ITC Dividend Alert: Last Chance To Become Eligible For 1,450% Payout; Check Record Date, Eligibility

Investors in ITC Limited are closely tracking Tuesday's trading session ahead of a crucial dividend record date on May 27, as the FMCG major prepares to reward shareholders with one of its largest annual payouts in recent years.

ITC Dividend Alert: Last Chance To Become Eligible For 1,450% Payout; check Record Date

The company has proposed a final dividend of Rs 8 per equity share for FY26, taking the total dividend payout for the financial year to Rs 14.50 per share after including the interim dividend announced earlier this year.

The proposed final dividend, declared alongside the company's quarterly earnings earlier this month, will be placed for shareholder approval at the company's Annual General Meeting scheduled for July 23. Subject to approval, the payout is expected to be credited between July 24 and July 29 to eligible shareholders whose names appear in the company's records on the May 27 record date.

Buying ITC Shares Before May 27? Here's How Investors Can Qualify For The Dividend

For investors seeking eligibility, timing has become important because of the T+1 settlement mechanism in Indian markets. Shares purchased on May 26 are expected to be credited to demat accounts by May 27, making those investors eligible for the dividend. However, purchases made on or after the record date are unlikely to qualify, as settlement would occur after the cut-off.

The latest payout reinforces ITC's long-standing reputation as one of India's most consistent dividend-paying companies. The Rs 8 final dividend is the highest proposed final payout since 2020, when the company had announced a dividend of Rs 10.15 per share. Combined with the interim dividend of Rs 6.50 per share declared in January, the total shareholder payout for FY26 stands at Rs 14.50 per share.

Over the years, ITC has maintained a strong cash distribution track record. Data from market platform Trendlyne shows the company has declared 33 dividends since 2001, underlining its preference for rewarding long-term shareholders through regular payouts. At current market levels, the stock offers a dividend yield of nearly 4.74 percent, keeping it attractive for income-focused investors.

ITC had distributed Rs 13.75 per share in FY24 and Rs 14.35 per share in FY25 before raising the total payout further in FY26.

ITC Bonus Share Issue

Apart from dividends, the company has historically rewarded investors through bonus share issuances and corporate restructuring. ITC issued bonus shares in a 1:2 ratio in 2016 and earlier completed a 1:1 bonus issue in 2010. More recently, the conglomerate undertook the demerger of its hotel business, leading to the separate listing of ITC Hotels on stock exchanges after adjustments in the parent company's share price.

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