Dividend stock: Vedanta may reward shareholders again — board to meet June 18 for FY26 payout

Vedanta Ltd announced on June 13 that its board will meet on June 18 to consider the first interim dividend for the financial year 2025-26. This move comes as part of the company's ongoing strategy to provide returns to its shareholders, with the record date for determining shareholder entitlement set for Tuesday, June 24, 2025. This decision is in line with Vedanta's commitment to maintaining a strong dividend policy, reflecting its robust financial health and shareholder-centric approach.

The announcement follows Vedanta's recent financial performances, where the company has declared several dividends over the previous year. In December, the board approved a fourth interim dividend of Rs 8.5 per share for FY25, amounting to approximately Rs 3,324 crore. Earlier dividends in FY25 included Rs 20 per share in September and Rs 11 per share in May. These consistent payouts underscore Vedanta's dedication to sharing profits with its investors.

Anil Aggarwal-led Vedanta is recognised as one of the high dividend-paying stocks in the market with a dividend yield of 7.09%. According to Trendlyne data, the company's dividends amounted to ₹32.50 per share over the past 12 months, underlining its commitment to rewarding shareholders. The company's strategy to maintain a high dividend yield is indicative of its strong cash flow and operational efficiency.

In terms of financial performance, Vedanta posted a significant 154.4% increase in consolidated net profit, reaching Rs 3,483 crore for the quarter ended March 31, 2025. This growth was attributed to lower operational costs and increased production volumes. The company's income also rose to Rs 41,216 crore in the same quarter, up from Rs 36,093 crore the previous year. Such impressive financial results are a testament to Vedanta's effective management and strategic initiatives.

In addition to dividend considerations, Vedanta recently announced plans to raise funds through non-convertible debentures, aggregating up to ₹5,000 crore. The board approved the issuance of these unsecured, rated, listed, redeemable debentures on a private placement basis, aimed at strengthening the company's financial footing. This move is expected to provide additional capital for expansion and operational improvements.

The financial markets responded with Vedanta shares closing 0.47% lower at Rs 458.35 on the BSE on June 13. This reflects the market's cautious anticipation of the upcoming board meeting and the potential financial implications of the dividend declaration. Investors are keenly observing how these developments will influence Vedanta's market position and future growth prospects.