Vedanta shares to trade ex-dividend on Tuesday

Shares of Vedanta will trade ex-dividend on May 30. The company had earlier announced an interim dividend of Rs 18.5 per share for financial year 2023-24.

The record date to determine the eligibility of equity shareholders has been fixed on May 30. The payout by the company towards the first interim dividend will be Rs 6,877 crore.

Shares of companies will trade ex-dividend on the day or a day before the record date. When a company goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment. An ex-dividend date also dictates which shareholders are eligible to receive the dividend payment.

Vedanta is one of the highest dividend paying stocks on the Street. In the past 12 months, Vedanta has declared an equity dividend of Rs 70 per share, resulting in a dividend yield of 24.35%.

The Mumbai-headquartered company had announced a total of 5 dividends for the fiscal year 2023, taking the total payout for the year to over Rs 101.50 per share.

Meanwhile, a look at the past five financial years data shows that the total dividend payout to investors was Rs 217.65 per share.

On Monday, the stock is trading 0.60% higher at Rs 299 apiece on NSE. The shares have underperformed the benchmark, offering negative returns of 5% so far this year, compared with 2% gain in the Nifty.The stock currently trades at a price to book (PB) value of 1.63, which is below the industry median.

According to Trendlyne data, Vedanta has an average target price of Rs 273.50 and the consensus estimate represents a downside of nearly 9% from the current levels.

For the March quarter, the metals and mining major reported a 68% slump in profit amid declining prices of metals.

Vedanta’s consolidated net profit stood at Rs 1,881 crore for the quarter ended March, compared with Rs 5,799 crore a year earlier. Meanwhile, quarterly revenue too was down 5% to Rs 37,225 crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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