ITC shares hit all-time high, top Rs 450 mark ahead of turning ex-dividend

Shares of ITC hit a fresh record high on Monday ahead of the stock turning ex-dividend tomorrow. The scrip has risen nearly 2% intraday to cross the Rs 450 mark for the first time.

ITC has been among the top Nifty gainers so far this year, rising as much as 35%, compared with just the 2% gain in the index.

Along with its March quarter results, ITC's Board has recommended a final dividend of Rs 6.75 and a special dividend of Rs 2.75 per equity share. The dividend, if approved by shareholders at the AGM, will be paid between August 14-17 to eligible members.

The company has fixed May 30 as the record date to determine the eligibility of shareholders, and accordingly, the stock will go ex-dividend tomorrow.

Together with the interim dividend of Rs 6 per share, the FMCG major would pay a total dividend of Rs 15.50 for the financial year 2022-2023.

Shares of companies trade ex-dividend on the day of record date or a day before. When a company goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment. An ex-dividend date also dictates which
shareholders are eligible to receive the dividend payment.

In the past 12 months, ITC has declared an equity dividend amounting to Rs 6 per share, which results in a dividend yield of 1.35%.

What should investors do?
Technically, analysts say short-term traders can look to accumulate the stock on dips for a possible target of Rs 460 in the next 2-3 weeks.

“ITC stock price is in an overall uptrend on the bigger time frame and forming higher lows on a monthly scale from the past five months,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.

“Looking at the overall chart structure we expect the stock to touch new record high levels towards 460 zones with keeping stop loss below 420 level on a closing basis,” recommends Beriwal.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)