A dividend is a part of a company’s profits shared with its shareholders, either as cash (credited to your bank account) or as stock dividend/bonus shares (credited to your demat account).

Here are the key things to keep in mind:

1. Eligibility – You must hold shares in your demat account on the record date announced by the company to receive dividends.
2. Credit Timeline – Cash dividends are usually credited to your registered bank account within a few working days after the record date. Bonus shares, if issued, may take longer due to regulatory approvals and listing.
3. Price Adjustment – On the ex-dividend date, the share price usually falls by the dividend amount since that value is paid out to shareholders.
4. Non-Receipt Issues – If your dividend isn’t credited, check and update your bank details with your broker/DP. Unclaimed dividends are transferred to the IEPF (Investor Education and Protection Fund) after 7 years.