InvestorQ : Is it true that Vedanta is planning to declare a bumper dividend to shareholders?
Dilmini Mercia made post

Is it true that Vedanta is planning to declare a bumper dividend to shareholders?

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Dawn Cherian answered.
5 months ago
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Anil Agarwal’s Vedanta has traditionally had a very high dividend ratio and with the latest boom in commodity prices, the company is paying out heavily in dividends. The company is planning a second dividend paying this year with an interim dividend announcement of Rs.13.50 per share, aggregating to a total dividend pay-out of Rs.5,019 crore. This will be on top of the record Rs.7,600 crore dividend pay-out announced by Hindustan Zinc.

Needless to say, the biggest beneficiary of this generous pay-out of dividend will be the parent company; London-based Vedanta Resources. Vedanta has always been looking to use hefty dividend pay-outs by Vedanta and Hindustan Zinc to clear its group debt. This is after the company announced record profits for the Sep-21 quarter, which surged nearly 5-fold on the back of robust commodity demand and spike in commodity prices.

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