Bumper Dividend Alert: THIS Maharatna PSU To Pay 40% Dividend; Should You Buy Before Record Date?

Dividend Alert: Maharatna Public Sector Undertaking (PSU), Power Finance Corporation (PFC), shares will remain in focus next week ahead of the company's dividend record date. PFC's board of directors is set to pay 40% interim dividend for FY26.

PFC shares closed 1.29% lower at Rs 410.45 per share on BSE with a market capitalisation of Rs 1,35,452.68 crore on Thursday. The stock had dipped to a 52-week low of Rs 408.10 per share and an intraday high of Rs 421 per share on BSE.

PFC Dividend

PFC's Board of Directors, on 5 February, declared the third interim dividend of Rs 4 per share, which is 40% of the face value of Rs 10 per share. "Declaration of 3rd interim dividend of Rs 4.00/- (Rupees Four only) per equity share (i.e. @ 40 %) (Subject to deduction of TDS) on the face value of the paid-up equity shares of 10/- each for the FY 2025-26," noted the company's BSE filing.

PFC Dividend Record Date

The company's board had also fixed 20 February, Friday, as the dividend record date. Which means that all the investors owning the company shares on or before the dividend record date will be eligible for the dividend payout.

"It is to inform that 20.02.2026 (Friday) shall be reckoned as the 'Record Date' for the purpose of ascertaining the eligibility of shareholders for payment of 3rd Interim Dividend for the FY 2025-26."

PFC Share Price Recommendation

Brokerage Motilal Oswal, in its report released on 11 February, gave a 'Buy' recommendation for the PFC shares. The brokerage has maintained a buy rating for the PSU stock, indicating a 21% upside in its valuation.

"We estimate a disbursement/advances/PAT CAGR of 11%/13%/8% over FY26-FY28, an RoA/RoE of 3%/18%, and a dividend yield of ~4.9% in FY28. We reiterate our BUY rating with an SoTP (Dec'27E)-based TP of INR500 (premised on a 1x target multiple for the PFC standalone business and INR144/share for PFC's stake in REC after a hold-co discount of 20%)," noted the brokerage in its report.

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