Raining dividends on Street: Firms loosen purse strings to help promoters

Companies advance payouts to help promoters save tax

In a record of sorts, about a dozen companies have announced dividends each day of this month. The trigger for the latest payouts is the transfer of dividend tax liability from companies to promoters. Market players say companies are advancing their dividend payouts to lower the tax burden of promoters.

So far this month, nearly 200 companies have declared interim dividends, which is more than double compared with the same period of last year. Also these payouts have been higher than last year.

Market experts say that based on profit projections for the next few quarters, companies are paying higher interim dividends.