Rs 12/Share Dividend: IT Stock Mastek To Trade Ex-Dividend On September 18; Stock Rises By Rs 800 YTD

IT company Mastek will be in focus on Monday as it will trade ex-dividend for the final dividend of 240% for the financial year 2022-23. Mastek is among high dividend paying stocks and holds a consistent track record of rewarding its shareholders with this benefit. In general terms, dividends are distributed by listed companies from their net profits in the respective financial years.

As per the filing, Mastek has recommended final dividend of 240%, i.e., Rs 12.00 per equity share (on the face value of Rs 5 per equity share) for the Financial Year ended March 31, 2023, which will be paid upon obtaining the Members' approval at the ensuing Annual General Meeting.

The company's AGM is scheduled on September 21. Accordingly, the Register of Members and the Share Transfer Books of the Company will be closed from Wednesday, September 20, 2023 to Thursday, September 21, 2023 for the purpose of 41st AGM of the Company and to determine the Members eligible to receive the final dividend.

Hence, payments of Rs 12 dividend per share will be made to those shareholders who are holding Mastek shares in dematerialised or physical form, at the close of business hours on Tuesday, September 19, 2023.

Since the market will be closed on September 19 due to Ganesh Chaturthi, the company will take into account eligible shareholders who have Mastek shares in their Demat accounts or physical form by the end of September 18, 2023.

Typically, the record date is proposed by the listed company's board of directors to determine the name of the eligible shareholders for dividends. As per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date. Meanwhile, the ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

Notably, for FY23, the company has already paid a dividend of Rs 7 per share to its shareholders.

The total dividend for FY23, including the proposed Final Dividend, amounts to Rs 19 per equity share (on the face value of Rs 5.00 per equity share) or 380% (previous year 19.00 per share or 380%).

As per Trendlyne data, Mastek has declared 38 dividends since August 2000.

On BSE, Mastek shares closed at Rs 2387.20 apiece, down by 0.90% on Friday last week. Its market cap is around Rs 7,306.16 crore.

At the current price level, Mastek has a dividend yield of 0.8%. Year-to-date, Mastek shares have zoomed by nearly Rs 694.60 or 41.04%. But in the past six months, the stock has skyrocketed by Rs 763 or 47% on BSE.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor 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.