the 2024–25 financial year underlines the company’s ongoing commitment to rewarding its shareholders. This payment is scheduled to reach shareholders on or before April 11, 2025. If you are new to investing, remember the following important points:
- Record Date: This is the deadline for being recognized as a shareholder eligible for the dividend.
- Ex-Dividend Date: This usually comes one business day before the record date. To get the dividend, you must buy or already own the shares before this day.
- Dividend Payment Date: This is when the company starts sending out the dividend to shareholders’ bank accounts or mailing checks.
- Company’s Dividend History: Look at how often and how much dividend a company has paid in the past, because consistent dividends can reflect stable performance.
- Other Financial Factors: Do not invest solely based on dividends. Consider the company’s future outlook, financial numbers, and risk factors.
Frequently Asked Questions (FAQs) Regarding Fourth Interim Dividend Announced by PFC?
1. What is the amount of the fourth interim dividend announced by PFC?
PFC has declared a dividend of Rs 3.50 per share. Since the face value of each PFC share is Rs 10, this translates to 35% of the face value.
2. When is the record date for this dividend, and why is it important?
The record date is March 19, 2025. You must be on the company’s list of shareholders by the close of this date to receive the dividend. In practical terms, you typically need to buy (or already own) the shares at least one trading day before this date (the ex-dividend date) to qualify.
3. What is the ex-dividend date, and how is it related to the record date?
The ex-dividend date is usually set one business day before the record date in Indian markets. If you purchase PFC shares on or after the ex-dividend date, you will not receive this particular dividend. For a dividend-paying stock, you must buy shares before the ex-dividend date to be eligible.
4. When will the dividend be paid out to shareholders?
PFC has stated it will pay or dispatch the dividend on or before April 11, 2025. Shareholders typically receive the amount directly in their linked bank accounts if their shares are held in Demat form.
5. How often does PFC pay dividends?
PFC has a history of declaring multiple dividends each year. For instance:
In 2024, PFC paid out Rs 15.75 per share in total.
In 2023, it paid dividends three times and also issued bonus shares.
In 2022, it paid Rs 12.50 per share in total.
In 2021, the payout was Rs 15 per share.
6. What is an interim dividend, and how is it different from a final dividend?
An interim dividend is declared and paid before the company’s full-year financial results are finalized. A final dividend is usually declared after the financial year ends and the company’s annual performance is reviewed. PFC often pays multiple interim dividends within a financial year.
7. What is the current dividend yield for PFC?
PFC has a dividend yield of around 3.22%. This yield is calculated by dividing the annual dividend per share by the current market price of the share, then multiplying by 100 to express it as a percentage.
8. Do I have to hold onto the shares after the record date to receive the dividend?
As long as your name is on the shareholder list on the record date (meaning you owned the shares before the ex-dividend date), you are entitled to receive the dividend. You can technically sell the shares after the ex-dividend date, and you should still receive the dividend.
9. What if I buy shares on the record date itself?
Buying on the record date itself typically does not qualify you for the dividend because the settlement process may not complete in time for you to be considered a shareholder of record on that day. You generally need to buy the shares at least one trading day before the record date (i.e., before or on the day prior to the ex-dividend date).
10. Why should I consider a company’s dividend history when investing?
A consistent dividend history, like PFC’s, can indicate the company’s ability to generate steady profits and share them with shareholders. However, dividends alone should not be your only criterion; always review the company’s overall financial health, future growth prospects, and risk factors before investing.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.
