Over 45 companies, including Mahindra & Mahindra, Tech Mahindra, and Swaraj Engines, are set to trade ex-dividend between June 29 and July 3, 2026. Investors must own these shares before the ex-date to be eligible for the payouts. This period sees significant cash returns across various sectors.
What Happened
The Indian stock market is heading into a busy period for income-focused investors, with more than 45 companies scheduled to go ex-dividend between June 29 and July 3, 2026. This group includes well-known names such as Mahindra & Mahindra, Tech Mahindra, Bajaj Finance, and Bajaj Finserv. When a company goes ex-dividend, it means the stock is trading without the benefit of the upcoming dividend payment. Investors who buy the stock on or after the ex-dividend date will not be eligible to receive the dividend declared for that period.
The Ex-Dividend Impact on Price
It is important for investors to understand that on the ex-dividend date, the stock price typically adjusts downward by approximately the amount of the dividend paid. For instance, if a company announces a dividend of ₹10 per share, the market price usually reflects this reduction when the stock opens on the ex-date. This is a mechanical adjustment to the share price, as the cash is leaving the company's balance sheet to be paid out to shareholders. Investors should not view this price drop as a loss in value, but rather as a reflection of the cash payout.
Notable Dividend Payouts
Several companies have declared significant payouts for the upcoming week. Swaraj Engines leads the group with a final dividend of ₹110 per share, with an ex-dividend date of July 3, 2026. Bajaj Holdings & Investment has also announced a substantial return, consisting of a final dividend of ₹80 per share combined with a special dividend of ₹50 per share. Other notable payouts include Maharashtra Scooters at ₹60 per share, JSW Dulux at ₹50 per share, and SKF India at ₹40 per share.
Prominent auto and tech companies are also part of this cycle. Tech Mahindra is set to distribute ₹36 per share, while Mahindra & Mahindra and Escorts Kubota are both offering ₹33 per share, with their ex-dividend dates aligned for July 3, 2026. Thermax has declared a total payout of ₹20 per share, split between a final dividend and a special dividend.
What Investors Should Monitor
For investors, the timing of these events is critical. To be eligible for these dividends, one must be a shareholder of record by the close of business on the day before the ex-dividend date. Companies like Jyothy Labs and Kansai Nerolac Paints will go ex-dividend on June 29, 2026, while Bajaj Finserv is scheduled for June 30.
Beyond the dividend amount, investors may want to consider the tax implications, as dividends are generally taxable in the hands of the recipient in India according to their applicable income tax slab. Additionally, companies paying large special dividends, such as Bajaj Holdings & Investment, are often using excess cash reserves or one-time gains to reward shareholders. Tracking whether a company has a history of consistent dividend payments or if these payouts are irregular can help in understanding the company's capital allocation strategy.