Upcoming Dividend Alert! THESE Power PSU Stocks To Trade Ex-Dividend This Week; Buy Before Record Date?

Upcoming Dividend: Shares of Power Finance Corporation and Power Grid will remain in focus this week as the two PSU stocks will trade ex-dividend. Stable income and steady dividend yield have often kept investors hooked to these power PSU stocks.

Power Finance Corporation shares closed 0.3% lower at Rs 416 per share on BSE with a market capitalisation of Rs 1,37,432.74 crore. Whereas, Power Grid Corporation shares closed 0.07% higher at Rs 288.65 per share on BSE with a market capitalisation of Rs 2,68,461.93 crore.

Power Grid Dividend Record Date

Power Grid has fixed 19 August as dividend record date to determine the eligibility of shareholders. The Maharatna PSU had earlier announced that its board of directors had approved a 12% dividend to its shareholders.

The board of directors of the company had "recommended final dividend of Rs. 1.25/- per equity share of Rs. 10/- each (@12.5% of the paid-up equity share capital) for the Financial Year 2024-25 subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company."

The Power Grid Corporation Limited final dividend would be paid within 30 days from the date of its declaration at the annual general meeting.

The company's final dividend is in addition to the first Interim Dividend of Rs. 4.50/- per share announced on 4th December, 2024 and second interim dividend of Rs. 3.25/- per share paid on 28th February, 2025 for the Financial Year 2024-25.

PFC Dividend Record Date

Earlier in August, Power Finance Corporation had announced that its board of directors had approved a 37% dividend for its shareholders. PFC has fixed Monday, 18 August, as the dividend record date to determine teh eligibility of shareholders for corporate action.

PFC board approved the "Declaration of interim dividend @ Rs 3. 70/- {Rupees Three and Seventy Paisa only) per equity share {i.e. @ 37.00 %) {Subject to deduction of TDS) on the face value of the paid-up equity shares of U0/- each for the FY 2025-26."

Upcoming Dividend: Should You Buy PFC, Power Grid Before Record Date?

Both the companies recently declared their June quarter result for the financial year 2025-26( Q1 FY26). PFC reported a 21% year-on-year increase in its net profit to Rs 4,502 crore for the June quarter of FY26. The company's net interest income and net revenue also surged during the quarter.

PFC Share Price Recommendation

PFC reported a mixed performance for the June quarter where earnings were in line, as it included rating upgrades, but muted sequential loan growth, stable asset quality and benign credit costs quality, according to brokerage Motilal Oswal.

"We reiterate our BUY rating with an SoTP (Mar'27E)-based TP of INR490 (premised on 1.1x target multiple for the PFC standalone business and INR155/ share for PFC's stake in REC after a hold-co discount of 20%)," stated the brokerage in its report.

Power Grid Share Price Recommendation

Power Grid's total revenue increased by 1.7% annually to Rs 11,196 crore and its net profit declined by 2.5% to Rs 3,630.58 crore. The company maintained a robust project pipeline with strong capex outlook, however capitalisation is lagging the guidance, according to Mirrae Asset Sharekhan.

"Power Grid has a robust project pipeline worth Rs. 1,48,644 crore and Rs. ~1.4 lakh crore of projects are currently there for taking. We expect a decent 8% CAGR in PAT over FY2025-FY2027E. We maintain our Buy rating with an unchanged PT of Rs. 350. At CMP, it trades at 2.6x/2.4x its FY26/27 P/BV," noted brokerage in its report.

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