Wipro Vs Infosys Vs TCS: Bonus, Dividends, Splits; Which Magnificent IT Stock To Buy Amid US Elections?

US Election: The 2024 US Presidential Election is expected to have critical implications for India. Among key sectors to be impacted by the US election outcomes, is also IT industry as they will eye development in visa and visa approvals. Also, the tech sector will eye any norms related to education and GCC exports. In whose regime will the IT sector flourish, Kamala Harris and Donald Trump?

In its India Strategy report, Prabhudas Lilladher said, "The upcoming US presidential election could have critical implications for India against the backdrop of escalating geopolitical tensions, change in leadership in Bangladesh, and fragile situation in South East Asia. With India navigating tensions in South Asia and managing strategic shifts in the Indo-Pacific, the US stance becomes crucial to preserve political stability in South Asia."

If Kamala is elected, then the brokerage believes that she is most likely to maintain the Biden administration's multilateral, alliance-driven approach.

But if Trump wins, his policies could see a resurgence of aggressive trade tactics, including potential tariffs and stricter immigration policies. However, the return of Donald Trump as president of the USA might put some cold water on rising tensions and wars in Russia - Ukraine and the Middle East.

As per Prabhudas Lilladher, here's how Harris or Trump's win will impact the IT sector, and which top giant stocks to buy.

Harris Win: Favors expanding skilled worker visas, like H-1B - H-1B visa approval rates under Biden peaked at 98% in FY21, the highest in over a decade. Also, Positive for Indian IT service and GCC exports.

Trump Win: Plans to tighten immigration rules reduce H-1B visas. Under Trump, the number of approvals fell in 2017/18 but recovered in 2019/20. Stricter education based on norms likely, might affect unskilled workers, but might not affect IT services and GCC exports.

1. Wipro Ltd:

After market hours of November 4, Wipro's share price stood at Rs 540.40 apiece, with a market cap of Rs 2,82,716.81 crore. Return on equity is around Rs 15.13%.

Wipro has not carried any stock splits. However the company has a track record of delivering 34 dividends since May 2000, as per Trendlyne data. In the past 12 months, the dividend payout was to the tune of Rs 1 per share.

At the latest, the tech player has announced the issuance of bonus equity shares in the proportion of 1:1. This means that the company will allot 1 (One) bonus equity share of Rs 2/- each for every 1 (One) fully paid-up equity share held and a bonus issue.

Wipro has a strong track record of bonus issues.

Prabhudas Lilladher has recommended ACCUMULATE on Wipro shares for a target price of Rs 580 apiece.

2. Tata Consultancy Services (TCS):

TCS' share price is at Rs 3962.40 apiece, with a market cap of Rs 14,33,631.00 crore. This Tata Group stock's return on equity is strong at 56.42%.

Just like Wipro, TCS has not split for once. But the Tata flagship company has distributed a massive 86 dividends since October 2004. In the last 12 months, the dividend payout was to the tune of Rs 75 per share. It has a dividend yield of 1.89%.

In terms of bonus issue, the company has allotted 1:1 bonus issue each in July 2006, June 2009 and June 2018 respectively.

Prabhudas has recommended BUY for target price of Rs 4,227 apiece.

3. Infosys Ltd:

Ahead of US election, the stock price stood at Rs 1764.90 apiece, with market cap of Rs 1764.90 crore. Return on equity is about 33.37%.

Infosys also holds massive track record of bonus issues. The company paid up to 1:1 bonus issue each in July 2006, December 2014, and June 2018. The first bonus issue was of 3:1 in July 2004. This tech giant has also not carried any stock splits.

Meanwhile, Infosys has distributed up to 52 dividends since October 2000. In the past 12 months, the company paid up to Rs 49 dividend per share. Currently, it has a yield of 2.78%.

The brokerage has recommended BUY for target price of Rs 2,180 on Infosys.