Top Dividend Paying IT Stock; At 4.33% Yield, Tech Mahindra To Declare FY24 Interim Dividend On October 25

IT giant, Tech Mahindra will be in focus on October 25 as the company will declare an interim dividend for shareholders in the current fiscal 2023-24. Tech Mahindra is among the top dividend-paying stocks in the IT sector and has consistently announced these rewards from its net profits of the respective financial year. That being said, Tech Mahindra will also announce its Q2 results for FY24 on Wednesday.

The company has already fixed a record date for its upcoming dividend.

In its regulatory filing, Tech Mahindra said, "We would like to inform you that the Board of Directors will also consider a proposal for payment of interim dividend for the financial year 2023-24, at its meeting scheduled on 24th October & 25th October 2023."

For the same, Tech Mahindra said it has fixed November 2, 2023, as the record date for determining the members entitled to receive the Interim dividend, if approved by the Board.

In the previous fiscal (FY23), the company paid a total dividend of 1000% amounting to Rs 50 per share.

On the current market price, Tech Mahindra's dividend yield is huge at 4.33%, making it one of the top large-cap stocks with high dividend yields.

On Monday, Tech Mahindra shares were at Rs 1155.15 apiece, down by 1.32% on BSE. Its market cap is nearly Rs 1.13 lakh crore. The stock is up by 17.5% from its 52-week low of Rs 982.95 apiece.

On October 25th, Tech Mahindra will also declare its consolidated and standalone financial results on October 25 as well for the quarter ending September 30, 2023.

Since March 2007, Tech Mahindra has declared 26 dividends for its shareholders, as per the Trendlyne data. In the last twelve months, a total of Rs 50 dividends per share were declared. Not just that, Tech Mahindra has also carried bonus issues and stock splits but those were years ago in 2015.

Further, Trendlyne data revealed that Tech Mahindra shares Relative Strength Index (RSI) is in the mid-range of 31.9, while the Money Flow Index (MFI) is at 27.9 hinting at oversold. While its price-to-book value is above the industry median at 3.97, however, PE TTM is below the industry median at 25.7. The stock currently is indicated on high volatility as its 1-year beta is at 1.06.

In the last six months, as per Trendlyne, 6 analysts have assigned a downgrade to Tech Mahindra, while only 2 analysts have given an upgrade. The average brokerage target is Rs 1,167.27 apiece, an upside of nearly 1%.

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