Three High-Quality Stocks That Announced Dividend This Week, Should You Buy?

This week three major IT Sector stocks have announced the Dividends. These three high-quality stocks are Tata Consultancy Services, Wipro, and HCL technologies. The stocks will soon pay dividends to their shareholders as per regulatory filing by the companies.

Post Result announcement, top brokerages have placed a "buy" on two of these stocks namely Tata Consultancy Services and HCL technologies.

1. Tata Consultancy Services Ltd. (TCS)

Tata Consultancy Services, a large-cap Tata group's IT Sector company, having a market capitalization of Rs 12,34,765 crore declared dividend on January 09, 2023. 

The company has declared an interim dividend of Rs 8 and a special dividend of Rs 67 per Equity Share of 1 each. The record date for the dividend payment has been set as Tuesday, January 17, 2023, according to the Regulatory filing by TCS. 

The stock last traded at Rs 3,374.55 apiece on NSE. It gave the highest return in 5 years, around 143.09%.

Geojit has placed a buy on TCS

According to the brokerage, Strong order book, large new deal wins in the international markets, continual growth in the cloud businesses, enhanced productivity and cost optimisation are expected to support the company's sustainable earnings in the future. "We, therefore, reiterate our BUY rating on the stock with a rolled forward target price of Rs. 3,753 based on 25x FY25E adjusted EPS," the brokerage has said.

2. Wipro Ltd.

Wipro, a leading IT sector company in India has announced an interim dividend of Re 1 per share of par value of Rs 2 each. The company also fixed January 25, 2023, as the record date for the said dividend. The payment of the Interim Dividend will be made on or before February 10, 2023, according to the regulatory filing of the company. 

The shares of the Wipro on NSE last traded at Rs 393.90 apiece. The stock has given 54.59% in 3 years and 64.74% in the last 5 years, respectively. Wipro is a large-cap stock with a market capitalisation of Rs 2,16,075 crore. 

3. HCL Technologies Ltd.

HCL Technologies, a large-cap IT Software company with a market capitalisation of Rs 2,92,478 crore on January 12, 2023, announced the interim dividend. 

The company has declared an Interim Dividend of Rs.10 per equity share of Rs.2 each for the Financial Year 2022-23. The company also fixed the record date as January 20, 2023, for the interim dividend. 

The Payment date of the said interim dividend shall be February 1, 2023, according to the regulatory filling by the company.

The stock of the company last traded at Rs 1,077.80/share on NSE. The stock in the last 3 years has given 83.77% return, and in 5 years gave 132.81% return, respectively. However, it has fallen 19.22% in the last 1-year. 

Motilal Oswal has placed a Buy on HCL Technologies

According to the brokerage, Given its capabilities in the IMS and Digital space and strategic partnerships and investments in Cloud, we expect HCLT to emerge stronger on the back of an expected increase in enterprise demand for these services. "The stock is trading at ~15x FY24E EPS, which offers a margin of safety. Our TP is based on 20x FY24E EPS. We reiterate our Buy rating," the brokerage has said. 

Disclaimer

The stocks have been sourced from NSE. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.