LIC Dividend Alert: Last Chance to Qualify for ₹10 Per Share Payout

Investors looking to tap into the dividend yields of India’s largest insurer face a critical deadline today. To qualify for the Life Insurance Corporation of India’s (LIC) final dividend of ₹10 per share, shareholders must ensure their holdings are reflected in their demat accounts by the upcoming record date.

Understanding the Deadline and T+1 Settlement

The Life Insurance Corporation of India has fixed June 25 (Thursday) as the official record date to determine shareholder eligibility for its final dividend. Under the current SEBI-mandated T+1 settlement cycle, investors cannot wait until the record date itself to purchase shares.

To ensure the shares are credited to a demat account by Thursday, investors must complete their purchase by today. This timing is crucial because the settlement process requires at least one full trading day to finalize the transfer of ownership, making today the effective last opportunity for new buyers to participate in the payout.

Dividend Details and Shareholder Approvals

The proposed final dividend of ₹10 per share is for the financial year 2025-26. This announcement was originally made in May alongside the company's Q4 results. While the dividend has been proposed, it remains subject to formal approval from shareholders during the upcoming Annual General Meeting (AGM), which is scheduled to take place on July 27.

For context, this payout follows a period of significant corporate actions by the insurance giant. Last year, LIC distributed a higher dividend of ₹12 per share. Additionally, the company recently concluded a massive 1:1 bonus issue in late May, where it issued one fully paid-up equity share for every share held, capitalizing up to ₹6,325 crore from its substantial reserves of nearly ₹1.5 lakh crore.

Broader Market Context: Dividend Season in Full Swing

LIC is not alone in its dividend distributions this week. Several other prominent Indian companies have also fixed June 25 as their record date, signaling a busy period for income-seeking investors.

Notable high-value payouts include Supreme Industries, which leads the pack with a dividend of ₹25 per share. Other significant players hitting the record date include Nippon Life AMC (₹12.5 per share), Care Ratings (₹14 per share), and IndusInd Bank (₹1.5 per share). The list extends across various sectors, with companies like Dr Lal PathLabs (₹4) and Alkyl Amines Chemicals (₹10) also making their payouts.

Key Takeaways

  • Critical Deadline: Today is the final day to purchase LIC shares to ensure eligibility for the ₹10 per share dividend via the T+1 settlement cycle.
  • Record Date: June 25 is the official date used to identify eligible shareholders; the dividend is subject to AGM approval on July 27.
  • Recent Momentum: This dividend follows LIC's recent 1:1 bonus issue, highlighting the company's active approach to rewarding its shareholder base.