TCS Dividend Update: Tata Consultancy Services (TCS), a leading name in the global IT sector, has been a consistent performer in revenue generation and value creation for shareholders. For FY25, the company has declared its second interim dividend of ₹10 per share, continuing its tradition of rewarding investors. The record date for this dividend is October 18, 2024, with payment scheduled for November 5, 2024. Stay informed for further updates on TCS dividends and stock performance.
Key Details of TCS Dividend 2024
The TCS board has approved a second interim dividend of ₹10 per share for FY25. This announcement follows an earlier dividend payout of ₹10 per share made in the first quarter of FY25. This move reflects the company’s ongoing commitment to sharing its financial success with its shareholders.
For shareholders, there are a few important dates to keep in mind:
Record Date: The record date is October 18, 2024. This is the cut-off date that determines which shareholders are eligible to receive the dividend. To be eligible, investors must own TCS shares by the end of trading on this day. If you sell shares before this date, you will not be entitled to the dividend payout.
Payment Date: The dividend will be paid on November 5, 2024. On this day, eligible shareholders will have the dividend credited directly to their bank accounts or brokerage accounts.
TCS Dividend Policy and Financial Strength
TCS has a long-standing dividend policy of distributing 80-100% of its free cash flow (FCF) to shareholders. This consistent policy provides reassurance to investors, as TCS is committed to maintaining regular dividend payouts, regardless of market fluctuations. TCS’s steady revenue growth and profitability allow it to maintain strong cash flows, ensuring regular returns to shareholders.
In FY24, TCS declared dividends totaling ₹73 per share, providing significant returns to its shareholders. The company’s total payout to shareholders during this period amounted to ₹46,223 crore, underscoring its dedication to distributing a large portion of its profits back to investors. This included several interim and final dividends, all contributing to its attractive dividend yield.
For long-term investors, this makes TCS an appealing option in terms of dividend income. The company’s financial stability, driven by its strong market position in the IT sector, means that shareholders can expect regular and healthy dividend payouts in the future.
Understanding the Importance of the Record Date
The record date for dividends is a crucial factor that determines which shareholders are eligible to receive the dividend payout. Investors who hold TCS shares as of the close of business on October 18, 2024, will be eligible to receive the ₹10 per share dividend. For investors who are looking to buy or sell shares around the dividend period, it is essential to keep the record date in mind. Any shares purchased after this date will not qualify for the dividend payout.
To be clear, if you are planning to sell your shares, doing so before October 18, 2024, means you forfeit your right to receive this dividend. Conversely, buying shares before this date makes you eligible for the payout. After the record date, the stock typically goes ex-dividend, which means it starts trading without the dividend value factored into its price.
Dividend Payment Process
TCS has set the payment date for November 5, 2024. On this day, shareholders who are eligible based on the record date will receive the ₹10 per share payout. If you are holding your shares through a brokerage account, the dividend will be credited directly to your account. If you are holding physical shares, the dividend will be sent via bank transfer or a physical dividend warrant, depending on the option you have chosen.
Why TCS is a Top Dividend Stock
TCS is widely regarded as one of the best dividend-paying stocks in India. Here’s why:
- Consistency: TCS has consistently paid dividends year after year. Its strong cash flow allows the company to maintain a high dividend payout ratio, ensuring shareholders receive regular returns on their investments.
- Financial Strength: TCS operates with a strong balance sheet, high profitability, and stable cash flows. The company’s leadership position in the IT sector, coupled with its vast global operations, makes it financially resilient, even in challenging economic conditions.
- Attractive Yield: With a regular payout ratio and substantial dividends, TCS offers an attractive dividend yield for investors seeking income-generating stocks. Its consistent policy of returning 80-100% of FCF makes it a reliable dividend-paying company.
- Growth Potential: Besides its strong dividend policy, TCS continues to grow its revenue and expand globally, providing opportunities for long-term capital appreciation. Investors benefit from both dividend income and the potential for stock price appreciation.