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ITC Shares Surge to Record High Ahead of Ex-Dividend Date; Company Announces Impressive Dividend Payouts

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ITC Shares Surge to Record High Ahead of Ex-Dividend Date; Company Announces Impressive Dividend Payouts
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Key Takeaways

    • ITC Ltd shares surged on Monday, reaching a record high just before going ex-dividend on May 30, 2023.
    • The company’s stellar performance and the announcement of generous dividend payouts have captivated investors’ attention, driving the stock price to new heights.
    • Traders are advised to capitalize on any potential price declines, as experts project a target of Rs 460 within the next 2-3 weeks.
    • ITC Ltd reported a remarkable 21.37 percent year-on-year increase in standalone profit for the March quarter.
    • Prominent financial firms have expressed their positive outlook on ITC Ltd, forecasting target prices for the stock.
    • With a strong financial performance, substantial dividend payouts, and a supportive policy environment, ITC Ltd remains a compelling investment opportunity for traders and investors alike.

Shares of ITC Ltd surged on Monday, reaching a record high just before going ex-dividend on May 30. The company’s stellar performance and the announcement of generous dividend payouts have captivated investors’ attention, driving the stock price to new heights. Traders are advised to capitalize on any potential price declines, as experts project a target of Rs 460 within the next 2-3 weeks.

ITC dividend

The board of ITC Ltd, during the release of its March quarter results earlier this month, recommended a final dividend of Rs 6.75 per equity share for the fiscal year 2022-2023. Additionally, the board proposed a special dividend of Rs 2.75 per equity share. When combined with the interim dividend of Rs 6 per share declared on February 3, the total dividend for FY 2022-2023 is expected to reach an impressive Rs 15.50 per share.

ITC Ltd, renowned for its presence in the fast-moving consumer goods (FMCG) sector, disclosed that the total cash outflow for dividends, including the interim dividend of Rs 7,448.41 crore paid in March 2023, would amount to Rs 19,255.02 crore for the fiscal year. Comparatively, the company disbursed a total dividend of Rs 11.50 per share, totaling Rs 6,469.48 crore in FY 2021-2022, and a dividend of Rs 10.75 per share in FY 2020-2021, aggregating Rs 6,152.68 crore. The dividend yield for FY 2021-2022 stood at 4.59 percent, slightly lower than the 4.92 percent recorded in FY 2020-2021.

According to the recent filing with the National Stock Exchange (NSE), the dividends announced in May will be paid between August 14 and August 17, providing shareholders an opportunity to benefit from the company’s robust financial performance.

ITC Ltd reported a remarkable 21.37 percent year-on-year increase in standalone profit for the March quarter, amounting to Rs 5,086.90 crore, compared to Rs 4,190.96 crore during the corresponding period last year. The company’s revenue for the quarter also displayed a positive trajectory, rising 6.14 percent year-on-year to Rs 17,224 crore from Rs 16,226.63 crore.

Prominent financial firms have expressed their positive outlook on ITC Ltd, forecasting target prices for the stock (ITC share price). JM Financial predicts a target of Rs 475, while Motilal Oswal Securities projects a target of Rs 485. Elara Securities sees the stock reaching Rs 473, while Kotak Institutional Equities deems the stock’s worth to be Rs 450.

As of the latest trading session, ITC shares were valued at Rs 449.90 apiece, experiencing a 1.4 percent increase. Impressively, the stock has witnessed a significant surge of 35 percent year-to-date and an outstanding 67 percent over the past year.

With a strong financial performance, substantial dividend payouts, and a supportive policy environment, ITC Ltd remains a compelling investment opportunity for traders and investors alike.

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