RITES Limited, a prominent PSU stock affiliated with the Ministry of Railways, has declared a significant dividend payout to its shareholders, offering a lucrative opportunity for investors in the Indian Railway stock.
RITES Limited has approved a generous dividend payment of 47.50% per share, amounting to Rs 4.75. This marks the third interim dividend declared by the company for the fiscal year 2023-24, showcasing its commitment to rewarding investors for their support.
Record Date Set
To facilitate the dividend distribution process, RITES Limited has announced February 9 as the record date for determining shareholder eligibility. On this date, shareholders must own shares to qualify for the dividend payment, with shares turning ex-date on the same day.
Understanding Dividend Yield
With RITES Ltd shares closing positively at Rs 710, investors can anticipate a dividend yield of 2.85% at the current market price. Dividend yield, expressed as a percentage, reflects the ratio of annual dividends paid per share to the share price.
Historical Dividend Performance
Reviewing RITES Ltd’s dividend history reveals consistent payouts to investors. In 2023, the company distributed dividends on four occasions, with amounts ranging from Rs 3.75 to Rs 6 per share. Similarly, in 2022 and 2021, RITES Ltd maintained a commendable track record of dividend payments to shareholders.
Share Price Performance
RITES Ltd has demonstrated robust share price performance, with notable gains recorded across various time frames. Over the past year, the Indian Railway stock has delivered impressive returns, outperforming market expectations and multiplying investors’ wealth significantly.
Market Cap and Outlook
As of February 2, RITES Ltd commands a substantial market capitalization of Rs 16,787.49 crore, highlighting its stature in the market. With its inclusion in the S&P BSE 500 index and promising growth prospects, RITES Ltd remains an attractive investment option for discerning investors seeking exposure to PSU stocks.