Tata Steel Dividend: Shares of Tata Steel are going to turn ex-dividend stock on Wednesday as the board of directors of Tata Steel has fixed June 15, 2022, as the record date for final dividend payment. In its filing dated May 4, 2022, the board of directors of Tata Steel said, “Recommended a dividend of Rs. 51 per fully paid-up Ordinary Share of Rs 10/- each (510 per cent) to the shareholders of the Company for the Financial Year ended March 31, 2022. Further, in respect of the outstanding partly paid-up Ordinary Shares of the Company on which call money remains unpaid as on the date of book closure for the dividend payment, the dividend will be paid in proportion to the amount paid-up on such shares, i.e., Rs 12.75 per partly paid-up Ordinary Share of Rs 10/- each (paid-up Rs 2.504 per share) (510 per cent).”
Tata Steel has informed Indian exchanges that a final dividend of Rs 51, if approved, will be paid on and from July 2, 2022. This final dividend of Rs 51 is subject to the approval of the shareholders and board of directors at the Annual General Meeting (AGM) scheduled on June 28, 2022. Tata Steel’s share price today is ₹997 and the final dividend announced is Rs 51. Hence, the annual dividend yield of Tata Steel is around 5.11 per cent [(51/997)x100].
The company has a great dividend track report and it has regularly declared dividend for the last 5 years, without fail. The dividend yield is 4.99 per cent if we look at the current share price of Rs 1023.70 a piece.
Tata Steel has emerged as one of the largest steel producers in Europe with a crude steel production capacity of over 12.4 MnTPA. It established its presence in the European continent after acquiring Corus in 2007. Meanwhile, Tata Steel’s operations in South-East Asia, with 2.2 MnTPA capacity, began in 2004 with the acquisition of NatSteel, Singapore. The market capitalization as of writing this report is Rs 125,063 crore. Earlier, Tata Steel declared a jump of 47 per centYoY in its net profit at Rs 9756.20 crore for Q4 ending March 31, 2022. Revenue from the operations jumped 38.6 per cent YoY to Rs 69,323.5 crore for Q4 ending March 31 as against Rs 50,028.37 crore in Q4 FY21.
Should you Buy the Tata Steel Stock Now?
Shares of Tata Steel fell to a fresh 52-week low in a volatile market on Tuesday. Tata Steel stock touched a low of Rs 987.65, down 0.5 per cent against the previous close of Rs 992.70 on BSE. The Tata Group stock hitting a fresh low may make it look an attractive buy but experts have called for adopting a cautious stance amid volatile market conditions.
Shares of Tata Steel are trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Later, the stock was trading in the green. The large cap stock rose up to 2.12 per cent intraday to Rs 1,013.75 on BSE. The stock has gained after three sessions.
Manoj Dalmia, founder, and director, Proficient Equities Private limited, said: “Tata Steel is trading at Rs 997. The stock might plunge to further levels due to export duty on steel, inflation, and increasing interest rates globally as the steel industry is highly leveraged the debts might become costlier leading to higher interest expense. We expect the stock to reach Rs 885 and Rs 837 levels on the downside which can be a good place to accumulate. Investors should avoid heavy buying as of now due to bearish sentiments in markets.”
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