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Join NowIn India, most companies pay dividends once or twice a year, depending on their profits, cash flow, and the decisions made by the Board of Directors. There are mainly two types of dividends — interim and final. An interim dividend is paid during the financial year, while a final dividend is declared after the company’s annual general meeting (AGM). Big companies like TCS, Infosys, and HDFC Bank often reward shareholders multiple times a year, while smaller firms may pay only once. The frequency of dividends depends on the company’s financial performance, available cash, and dividend policy.
Table of Contents
Types of Dividends in India
| Type of Dividend | When It’s Paid | Who Decides | Frequency |
|---|---|---|---|
| Final Dividend | After the end of the financial year (post AGM) | Board & shareholders | Once a year |
| Interim Dividend | During the financial year (quarterly or half-yearly) | Board of Directors | 1–3 times a year |
How Many Times Are Dividends Paid in India
Most Indian companies pay dividends one or two times a year.
- Large, profitable companies like TCS, Infosys, and HDFC Bank may pay 3–4 dividends a year (including multiple interim and one final dividend).
- Mid-sized or smaller companies usually pay once a year, often as a final dividend after their annual results.
The actual number depends on profitability, available cash, and the company’s long-term plans.
Example of Dividend Frequency in Popular Companies
| Company | Dividend Frequency | Type of Dividends Paid |
|---|---|---|
| TCS | 3–4 times a year | Interim + Final |
| Infosys | 2–3 times a year | Interim + Final |
| HDFC Bank | 1–2 times a year | Final or Interim + Final |
| ONGC | 2–3 times a year | Interim + Final |
What Decides How Often Dividends Are Paid
Several factors influence how frequently a company pays dividends in India:
- Company’s annual profit and retained earnings
- Cash flow and liquidity position
- Board of Directors’ decision based on company strategy
- Future expansion or debt repayment plans
- Dividend policy and past track record
Companies with stable profits and strong cash reserves are more likely to pay multiple dividends each year.
Interim vs Final Dividends: Key Difference
- Interim dividends are declared before the end of the financial year.
- Final dividends are declared after the financial year ends, during or after the AGM.
- Interim dividends can be paid multiple times in a year.
- Final dividends are paid only once a year.
- Interim dividends require only board approval, while final dividends need shareholder approval as well.
Dividend Payment Calendar in India
| Quarter | Possible Dividend Type | Example Month |
|---|---|---|
| Q1 (Apr–Jun) | Interim | June |
| Q2 (Jul–Sep) | Interim | September |
| Q3 (Oct–Dec) | Interim | December |
| Q4 (Jan–Mar) | Final | April–May |
This calendar shows the general pattern followed by many listed companies in India.
How Dividends Are Paid to Investors
Dividends are usually credited directly to shareholders’ bank accounts through ECS or NEFT.
You can check your dividend payment details in your broker app or demat account, under sections like “Dividend History” or “Corporate Actions.”
Popular apps such as Zerodha, Groww, and Upstox make it easy to track how much and how often dividends are received.
FAQs
1. Do all Indian companies pay dividends?
No. Only companies with sufficient profits and positive cash flow choose to distribute dividends. Some prefer to reinvest profits instead.
2. How many times does TCS pay dividends in a year?
TCS generally pays 3–4 dividends annually, including multiple interim and one final dividend.
3. Can dividends be paid monthly in India?
No. Indian companies do not pay monthly dividends. Most pay once or twice a year, depending on their policy.
4. Is dividend payment mandatory for companies?
No. It’s optional and depends on the board’s decision and the company’s financial position.
5. How can I check how many times I received dividends?
You can check your dividend records in your broker app, demat account statement, or the company’s investor relations website.
Conclusion
In India, most companies pay dividends once or twice a year, while some big and profitable ones reward shareholders up to three or four times. The frequency depends on the company’s earnings, dividend policy, and board approval. If you’re an investor, it’s wise to check a company’s dividend history and consistency before investing. Regular dividend-paying stocks often indicate financially stable and reliable companies.
