Tech dividend largesse

Amid all the gloomy forecasts, there is some comforting news from the frontline IT companies.

Armed with factors such as stable cash generation and low reinvestment requirements in their current business, these firms have given healthy pay-outs to their shareholders in the form of dividends, special dividends and buybacks.

A study by Motilal Oswal Financial Services shows that the Tier-I Indian IT companies — TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra — have returned enormous amounts of capital over the last five years.

The study said that cumulatively over the last five years (2015-16 to 2019-20), they have paid out Rs 2.3 trillion. The brokerage added that during 2019-20, the total payout of these firms stood at Rs 65,000 crore, the same as 2017-18 levels, despite a much lower payout by HCL Technologies.