Shares of IT major Tata Consultancy Services (TCS) will turn ex-dividend today. The IT major had announced an interim dividend of Rs 8 per share and a special dividend of Rs 67 per share earlier.
The record date for the two dividends is January 17. The dividends would be paid to those shareholders, whose names will appear on the register of members of the company or in the records of the depositories as beneficial owners of the shares, as on Tuesday. The two dividends will be paid to eligible shareholders on February 3.
Data available with corporate database AceEquity suggests TCS' dividend yield stood at 1.27 per cent as of Friday's close, which was lower than Wipro's 1.52 per cent dividend yield. It was also lower than Tech Mahindra's 4.49 per cent, HCL Technologies' 3.90 per cent and Infosys' 2.06 per cent yield.
TCS announced a total dividend of Rs 43 per share (yield 1.15 per cent) for FY22, totalling Rs 7,686 crore. Wipro announced Rs 6 per share in dividend for FY22, with dividend amount standing at Rs 3,289 crore as per AceEquity. Its dividend yield stood at 1.01 per cent.
Infosys' Rs 31 per share (yield 1.63 per cent), totalling Rs 6,309 crore, as per AceEquity. HCL Tech paid a total of Rs 42 per share dividend (yield at 3.61 per cent) for the year, which amounted to Rs 11,391 crore.
In FY21, TCS announced a total dividend of Rs 38 per share; it declared a total dividend of Rs 73 per share in FY20, Rs 30 per share in FY19, Rs 50 per share in FY18, Rs 47 per share in FY17 and Rs 43.50 per share in FY16.
Meanwhile, peer HCL Technologies last week announced an interim dividend of Rs 10 per share for FY23, which the IT major said was its 80th (20 years) straight payout in a row. It had announced interim dividends of Rs 10 each in the previous two quarters. Wipro, on the other hand, announced an interim dividend of Re 1 per share. Infosys did not announce any dividend.
For the December quarter, TCS reported a 11 per cent year-on-year (YoY) rise in profit at Rs 10,846 crore compared with Rs 9,769 crore in the same quarter last year.
Revenues for the quarter climbed 19.10 per cent YoY to Rs 58,229 crore from Rs 48,885 crore in the corresponding quarter last year. On constant currency terms, revenues were up 13.5 per cent YoY.
Given the large payout, investors may unlikely to see any share buy back in the near future, said Nirmal Bang Institutional Equities.
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