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

Infosys Limited (NYSE:INFY) declared a semi-annual dividend on Monday, October 21st, Wall Street Journal reports. Shareholders 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 of this dividend is Tuesday, October 29th. This is an increase from Infosys’s previous semi-annual dividend of $0.20.

Infosys has increased its dividend by an average of 14.3% annually over the last three years. Infosys has a payout ratio of 39.1% indicating that its dividend is sufficiently covered by earnings. Research 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

Shares of INFY opened at $22.16 on Wednesday. The firm has a market capitalization of $91.74 billion, a price-to-earnings ratio of 29.16, a price-to-earnings-growth ratio of 3.68 and a beta of 0.99. The stock’s fifty day moving average is $22.70 and its 200-day moving average is $20.06. Infosys has a one year low of $16.04 and a one year high of $23.48.

Infosys (NYSE:INFY) last announced its earnings results on Thursday, October 17th. The technology company reported $0.19 EPS for the quarter, hitting the consensus estimate of $0.19. Infosys had a return on equity of 32.01% and a net margin of 17.18%. The firm had revenue of $4.89 billion for the quarter, compared to analysts’ expectations of $4.89 billion. During the same quarter in the previous year, the company earned $0.18 earnings per share. Analysts forecast that Infosys will post 0.75 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms recently commented on INFY. Macquarie raised shares of Infosys from an “underperform” rating to a “neutral” rating in a research note on Friday, July 19th. StockNews.com cut Infosys from a “buy” rating to a “hold” rating in a report on Monday. BMO Capital Markets lifted their price target on Infosys from $23.00 to $25.00 and gave the stock a “market perform” rating in a research note on Friday, October 18th. Investec downgraded shares of Infosys from a “hold” rating to a “sell” rating in a research report on Thursday, October 3rd. Finally, Erste Group Bank upgraded shares of Infosys from a “hold” rating to a “buy” rating in a report on Wednesday, September 11th. Two research analysts have rated the stock with a sell rating, five have given a hold rating and six have given a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $20.85.

Infosys Company Profile

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.