This Adani Stock To Trade Ex-Dividend On July 28 For 250% Dividend Payout

A host of Adani Group-backed firms have delivered hefty dividend payout for its shareholders, and this trend will continue with Adani Ports being the latest one to trade ex-dividend on July 28. The Group's ports operator will pay a 250% dividend in August. This dividend payment is for the financial year ending March 31, 2023.

In its regulatory filing, Adani Ports said, "the company has fixed Friday, July 28, 2023 as Record Date for the purpose of determining entitlement of the shareholders of the Company to receive Dividend of Rs. 5/- (@ 250%) per equity share having face value of Rs 2/- each fully paid-up for the financial year 2022-23."

Simply put, those investors who hold Adani Ports shares in their demat accounts as of July 28, will be eligible for the dividend benefits.

Adani said that the dividend, if declared by the shareholders at the ensuing AGM, shall be paid on or after August 10, 2023, subject to deduction of tax at source as applicable.

The Rs 5 dividend per share will lead to a cash outflow of Rs 1,080 crore for Adani Ports. It is also 20% of the company's 20% of reported PAT in FY23.

In its annual report for FY23, Adani Ports said, "APSEZ is committed to reward shareholders through its 'Dividend Distribution and Shareholder Return Policy.' The Company aims to provide a stable dividend or capital return of 20 to 25% of its profit after tax. This commitment ensures that shareholders receive a consistent and significant a portion of the Company's earnings."

It added, "The combination of stable dividend distribution and funds allocation for growth demonstrates APSEZ's commitment to balancing shareholder rewards with strategic investments. By providing a reliable and competitive investment return, APSEZ aims to attract and retain shareholders while catalysing growth and profitability."

On BSE, Adani Ports share price ended at Rs 728.85 apiece down by Rs 3.80 or 0.52% on Friday. However, in the trading week that ended on July 21st, Adani Ports shares dipped by at least 1.4% on BSE.

At the current market price, Adani Ports has a dividend yield of 0.69%.

In fiscal year FY22 and FY21, Adani Ports also paid a total dividend of 250% each.