Rs 4.50/Share Dividend: Ex-Date In 4 Days On 28th March; Buy PSU Maharatna Stock?

The government-owned Rural Electrification Corporation Limited (REC) offers financial support to state power companies, the private sector, and state electricity boards. As of Friday's BSE closing session, the blue chip company in the financial services industry has left a market capitalization of Rs 1,21,286.30 Cr. This week, the stock shall be closely watched since on March 28th, it will ex-date for a dividend distribution of Rs 4.50.

REC Dividend

The Board of Directors of REC Limited in its meeting held on March 19, 2024 considered and approved 3rd interim dividend of Rs 4.50/- per equity share of Rs 10/-each for the financial year 2023-24.

"Further, as earlier informed, the record date for the said interim dividend is Thursday, March 28, 2024 and the said interim dividend shall be paid on or before April 17,2024 to those shareholders, whose names appear (a) as beneficial owners in the statement(s) furnished by the depository(ies) as on the close of business hours on March 28,2024 in respect of shares held in electronic form; and (b) as members in the register of members on March 28, 2024 in respect of physical shares," said REC in a stock exchange filing on March 19, 2024.

REC News

"In compliance with the provisions of Regulation 29 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, this is to inform that Board of Directors of REC Limited in its board meeting scheduled to be held on Wednesday, March 27, 2024, inter-alia will consider a proposal for approval of market borrowing programme of the Company for the financial year 2024-25," the company recently informed to the stock exchanges.

REC Dividend Yield

REC has announced an equity dividend of 126.00% or Rs 12.6 per share at a face value of Rs 10 for the financial year ended in March 2023. This generates a dividend yield of 2.74% at the current share price of Rs 460.60. For the past five years, the firm has regularly distributed dividends and has a strong dividend track record. Since September 8, 2008, REC Ltd. has announced 36 dividends, according to Trendlyne statistics.

REC Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, RECLTD, currently trading at 450 levels, has established a robust support zone spanning 425-415 levels, evident from its recent strong rebound. The presence of a hammer-like candlestick pattern on the weekly charts near this support range signifies a potential reversal of the short-term bearish trend.

On the upside, a minor resistance is observed near 470 levels. A successful breach of this resistance level could propel the stock towards its all-time high levels of 520 and beyond.

Investors holding positions from lower levels are advised to maintain a trailing stop loss at 415 to protect their gains. For fresh investments, purchasing at the current market price of 450 is recommended. Additionally, investors can consider buying on pullbacks towards the 430 levels, setting a stop loss at 415, with a target price of 520 and higher.

Overall, the technical outlook for RECLTD suggests a favourable risk-reward scenario, with potential upside momentum supported by strong historical support levels and bullish candlestick patterns.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.