50-2700% Dividends Payout: TCS Vs HCL Vs Wipro: Know Their Record Dates And How To Be Eligible!

The top four IT behemoths have delivered their Q3 results for FY24. Except for Infosys, all other three namely Tata Consultancy Services (TCS), HCL Tech, and Wipro have declared rewards for their investors in the form of dividends. The three tech players will pay dividends in the range of 50% to as high as 2700% most likely in February. However, to grab these hefty dividend benefits, investors first need to know important dates which is key for their eligibility.

TCS and HCL Tech shares will trade ex-dividend in the trading week of January 15th to 20th, while Wipro will turn ex-dividend later on.

TCS Dividend:

India's largest IT firm in terms of market share, TCS announced a third interim dividend of Rs 9 per share for investors for FY24 but also declared a special dividend of Rs 18 per share. In percentage terms, these dividend payouts were 900% and 1800% respectively.

In total, TCS is paying a hefty 2700% dividend valuing Rs 27 per share.

The third and special dividend will be paid on Monday, February 5, 2024, to eligible equity shareholders of the company. These eligible shareholders are those whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as of Friday, January 19, 2024, which is the Record Date fixed for the purpose.

Also, TCS share will turn ex-dividend on January 19 as well.

So far in FY24, the company has already paid first and second interim dividends of Rs 9 each (1800% each) to its shareholders.

Currently, TCS has a dividend yield of 2.96%. Last week, on Friday, TCS' share price ended at Rs 3,881.70 apiece, up by 3.89% on BSE with a market cap of Rs 14,20,333.97 crore.

During the third quarter of FY24, TCS registered a consolidated net profit of Rs 11,058 crore, up by 1.95% year-on-year but down by 2.5% quarter-on-quarter. Consolidated revenue was at Rs 60,583 crore, however, rose by 4.04% YoY and 1.49% QoQ. In constant currency, TCS revenue growth was at 4% YoY. While EBIT margin expanded by 50 bps to 25% in the quarter.

TCS performed better than expected in Q3 amidst market challenges.

2. HCL Technologies Dividend:

HCL Tech is among the leading high dividend yield stocks in the IT sector followed by TCS. The Shiv Nadar-backed company declared a fourth interim dividend of 600% amounting to Rs 12 per share for FY24. This will also be HCL's 84th consecutive quarterly dividend payout.

For determining eligible shareholders, HCL Tech fixed January 20, 2024, as the record date for the aforesaid interim dividend. On this day, HCL will also turn ex-dividend. The shareholders who will hold HCL Tech shares in their demat account by the end of January 20th will be eligible for the benefit.

The payment of the fourth interim dividend is January 31, 2024.

In FY24, so far, HCL Tech already paid three interim dividends. The first interim dividend was 900% amounting to Rs 18 per share, followed by a second interim dividend of 500% aggregating to Rs 10 per share, and a third interim dividend of 600% valuing to Rs 12 per share.

HCL Tech posted a stronger Q3 compared to its peers. In Q3FY24, HCL garnered a consolidated net profit of Rs 4,350 crore, registering a growth of 13.51% QoQ and also up by 6.20% YoY. HCL's rupee revenue was at Rs 28,446 crore on a consolidated basis, rising by 6.65% QoQ and 6.54% YoY. In dollar terms, revenue stood at $3,415 million, up by 5.9% QoQ and 5.3% YoY. Meanwhile, constant currency revenue growth was at 6% QoQ and 4.3% YoY.

Currently, HCL Tech has a dividend yield of 3.12%. Last week, on Friday, HCL Tech's shares touched a new 52-week high of Rs 1,554.75 apiece before ending at Rs 1,543 apiece, up by 3.85% on BSE with a market cap of Rs 4,18,718.52 crore.

Wipro Dividend:

Unlike TCS and HCL Tech, Wipro's Q3 earnings were bleak however still the Azim Premji-backed company has announced dividends for equity shares and American depositary shareholders.

Wipro declared an interim dividend of Rs 1 per equity share/ADS. In percentage terms, the dividend payout is 50%.

Also, Wipro further fixed a record date of January 24, for determining its eligible shareholders for the benefit. The payment of the interim dividend will be made on or before February 10, 2024.

In simple words, ADS shares are securities of non-US companies and held by US depositary banks outside of the US. ADS allow US investors to invest in non-US companies and give non-US companies easier access to the US capital markets.

In Q3FY24, Wipro registered a consolidated net profit, attributable to owners, to Rs 2,694.2 crore, down by 11.75% YoY but up by 1.81% QoQ. Meanwhile, rupee revenue came in at Rs 22,205.1 crore in Q3FY24, registering a drop of 4.41% YoY and 1.38% QoQ. In constant currency, the IT Services segment revenue decreased by 1.7% QoQ. Meanwhile, in dollar terms, this segment's revenue was at $2,656.1 million, a decrease of 2.1% QoQ.

Last week, on Friday, Wipro shares ended at Rs 465.45 apiece, up by 3.88% on BSE with a market cap of Rs 2,43,167.25 crore. Currently, Wipro has a dividend yield of 0.21%, which is the lowest compared to HCL Tech and TCS.

How do be eligible for these three companies' dividends?

In general terms, dividends reflect a company's potential and ability to share a portion of its net profits from the respective financial year with its shareholders. They are paid to those eligible shareholders who hold the dividend-paying stock at the specified date. But notably, dividends vary into three categories, interim, special and final.

Hence, to be eligible, you need to ensure that you are holding TCS, HCL Tech or Wipro shares by the end of their record dates.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.