ITC Hits 52-Week High As Stocks Turn Ex-Dividend; Key Things Investors Should Know

Shares of cigarettes to hotels conglomerate ITC Ltd turned ex-dividend on Tuesday. Tuesday is also the record date for the dividend and that board of directors of ITC will determine name of the eligible ITC shareholders for dividend. All eligible shareholders with their names in the list at the end of record date will be eligible to receive dividend.

ITC declared a final dividend of Rs 6.75 per share and a special dividend of Rs 2.75 per share of Re 1 each for the quarter ended March 2023 .

The conglomerate fixed the record date for the dividend as Tuesday, May 30, 2023, and the dividend shall be paid to entitled shareholders of the company on or before 17 August 2023.

ITC had announced a total dividend of Rs 11.50 per share in FY22 and Rs 10.75 per share in FY22. In value terms, ITC’s FY23 dividend is almost three times that of Rs 6,469.48 crore dividend paid in FY22 and Rs 6,152.68 crore dividend paid in FY21.

As of Monday’s closing price, ITC shares offered a dividend yield of 3.45 per cent. This is against a dividend yield of 4.59 per cent in FY22 and 4.92 per cent in FY21.

The stock has gained more than 35 per cent so far this year after gaining nearly 60 per cent in 2022.

Shares have risen 71 per cent from its 52-week low of Rs 258.55. This is in comparison to the Nifty 50 index, which is currently flat on a year-to-date basis.

Analysts are largely positive on ITC shares. JM Financial, which has a target of Rs 475 on the stock, said recent government actions reflect a pretty supportive policy environment for the legal cigarette industry. Motilal Oswal Securities has a target of Rs 485 on ITC. Elara Securities sees the stock at Rs 473 on the stock. Kotak Institutional Equities finds the stock worth Rs 450.

Meanwhile, ITC representatives will be virtually attending the ‘JP Morgan India Consumer C-Suite Access Days’ on June 1.

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