Market Update: HUL and Dabur Go Ex-Dividend from Tomorrow
Activity increased in the Indian stock market today as the country’s two leading FMCG giants, Hindustan Unilever Ltd (HUL) and Dabur India Ltd, traded actively on the last day to qualify for an interim dividend to investors. Both companies are scheduled to pay ex-dividend on November 7, making today (November 6) the last trading day for shareholders to buy and hold these shares to be eligible for the dividend payment.
What does this mean for investors?
The ex-dividend date marks the cutoff after which new purchasers of a stock are not entitled to receive the upcoming dividend. Investors who hold shares before the ex-dividend date are eligible for the declared dividend payment.
In this case, both HUL and Dabur India have declared interim dividends for the financial year 2025, and shareholders whose names appear on the company records as of the record date (November 7) will get the benefit.
Market analysts said dividend-seeking investors were particularly active today, taking advantage of the last buying opportunity before the stock went ex-dividend yesterday.
HUL’s Dividend Announcement
Hindustan Unilever Ltd (HUL), India’s largest FMCG company, announced an interim dividend of ₹18 per share for FY 2024–25. The company’s board approved the payout following strong quarterly earnings and consistent revenue growth in key segments like home care, beauty, and personal care.
- Dividend per share: ₹18
- Record date: November 7, 2025
- Ex-dividend date: November 7, 2025
- Dividend payment date: Expected within 30 days of record date
The company reported a net profit of ₹2,806 crore for the September quarter, up around 3.9% year-on-year, supported by steady demand and margin improvement.
HUL’s stock opened firm on the NSE at ₹2,520 per share and traded between ₹2,505 and ₹2,548 during intraday sessions, reflecting mild gains amid broader market volatility.
Dabur India Declares Interim Dividend
Dabur India Ltd, another major FMCG company, declared an interim dividend of ₹2.75 per share. The decision was taken after the company reported strong earnings in the September quarter due to strong sales in the health care and household consumer goods sectors.
- Dividend per share: ₹2.75
- Record date: November 7, 2025
- Ex-dividend date: November 7, 2025
- Dividend payment: Expected by mid-November
During today’s trade, Dabur India stock traded around ₹550 on BSE, showing minor fluctuations as investors balanced between dividend entitlement and short-term market positioning.
Understanding Ex-Dividends and Record Dates
To receive a company’s dividend, investors must own shares before the ex-dividend date. Since share settlement in India follows a T+1 cycle, buyers have to buy stocks at least a day before the record date.
- Record Date: The day on which the company finalizes its list of eligible shareholders.
- Ex-dividend date: The trading day when the stock begins trading without the price of the upcoming dividend.
This means that investors who bought shares of HUL or Dabur after November 6 will not be entitled to receive the interim dividend declared by these companies.
Broader Market Reaction
The Nifty FMCG index remained largely stable today, showing resilience amid mixed global cues. While some profit-booking was observed in select counters, the market saw dividend-focused buying in HUL, Dabur, and ITC.
- The Nifty 50 traded slightly higher by 0.3%, supported by gains in the FMCG and IT sectors.
- HUL closed marginally in green, while Dabur witnessed light profit booking in late trade.
Analysts suggested that both stocks have shown long-term growth potential, and dividend payouts further enhance their attractiveness for income-oriented investors.
What Analysts Say
Market experts believe that interim dividends reflect the financial strength and stable cash flows of leading FMCG firms.
According to Motilal Oswal Securities, “HUL continues to maintain strong profitability metrics and consistent dividend history, making it a preferred defensive stock in uncertain markets.”
Similarly, Kotak Institutional Equities stated that Dabur’s balanced growth across segments and healthy cash reserves make its dividend declaration sustainable and appealing for long-term investors.
Both brokerages maintain a ‘Buy’ to ‘Accumulate’ rating on HUL and ‘Hold’ on Dabur with positive long-term outlooks.
Impact on Investors
For retail investors, dividend announcements like these are an opportunity to earn steady income while holding high-quality stocks. However, financial advisors also caution against buying purely for dividends, as stock prices often adjust downward on the ex-dividend date to reflect the payout.
For example, if a company declares a dividend of ₹18 per share, its stock might open lower by a similar amount the next day when it turns ex-dividend.
Therefore, experts recommend evaluating a company’s long-term fundamentals, valuation, and growth outlook rather than short-term dividend gains alone.
Dividend Trend in the FMCG Sector
The FMCG sector has historically been among the most consistent dividend-paying segments in the Indian market.
Companies like HUL, Dabur, Nestlé India, and ITC regularly distribute dividends, supported by steady cash flows and low capital expenditure requirements.
In the September quarter, several FMCG players reported modest volume growth amid rural recovery and stable input costs. With inflation cooling, companies are expected to maintain or increase dividend payouts in the upcoming quarters.
Key Takeaways for Investors
- Today (Nov 6) is the last trading day to buy HUL and Dabur shares for interim dividend eligibility.
- Both stocks will turn ex-dividend on November 7.
- HUL’s interim dividend: ₹18 per share; Dabur’s: ₹2.75 per share.
- Record date for both: November 7, 2025.
- Investors should focus on long-term fundamentals rather than short-term dividend arbitrage.
Conclusion
As the trading session closes today, investors eye the final opportunity to lock in interim dividends from Hindustan Unilever Ltd and Dabur India Ltd. With both stocks turning ex-dividend tomorrow, today’s trades are crucial for dividend eligibility.
The move highlights how dividend events continue to influence short-term market activity, especially in high-quality FMCG stocks known for steady returns and reliability.
For investors, the day underscores a timeless investment principle — while dividends provide immediate income, it’s sustained growth and business fundamentals that truly create long-term wealth.
