39% Dividend Yield: Vedanta Okays 2nd Interim Dividend of Rs 11/Share; Buy?

Vedanta's dividend-king stock saw its share price close 1.48% higher on Monday at Rs 261 a share following the announcement of the company's second interim dividend for FY24. The major mining and metals company Vedanta Limited decided on December 18 to grant a second interim dividend of Rs 11 per equity share for the financial year 2023-24 (FY24).

Vedanta Dividend

"In continuation to our Letter No. VEDL/Sec./SE/23-24/163 dated December 13, 2023 and pursuant to Regulation 30 of Listing Regulations, we wish to inform you that the Board of Directors of the Company, in its meeting held today i.e., on Monday, December 18, 2023, has approved the Second Interim Dividend of Rs 11/- per equity share i.e. 1100% on face value of Rs 1/- per equity share for the Financial Year 2023-24 amounting to Rs 4,089 Crores. The record date for the purpose of payment of dividend shall be Wednesday, December 27, 2023 and the interim dividend shall be duly paid within the stipulated timelines as prescribed under law," said Vedanta in a stock exchange filing on Monday.

Vedanta Dividend Yield

An equity dividend of 10150.00% at a face value of Rs 1 (or Rs 101.5 per share) has been declared by Vedanta for the financial year ended in March 2023. A dividend yield of 38.93% is generated at the current share price of Rs 260.60. With five years of consecutive dividend declarations under its belt, the firm has a solid dividend track record. Vedanta Ltd. has announced 41 dividends since July 23, 2001, according to Trendlyne statistics.

Vedanta Share Price Target

KKunal V Parar, Vice President - Technical and Algo at Choice Broking said, "On the hourly chart, the stock has consistently followed an upward trajectory within a rising channel formation, indicating a sustained upward trend. Additionally, the stock has consistently traded above its 50 Days Moving Average, signaling a positive trend and suggesting the potential for substantial upward movement. Examining the weekly chart, the stock has found solid support at the 210 level, demonstrating resilience and creating a favorable environment for a rebound. This support level serves as a strong foundation for anticipating an upward movement, potentially reaching levels between 300 and 340 in the upcoming trading sessions."

"Further supporting this optimistic outlook, the weekly Relative Strength Index (RSI) momentum indicator has exhibited positive momentum by consistently trending above its 50 level. Notably, the RSI has also broken out of its previous downward trend line, indicating a positive market sentiment and potential for further upward movement. In summary, considering the technical analysis outlined above, we anticipate a substantial upside in the stock, with a target range set between 300 and 340. Additionally, a robust support level is identified at 210, reinforcing the bullish outlook for the stock," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.