800% Dividend: Shares of CRISIL Ltd will trade ex-dividend tomorrow; do you own it?

While Indian benchmark indices fluctuated between gains and losses during the session due to considerable losses in numerous sectors, investor optimism was observed in the information technology and metal sectors. Shares of CRISIL Ltd were in the spotlight despite trading lower as they will trade ex-dividend tomorrow, August 02, 2023. CRISIL is one of the companies that has continuously paid out significant dividends to shareholders; consequently, investing in it can be considered dividend investing. 

The practice of buying shares of companies that regularly distribute dividends to shareholders is known as ‘dividend investing.’ In addition to the growth in your portfolio as your stock gains, dividends can offer a consistent income stream from your investments. 

The company has been distributing a healthy dividend every quarter for many years. The total dividend amount paid in 2022 was Rs 47 per share or 4,700% of the face value of Re 1 per share. The board of directors of the company has recommended an interim dividend of Rs 8 per equity share of the face value of Re 1 each for the financial year ending December 31, 2023, subject to the approval of the shareholders at the annual general meeting.  

The company’s consolidated income from operations surged 15.3% to Rs 771 crore in Q2 2023, compared with Rs 668.5 crore in the corresponding quarter of the previous year. Profit after tax climbed 10% to Rs 150.6 crore in Q2 2023, compared with Rs 136.9 crore in the corresponding quarter of the previous year. Profitability is reflected in the company’s healthy ROE and ROCE levels, as well as outstanding EPS, whereas a high PE ratio is cause for concern.  

CRISIL Ltd is a globally diversified analytical company that provides ratings, research, risk and advisory services. Keep a close eye on this stock for the upcoming sessions! 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.