Shares of Hindustan Zinc surged close to 3% on Wednesday as the company announced a fourth interim dividend for the current financial year.
What Happened: The company on Tuesday declared an interim dividend of ₹26/share which would amount to a total of ₹10,985.83 crore. The record date for the dividend payment is March 29. The dividend will be “paid within stipulated timelines as prescribed under law,” the company said in a regulatory filing.
The company has announced a total dividend of ₹75.50 in FY23 including the fourth dividend. The dividend would see Vedanta Resources which owns a majority stake in the company earn ₹7,132 crore in dividend payments.
So if you invested ₹1 lakh in Hindustan Zinc shares, how much dividend can you earn?
A ₹1 lakh investment today, with the stock trading at ₹320 levels, would have fetched around 312 shares of the company. Now if you held the shares up until the record date i.e. March 29, you would receive a total amount of ₹8,112. That translates to around 8% return on your investment.
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However, global analyst firm Citi maintained its ‘sell’ rating for the stock after the announcement with a price target of ₹260. As per the firm, the company will turn net debt from net cash after the dividend payout.
Price Action: Hindustan Zinc shares traded 2.50% higher at ₹318.20 in the early hours of trading on Wednesday.
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