Dividend Bonanza: Over 60 Stocks Including ONGC & NTPC Go Ex-Dividend Today

Today, September 4, 2025, is a significant day for income-focused investors in the Indian stock market. More than 60 companies are trading ex-dividend, featuring prominent public sector undertakings (PSUs) like ONGC, NTPC, and Oil India.

For beginner and intermediate investors, days like these offer a fantastic real-world lesson in how dividends work and their impact on stock prices. If you hold any of these stocks, it’s a day to take note. If you were planning to buy them for the dividend, you’re a day too late for this payout cycle. Let’s break down what’s happening and what it means for you.

What’s Happening in the Market Today?

A wave of companies across various sectors have their shares trading “ex-dividend” on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) today. This means that anyone who buys shares of these companies on or after September 4th will not be eligible to receive the recently declared dividend.

The list is extensive, but some of the most-watched stocks include:

• Oil and Natural Gas Corporation (ONGC): The state-owned energy giant has a final dividend of ₹1.25 per share.
• NTPC Ltd: India’s largest power utility is paying out a final dividend of ₹3.35 per equity share.
• Oil India Ltd: Another major player in the oil and gas sector, Oil India, has declared a final dividend of ₹1.50 per share.
• General Insurance Corporation of India (GIC Re): Offering a substantial dividend of ₹10.00 per share.
• Kalyan Jewellers India: The popular jewellery brand is rewarding shareholders with a final dividend of ₹1.50 per share.

Other notable companies on the list include Gujarat Gas, Metro Brands, Finolex Cables, and Clean Science and Technology, making it a broad-based dividend event.

Understanding Key Dividend Terms

For those new to the market, the terminology around dividends can be confusing. Here’s a simple breakdown:

• Declaration Date: The day the company’s Board of Directors announces its intention to pay a dividend.
• Ex-Dividend Date: This is the crucial date for traders. It is typically set one business day before the Record Date. Due to the T+1 settlement cycle in India, you must buy the stock before the ex-dividend date to be eligible for the dividend. If you buy on or after this date, the previous owner receives the payout.
• Record Date: This is the cut-off date set by the company to determine which shareholders are eligible. To be on the company’s books, you must have purchased the shares before the ex-dividend date. For most companies mentioned, the record date is today, September 4, 2025.
• Payment Date: The day the dividend is actually transferred to the bank accounts of eligible shareholders. For NTPC, this is scheduled for September 25, 2025.

In short, to receive the dividend from these companies, you needed to have purchased their shares by the closing bell yesterday, September 3, 2025.

Market Reaction and What to Expect

Typically, on the ex-dividend date, a stock’s price opens lower by an amount roughly equal to the dividend per share. For example, if a stock closed at ₹100 yesterday and has a dividend of ₹2, you can expect it to open around ₹98 today, all other factors remaining constant.

This happens because the dividend is a cash payout from the company’s value to its shareholders. Once the company is obligated to pay that cash, its net worth is reduced by that amount, and the stock price adjusts accordingly. This is not a cause for panic; it’s a normal market mechanism. The money isn’t lost—it’s simply moving from the company’s balance sheet to your bank account (if you were an eligible shareholder).

A Guide for Retail Investors

1. Don’t Chase Dividends Blindly: Buying a stock just before its ex-dividend date to capture the payout (a strategy known as “dividend stripping”) is generally not advisable for long-term investors. The price drop on the ex-date usually cancels out the immediate gain from the dividend, and there may also be tax implications to consider.

2. Focus on Fundamentals: If you already own these stocks as part of a long-term strategy, today is merely a procedural event. The dividend you receive is part of your total return on investment. Continue to focus on the company’s financial health, growth prospects, and overall market position.

3. Reinvest or Spend? When you receive your dividend, you have a choice. You can use it as income or reinvest it to buy more shares, which is a powerful way to compound your wealth over time. Many brokerage platforms offer Dividend Reinvestment Plans (DRIPs) that can automate this process for you.

What to Watch Next

• Price Settlement: Observe how these stocks behave post-dividend. Do they recover the dividend amount quickly, or do they drift lower? This can sometimes offer a hint about the stock’s underlying strength.
• Payment Dates: If you are an eligible shareholder, keep an eye on the payment dates to ensure the dividend is credited to your linked bank account.
• Future Announcements: For dividend-paying companies, track their quarterly results and future dividend announcements. A history of consistent and growing dividends is often a sign of a healthy, stable company.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Please conduct your own research before making any investment decisions.