Tata Consultancy Services' (TCS) jumped about 2 per cent during the trading session on Monday after the stock traded ex-dividend, a day ahead of its record date for the interim and special dividend announced during Q3 results.
Tata Consultancy Services had announced an interim dividend of Rs 8 per share, along with a special dividend of Rs 67 apiece, taking the total dividend payout to Rs 75 per share. The record date for both the dividends was announced as January 17, 2023 and the dividends will be paid to eligible shareholders on February 3, 2023.
TCS' shares rallied 2 per cent on Monday to Rs 3352.40, before paring up gains partially. The stock of Tata Consultancy Services had settled at Rs 3299.55 on Friday.
TCS has a strong track record of distributing dividends to its shareholders. The IT major has declared 78 dividends since October 28, 2004. In the past 12 months, TCS has declared an equity dividend amounting to Rs 45.00 per share. At the current share price, this results in a dividend yield of 1.33%, as per data by Trendlyne.
The IT company has a strong track record of distributing dividends to its shareholders, declaring 78 dividends since October 28, 2004. In the past 12 months, TCS has declared an equity dividend amounting to Rs 45 per share.
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 arch rival Infosys' 2.06 per cent. Among the IT bluechips, Tech Mahindra had a best dividend yield at 4.49 per cent, whereas HCL Technologies' dividend yield stood 3.90 per cent . Wipro's dividend yield was 1.52 per cent.
TCS announced a total dividend of Rs 43 per share, with yield 1.15 per cent, for the year ended on March 31, 2022, amounting to Rs 7,686 crore. Wipro announced Rs 6 per share in dividend for financial year 2022, with dividend amount standing at Rs 3,289 crore as per AceEquity. Its then dividend yield stood at 1.01 per cent.
Julius Bar has an 'hold' rating on Tata Consultancy Services with a target price of Rs 3,650. It remains constructive on TCS’s longer term growth prospects, given its ability to structure large multi-service and complex deals, strong execution capabilities, healthy client relationships, deal wins across verticals, and strong FCF generation.
IndSec remains positive on TCS but has not rated the stock citing likely improvement in margins amid investment in talent, research, innovation, branding leading to better realization rate, improving utilization rate and continued revenue growth.
BNP Paribas has a buy rating on the stock with a target price of Rs 3,900, whereas IDBI Capital has suggested to hold it with a target price of Rs 3,615. Centrum Broking has pegged the share at Rs 3,607, with an 'add' rating.
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