Infosys Limited (NYSE:INFY) Increases Dividend to $0.21 Per Share

Infosys Limited (NYSE:INFY) announced a semi-annual dividend on Monday, October 21st, Wall Street Journal reports. Investors of record on Friday, January 1st will be paid a dividend of 0.2126 per share by the technology company on Tuesday, October 29th. This represents a yield of 1.1%. The ex-dividend date is Tuesday, October 29th. This is an increase from Infosys’s previous semi-annual dividend of $0.20.

Infosys has increased its dividend payment by an average of 14.3% per year over the last three years. Infosys has a payout ratio of 39.1% indicating that its dividend is sufficiently covered by earnings. Analysts expect Infosys to earn $0.81 per share next year, which means the company should continue to be able to cover its $0.34 annual dividend with an expected future payout ratio of 42.0%.

Infosys Stock Performance

INFY stock opened at $22.20 on Tuesday. The company has a market capitalization of $91.91 billion, a PE ratio of 29.21, a price-to-earnings-growth ratio of 3.68 and a beta of 0.99. Infosys has a one year low of $16.04 and a one year high of $23.48. The company’s 50 day moving average price is $22.69 and its two-hundred day moving average price is $20.03.

Infosys (NYSE:INFY) last released its quarterly earnings results on Thursday, October 17th. The technology company reported $0.19 earnings per share for the quarter, meeting the consensus estimate of $0.19. The business had revenue of $4.89 billion for the quarter, compared to analysts’ expectations of $4.89 billion. Infosys had a net margin of 17.18% and a return on equity of 32.01%. During the same quarter in the previous year, the business posted $0.18 earnings per share. On average, research analysts predict that Infosys will post 0.75 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on INFY. StockNews.com lowered Infosys from a “buy” rating to a “hold” rating in a research report on Monday. Erste Group Bank raised shares of Infosys from a “hold” rating to a “buy” rating in a research report on Wednesday, September 11th. BMO Capital Markets boosted their price objective on Infosys from $23.00 to $25.00 and gave the company a “market perform” rating in a research note on Friday. Macquarie upgraded Infosys from an “underperform” rating to a “neutral” rating in a research note on Friday, July 19th. Finally, Investec cut Infosys from a “hold” rating to a “sell” rating in a report on Thursday, October 3rd. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, Infosys presently has a consensus rating of “Hold” and an average price target of $20.85.

About Infosys

Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. It provides digital marketing and digital workplace, digital commerce, digital experience and interactions, metaverse, data analytics and AI, applied AI, generative AI, sustainability, blockchain, engineering, Internet of Things, enterprise agile DevOps, application modernization, cloud, digital process automation, digital supply chain, Microsoft business application and cloud business, service experience transformation, energy transition, cyber security, and quality engineering solutions; Oracle, SAP, and Saleforce solutions; API economy and microservices; and Topaz, an AI-first set of services, solutions, and platforms using generative AI technologies.