Vedanta may give out another ₹20 a share dividend.
Vedanta may declare an additional ₹20 per share dividend in FY25, following a recent ₹11 dividend announcement. Shares rose 2.15% to ₹442.50 on the BSE.
Market expectations indicate that Vedanta, led by mining billionaire Anil Agarwal, may declare an additional ₹20 per share dividend in FY25. On Wednesday, May 15, a Phillip Capital analyst predicted a potential ₹30 per share dividend from Vedanta. However, on the following day, Thursday, May 16, Vedanta announced an ₹11 per share dividend, suggesting a possible ₹20 per share dividend still to come in FY25.
Vedanta has been a high-risk, high-reward stock, with its share price increasing more than sevenfold over the past four years. The real highlight is its substantial dividend payouts, totaling ₹217 per share so far.
If you bought Vedanta stock at ₹60 in March 2020 and held onto it, your stock would now be worth ₹440, with an additional dividend payout of ₹217. The record date for the recently announced dividend is May 25, 2024. Vedanta's policy requires distributing all dividends received from its subsidiary, Hindustan Zinc Limited (HZL), to its shareholders, benefiting shareholders and helping Vedanta Resources manage its debt obligations. Over the past four years, Vedanta has distributed ₹80,000 crore in dividends, with the promoter, who remains the largest shareholder despite fluctuations, being the primary beneficiary.
For FY25, Vedanta Resources has a debt obligation of approximately $1.1 billion, half of which will be covered by already declared dividends and royalty fees.
Vedanta Ltd shares closed at ₹442.50, up ₹9.30 or 2.15%, on the BSE.