HDFC Bank HDFC shares are in focus today as they turn ex-dividend. Both lenders announced a hefty dividend for shareholders from their net profits for FY23. While HDFC Bank is paying a 1,900% dividend, HDFC will pay a 2,200% dividend for FY23.
The ex-dividend date determines which shareholders will receive the announced dividend of the company on that specific date. It is the day when the stock of the company goes ex-dividend, meaning the stock from that day does not carry the value associated with its next dividend payment.
HDFC Bank in April month recommended a dividend of 1,900% aggregating to Rs 19 per equity share from the profits of the fiscal year FY23. The dividends are subject to the approval of the shareholders at the ensuing annual general meeting (AGM) of the bank.
HDFC Bank has fixed May 16 as the record to determine the eligibility of members entitled to receive the dividend on equity shares. HDFC Bank's latest dividend is up 22.58% compared to the dividend paid in the previous fiscal.
In FY22, HDFC Bank paid a dividend of Rs 15.50 per equity share (1,550%) to shareholders. At the current market price, HDFC Bank's annual dividend yield is at 1.15%.
HDFC is set to pay a dividend of Rs 44 per equity share of face value of Rs 2 each for the financial year ended March 31, 2023. The company also fixed May 16 as the record date to determine eligible shareholders for the benefit.
In the previous fiscal FY22, the dividend payment was 1,500% to Rs 30 per share; and in FY21, the dividend paid was to the tune of 1,150% to Rs 23 per share. In FY20, it paid a dividend of 1,050% aggregating to Rs 21 per share.
At the current market price, HDFC's annual dividend yield is at 1.61%. HDFC dividend will be paid to shareholders on June 3.
On Tuesday, i.e. the ex-dividend date, HDFC Bank share price fell nearly 1% to Rs 1,660.30 on NSE. While HDFC share price fell more than 1.5% to Rs 2,739.20 apiece on NSE.
Those holding 100 shares of HDFC Bank will receive a dividend of Rs 1,900 for FY23. Meanwhile, shareholders holding 100 shares for HDFC will receive a dividend of Rs 4,400. For someone holding 50 shares of both HDFC Bank and HDFC, the dividend income would be Rs 3,150 from both companies.
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