Three IT majors have announced their latest shareholder payouts, but the company paying the highest dividend per share did not deliver the highest income return on current prices. Based on dividend yield, Wipro stands ahead of TCS and HCLTech.
That changes the usual ranking many investors assume when they only compare the rupee amount declared by each company.
TCS declared the biggest annual payout at Rs 110 per share for FY26. HCLTech follows at Rs 60 per share, while Wipro stands at Rs 11 per share. But when measured against the latest market price, Wipro's dividend yield is 5.39%, HCLTech's is 4.16% and TCS' is 1.18%.
Who Won
If an investor's goal is regular income, Wipro comes first on dividend yield despite having the lowest rupee payout. HCLTech ranks second, while TCS ranks third.
This shows that a high dividend amount does not always mean more money in percentage terms. What matters is how much dividend you receive compared with the price paid for the share.
ALSO READ: TCS Vs Wipro Vs HCLTech: Which IT Stock Offers Highest Yield After Final FY26 Payout? Details Inside
How To Calculate
Dividend yield is calculated using a simple formula:
Dividend Yield= (Dividend Per Share/Share Price) x 100
Example: If a company pays Rs 20 dividend in a year and the share trades at Rs 400, the dividend yield will be:
(20/400) x 100=5%
That means an investor earns a 5% annual cash return on the current share price, excluding any movement in the stock price.
Company Updates
HCLTech announced a final dividend of Rs 24 per share on April 21 for FY26. It set April 25 as the record date and said payment will be made by May 5.
The declaration takes HCLTech's total FY26 dividend to Rs 60 per share after three interim dividends of Rs 12 each earlier in the year. Bloomberg estimates had valued FY26 dividend at Rs 57.12.
ALSO READ: HCLTech Q4 Results: Profit Rises 10% To Rs 4,488 Crore, Revenue Flat On Low Discretionary Spends
Tata Consultancy Services recommended a final dividend of Rs 31 per share on April 9 with its fourth-quarter results. That lifted total FY26 dividend to Rs 110 per share, including Rs 79 per share already paid earlier.
TCS has not yet announced the record date for the final dividend payment.
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Wipro declared no fresh dividend with its March quarter results on April 16. Its FY26 payout remains Rs 11 per share, made up of Rs 5 per share in Q1 and Rs 6 per share in Q3. The dividend decision came alongside consideration of a Rs 250 per share buyback, Wipro's first in three years. The cumulative buyback size stands at Rs 15,000 crore.
Bottom Line
Investors comparing only headline dividend amounts may miss the full picture. Based on current dividend yield, Wipro offered the strongest income return, followed by HCLTech and TCS.
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