After 680% Dividends In FY23, Infosys Declares Rs 18/ Share Dividend For FY24; How To Be Eligible?

While announcing its Q2FY24 earnings report on Thursday, second largest IT firm in India, Infosys has also announced a reward for its shareholders by recommending dividend of Rs 18 per share for FY24. In FY23 alone, the company paid a huge 680% dividend.

On Thursday, Nilanjan Roy, CFO at Infosys said, "In line with our capital allocation policy, the Board has announced an interim dividend of Rs 18 per share, an increase of 9.1% over last year."

Infosys has fixed October 25 as the record date to determine eligible shareholders for the dividend payout. Also, this will be the ex-dividend date for Infosys shares.

Further, the company plans top pay the dividend on November 6, 2023.

Infosys has a consistent track record of rewarding its shareholders with hefty dividends. In FY23, the company paid a dividend of 680% amounting to Rs 34 per share to investors. On the current price level, Infosy's dividend yield is at 2.27%.

As per Trendlyne data, since October 2000, Infosys has declared a whopping 49 dividends for shareholders. Further, it highlighted that the Infosys Relative Strength Index (RSI) is at 61, which is in the mid-range. However, the company's Money Flow Index (MFI) is at 61.6.

Also, Infosys TTM PEG Ratio is at 2.3%, which is high in the industry, while beta 1-year is at very high volatility at 1.37. The stock's 200-Day SMA is at Rs 1,423.9 per share.

Generally, dividends are distributed also in a certain proportion by listed companies from their net profits earned in a respective financial year. The record date is proposed by the listed company's board of directors to determine the name of the eligible shareholders for dividends. As per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date. Meanwhile, the ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

During Q2FY23, Infosys posted a consolidated net profit of Rs 6,212 crore which is attributable to the owners of the company, registering a growth of 4.5% QoQ and 3.2% YoY. However, Infosys sees its top-line front under pressure ahead as it trims the upper-end of constant currency revenue growth guidance.

In the quarter, in the quarter, in constant currency, Infosys delivered $4,718 million in Q2 revenues with year-on-year growth of 2.5% and sequential growth of 2.3% in constant currency. Large deal TCV for the quarter was $7.7 billion, with a net new of 48%. Also, attrition declined further to 14.6%. FY24 revenue guidance revised to 1.0%-2.5% and operating margin guidance retained at 20%-22%