This Tata Group Stock, Paying 800% Interim Dividend, To Turn Ex-Dividend Tomorrow

Tata Consultancy Services (TCS) recently announced an interim dividend of 800% or Rs 8 per equity share along with its Q1 results. It is going to turn ex-dividend tomorrow and the record date is July 16, 2022. TCS is a leading IT Services, consulting, and business solutions organization and a part of Tata Group. Check the details below:

1. TCS To Pay 800% Interim Dividend

The leading IT service company is scheduled to pay an interim dividend of Rs 8 per equity share to its shareholders. In its BSE filing the company's board of directors said, "We would like to inform you that at the Board Meeting held today, the Directors have declared an interim dividend of ~8 per Equity Share of ~1 each of the Company." The interim dividend shall be paid on Wednesday, August 3, 2022, to the equity shareholders of the Company, 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 on Saturday, July 16, 2022, which is the Record Date fixed for the purpose.

The record date is July 16, 2022.

2. TCS Results For Q1

It declared an 5% surge in its net profit at Rs 9,478 crore for the first quarter of the current fiscal as compared to Rs 9008 crore reported in the same quarter last year. The profit has dipped by 4.5%. Meanwhile, its revenue from operations for Q1FY 2023 reported at Rs 52,758 crore, rose 16% from Rs 45,411 crore YoY. Operating margin for quarter recorded at 23.1% down from 25.5% announced a year ago as a result of impact of salary rise, higher cost of managing the talent churn etc.

3. TCS Dividend History

It has announced an equity dividend of 4300% or Rs 43 per share for the year ending March 2022. It has a dividend yield of 1.42% considering the current share price of Rs 3038 apiece. It has a solid dividend track record and the company announced dividend for the last 5 years.

4. TCS Stock Outlook

The current market price of TCS is Rs 3038.75 apiece. It has touched a 52-week high of Rs 4043 apiece and a 52-week low of Rs 3023 apiece. Its PE is 31.17 and sector PE is 28.39. The market capitalization is Rs 1,111,894 crore. The stock is currently trading at a discount of 25% from its highs. The stock has given multibagger returns in 5 years at 153%.

5. About TCS Limited

Tata Consultancy Services launched as a division of Tata Sons on April 1, 1968, as a management and technology consultancy that would create demand for downstream computer services. FC Kohli, a brilliant technocrat, was brought in from the Tata Electric Companies as a General Manager to run this start up. It has been recognized as a Global Top Employer by the Top Employers Institute - one of eight organizations worldwide to have achieved this status.