Dividend IT stocks: TCS vs HCL Tech — Which is better? Amount, record date, history

TCS vs HCL Tech: IT majors like HCL Technologies Ltd and Tata Consultancy Services Ltd (TCS) have announced their results for the quarter ended on March 31, 2026, along with the dividend. Despite TCS paying higher dividends in FY26, HCL Technologies continues to stand out for its consistent and reliable dividend yield.

While TCS has posted nearly double digit gains since beginning of this month, HCL Tech posted cuts in the similar fashion just in a day. Shares of HCL Tech tanked more than 11 per cent to Rs 1441.55 on Wednesday, while shares of TCS have gained more than 11 per cent to Rs 2,610.55 as of Tuesday's close in April 2026.

In terms of dividend, TCS  has an average dividend yield of 3-3.5 per cent for the last three financial years, while the three year average dividend yield for HCL Technologies is around 4 per cent. HCL Tech's dividend yield is more consistent near 4 per cent, while TCS often announces special dividends which pushes its yield higher.

For the financial year 2025-26, TCS has a dividend yield of 4.2 per cent, thanks to its special dividend of Rs 46 per share in January 2026. TCS has announced a dividend of Rs 110 in FY26. On the other hand, HCL Tech has announced a cumulative dividend of Rs 60 per share in FY26, resulting in a 4 per cent dividend yield for the investors but is considered as a preferred pick for passive income.
 

HCL Tech: Q4 results, dividend, dates & target prices

HCL Technologies reported a 4.2 per cent YoY rise in net profit at Rs 4,488 crore, while revenue increased 12.3 per cent YoY to Rs 33,981 crore for the quarter ended on March 31, 2026. The IT solutions player's ebit increased 3.3 per cent YoY to Rs 5,620 crore and margin dropped 150 bps to 16.5 per cent for the quarter.

HCL Technologies announced a dividend of Rs 24 per share for FY27. "The record date for the payment of the aforesaid interim dividend shall be April 25, 2026, and the payment date of the said interim dividend shall be May 5, 2026," said the company in an exchange filing.

Management remains optimistic about its AI framework category. It anticipates its own portfolio will face a 2-3 per cent deflationary impact going ahead, near-term  headwinds such as geopolitical escalations in Europe and a significant reduction in discretionary spending within the telecom vertical and digital business remain crucial parameters to watch, Axis Securities said and downgraded the stock to 'hold' with a target price of Rs 1,550.
 

TCS: Q4 results, dividend, dates & target prices

TCS reported a 12.2 per cent YoY jump in the net profit at Rs 13,718 crore, while revenue rose 9.6 per cent YoY to Rs 70,698 crore for the March 2026 quarter. India's largest software exporter reported a 14.5 per cent YoY rise in ebit to Rs 17,780 crore, while Ebit margin expanded 108 bps to 25.27 per cent for the quarter. TCS announced a final dividend of Rs 31 per share. However, the record date and payment date for the same are not announced yet.

TCS now rests almost entirely on one variable: revenue growth acceleration. Margins have largely done their job, the structural improvement of 25.3 per cent over four quarters is commendable, but meaningful expansion is unlikely because every basis point of margin upside will get reinvested back into AI talent, back into capability building, back into sales, said Sharekhan.

"However, TCS is still set to benefit when the demand cycle turns given its proven execution track record, industry-leading cash generation, and an AI bench being built at scale. We roll forward our valuation to FY28E with a Buy rating and slightly raise EPS estimates on a weak rupee. Accordingly, we increase our price target to Rs 2,870," it added.