Rs 23/Share Infosys Dividend: Everything that shareholders need to know

Infosys -- India's second-largest software exporter -- on Thursday announced an interim dividend of Rs 22 per equity share, a 460 per cent payout given the face value of Rs 5 per equity share. This marks the Bengaluru-based IT giant's second dividend announcement this year.

Infosys declares 460% dividend | Eligible investors to receive Rs 23 per share

The IT major has set October 27 as the record date for the dividend.

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Shareholders holding at least one Infosys share on this day will qualify to receive the payout.

Corporate Action Alert | When will qualifying shareholders receive Rs 23/share payout?

The company said that the dividend will be paid on November 7.

Infosys results

The IT firm reported a sequential increase of 6.4 per cent in its net profit to Rs 7,364 crore for the September quarter, beating Street estimates.

Its revenue grew from Rs 42,279 crore in the previous quarter to Rs 44,490 crore in the July-September period, according to a regulatory filing.

According to Zee Business research, Infosys's September-quarter net profit was estimated at Rs 7,226 crore and revenue at Rs 44,126 crore. Read more about Infosys earnings

Here are answers to a few frequently asked questions (FAQs) about dividends:

What is a dividend?

A dividend is a type of corporate action that lets a listed company to share a portion of its profits with its shareholders.

What is a dividend's record date?

The record date is a crucial cut-off date that a listed company sets to determine which shareholders are eligible to receive a declared dividend.

What is a dividend's ex-date?

It is the first day when the stock trades without the value of the upcoming dividend.

An ex-date is different from a record date. If you buy the stock on or after the ex-dividend date, you will not get the dividend.

Only shareholders owning the stock by the record date qualify.

Can a listed company skip paying dividends after declaring them?

Once a company declares a dividend, it is legally obligated to pay it to shareholders on the payment date.