Tata Consultancy Services Ltd declared a special dividend of Rs 18 per share and an interim dividend of Rs 9 per share for the fiscal year 2024, while releasing its fiscal third quarter results on January 11.
Earlier, in the first and second quarters of FY24, the company had announced dividends of Rs 9 per share for each quarter. As of now, the total dividend declared for FY24 stands at Rs 45 per share.
In the current fiscal year, the software major is set to pay around Rs 16,456 crore in dividends, following a payout of Rs 33,306 crore in FY23, Rs 7,686 crore in FY22, and Rs 8,510 crore in FY21.
ALSO READ: TCS Q3 results: Net profit rises 2% to Rs 11,058 crore, revenue tops estimates
Analysts said regular dividends signal a company's strength and positive outlook on future earnings growth, making it more appealing to investors and contributing to an increase in the stock price.
Additionally, TCS has been consistently announcing buybacks, with the latest one being a Rs 17,000 crore buyback in FY23. Since 2017, the company has declared five buybacks, including the inaugural offer of Rs 16,000 crore in 2017, two Rs 16,000 crore buybacks in June 2018 and October 2020, and the most recent one in January 2022, totaling Rs 18,000 crore.
Share buybacks are known to enhance earnings per share, return surplus cash to shareholders, and provide support to the stock price, especially in sluggish market conditions, according to analysts.
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