TCS Dividend 2025: Tata Group-backed flagship company, Tata Consultancy Services (TCS) has declared its final dividend for financial year 2024-25. To end the fiscal, TCS will reward a whopping Rs 30 dividend per share, despite its Q4 profit declining marginally. The dividend announcement was made on April 10, during the quarter results meeting.
TCS Dividend:
In its regulatory filing on April 10, TCS said, "The Directors have recommended a Final Dividend of INR 30 per Equity Share of INR 1 each of the Company which shall be paid/dispatched on the fifth day from the conclusion of the 30th Annual General Meeting, subject to the approval of the shareholders of the Company."
The record date and payment date for the dividend are yet to be announced.
Before this, TCS rewarded investors with a whopping Rs 76 dividend per share in January 2025. The total payout included a Rs 66 special dividend and a Rs 10 interim dividend. For FY25, TCS also rewarded interim dividends of Rs 10 each in July and October of last year.
In the past 12 months, TCS paid up to Rs 124 dividends per share. However, as per Trendlyne data, the company has distributed about 88 dividends since October 2004. Also, TCS' current dividend yield is at 3.82%, making it among the top dividend yield stocks in the tech sector.
TCS Q4 Results:
In Q4FY25, TCS posted a mild decline in its consolidated net profit to Rs 12,224 crore during Q4 of FY25, missing street estimates.
Consolidated net profit to Rs 12,224 crore in Q4FY25, down by 1.7% compared to net profit of Rs 12,434 crore in Q4FY24. Also, the PAT slipped by 1.26% from a net profit of Rs 12,380 crore which was reported in the preceding quarter. Meanwhile, consolidated revenue from operations came in at Rs 64,479 crore, registering a growth of 5.76% from revenue of Rs 61,237 crore in Q4FY24. Revenue is higher by 0.79% sequentially.
What Are The Benefits Of Stock Dividends:
Religare Broking on its website, highlighted these advantages of stock dividend:
- Dividend stocks offer several advantages for both companies and shareholders. One major benefit is that stock dividends do not require a company to allocate cash for distribution. Instead of depleting cash reserves, companies can issue additional shares of stock to reward shareholders. This allows the company to preserve liquidity for other important purposes, such as investing in growth opportunities or managing financial obligations.
- For shareholders, receiving stock dividends can have tax advantages. In some jurisdictions, stock dividends may be taxed lower than cash dividends, resulting in potential tax savings for investors. This can be especially appealing for long-term investors looking to optimise their tax positions.
- Furthermore, it contributes to the perception of corporate health and confidence. When a company declares a stock dividend, it indicates it is in a strong financial position and can reward its shareholders. This can enhance the overall image and reputation of the company, attracting potential investors and reinforcing existing shareholders' confidence in their investment.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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