From Rs 9 To 18 Dividends Per Share: TCS Vs Infosys Vs HCL Tech; When And How To Get These Dividend Benefits

India's top 3 IT companies have declared a huge amount of dividends for their shareholders. These are tech biggies like Tata Consultancy Services (TCS), Infosys, and HCL Tech. The three companies have announced dividends in the range of Rs 9 per share to as high as Rs 18 per share. Their stock prices will turn ex-dividend in the next two weeks.

These three tech giants hold a strong track record of paying dividends significantly from their net profits of the respective financial years. TCS is also among the top dividend yield stocks in the large-cap basket, while Infosys and HCL Tech also have high dividend yields.

On October 13th, HCL Tech shares rose by 2.6% to Rs 1,255.30 apiece and emerged as top gainer on Sensex. While TCS shares ended at Rs 3,570.30 apiece, up 0.8%. But this was not the case with Infosys who ended at Rs 1,431.80 apiece, lower by 2.24% and also among top bears on exchanges.

Here's how and when to get these dividend benefits in the three IT behemoths:

Tata Consultancy Services (TCS):

The Tata Group-backed flagship company, TCS has announced a second interim dividend of Rs 9 per share having a face value of Re 1 for each of the company. For the second interim dividend, TCS has already fixed October 19, 2023, as the record date to determine eligible shareholders.

TCS will also trade ex-dividend on October 19. The company plans to pay the second interim dividend on Tuesday, November 7, 2023.

Earlier, for FY24, TCS paid the first interim dividend to the tune of 900% amounting to Rs 9 per share. TCS is among the dividend king stocks in the IT sector and holds a strong track record of paying dividends to its investors from the profitability of the respective financial years. In FY23, TCS paid a mind-blowing 11,500% totaling Rs 115 per share.

During the September quarter of FY24, TCS posted a consolidated net profit of Rs 11,342 crore, which is attributable to the shareholders of the company. The Q2FY24 PAT witnessed single-digit growths of 2.4% QoQ and 8.7% YoY. Further, in the quarter, consolidated revenue from operations stood at Rs 59,692 crore, rising by a fractional 0.5% from Rs 59,381 crore in Q1FY24, but witnessed a growth of 7.9% from Rs 55,309 crore in Q2 of FY23.

Currently, TCS has a dividend yield of 3.22%.

Among its two rivals, TCS' latest dividend payout however is the lowest.

Infosys:

Among its two peers, Infosys has recommended the highest dividend payout of Rs 18 per share for FY24. Infosys has fixed October 25 as the record date to determine eligible shareholders for the dividend payout. Also, this will be the ex-dividend date for Infosys shares.

On the current price level, Infosy's dividend yield is at 2.4%. In FY23, the company paid a dividend of 680% amounting to Rs 34 per share to investors.

In the second quarter of FY24, Infosys posted a consolidated net profit of Rs 6,212 crore which is attributable to the owners of the company, registering a growth of 4.5% QoQ and 3.2% YoY. However, Infosys sees its top-line front under pressure ahead as it trims the upper-end of constant currency revenue growth guidance.

Further, in the quarter, in the quarter, in constant currency, Infosys delivered $4,718 million in Q2 revenues with year-on-year growth of 2.5% and sequential growth of 2.3% in constant currency. Large deal TCV for the quarter was $7.7 billion, with a net new of 48%.

HCL Technologies:

HCL Tech's dividend is broadly in the middle of both TCS and Infosys. The Shiv Nadar-backed company declared a third interim dividend of Rs 12 per share for the current financial year 2022-23. It has already set October 20th as the record date to determine eligible shareholders for the third interim dividend.

In its regulatory filing, HCL Tech said, the Record Date for determining the entitlement of the shareholders for the payment of the aforesaid interim dividend shall be October 20, 2023, subject to the approval of the interim dividend by the Board of Directors.

The payment date of the said interim dividend shall be October 31, 2023.

For FY24, the IT player has already paid a first and second interim dividend of Rs 18 per share (900%) and Rs 10 per share (500%). During the financial year FY23, the company paid a total dividend of 2400% aggregating to Rs 48 per share.

In the September 2023 quarter, HCL Tech posted net income of Rs 3,832 crore, up by 8.4% QoQ and 9.8% YoY, while EBIT stood at Rs 4,934 crore, rising by 10.6% sequentially and 11.5% YoY. Revenue in rupee terms gained by 1.4% QoQ and 8% YoY, while constant currency revenue growth stood at 1% QoQ and 3.4% YoY. HCL Tech's dollar revenue stood at $3,225 million, up 0.8% QoQ and 4.6% YoY.