Indian blue-chip company ITC Ltd. is once again drawing attention from investors — and this time, it’s not just about its FMCG business or the much-talked-about hotel demerger. With a fresh interim dividend on the table and the record date fast approaching, investors are eyeing the opportunity to benefit from one of the most consistent dividend payers on the Indian stock exchange.
The announcement of a ₹6.50 per share interim dividend for the financial year 2024-25 comes on the heels of ITC’s Q3 results and marks the company’s first dividend declaration since its structural overhaul involving the spin-off of its hotel business. While the move has sparked renewed interest in ITC’s stock, it also raises questions about what the dividend means for both long-term investors and those considering a quick entry for income gains.
Let’s unpack the key details — from eligibility dates and payout timelines to the broader context of ITC’s dividend history and stock performance.
The ₹6.50 Dividend: A Snapshot
In a regulatory filing on February 6, 2025, ITC confirmed that it will pay an interim dividend of ₹6.50 per share for FY25. Given that ITC's stock has a face value of ₹1, this translates to a 650% payout, reflecting the company's strong balance sheet and shareholder-first approach.
At the current trading price, this equates to a dividend yield of approximately 3.2%, which is competitive — especially for conservative or income-focused investors looking to park funds in fundamentally sound companies.
What’s notable is the timing. This dividend comes shortly after the demerger of ITC Hotels — a move that was widely viewed as an attempt to unlock shareholder value and streamline operations. Despite this significant restructuring, the company is signaling that shareholder rewards remain a top priority.
Are You Eligible? Here's What to Know About the Record Date
The record date for this dividend has been set as February 12, 2025. This is the cut-off used to determine which shareholders are eligible to receive the payout. If you hold ITC shares in your demat account by the end of trading on February 12, you qualify.
It’s worth pointing out how the settlement cycle works here. Under India’s T+1 settlement system, any shares you buy are reflected in your demat account the next trading day. So, if you're planning to purchase ITC shares specifically to capture the dividend, you’ll need to complete your buying no later than February 11, 2025.
After that, ITC shares will trade ex-dividend — meaning buyers from February 12 onward will not be entitled to the ₹6.50 payout.
Dividend Payment Timeline
For those eligible, the actual payment of the dividend will take place between March 6 and March 8, 2025. Investors can expect the amount to be directly credited to their registered bank accounts, assuming all KYC and account linkage requirements are met.
This payout schedule was officially outlined by the company in its February 6 filing, and historically, ITC has followed through on dividend disbursements without notable delays.
A Look at ITC’s Dividend Track Record
ITC has long been favored by dividend-seeking investors, thanks to its regular and often generous payouts. Even before the latest announcement, the company had declared two dividends in 2024 — ₹7.50 per share in June and ₹6.25 in February. Going back a bit further, shareholders received ₹15.50 per share in 2023 and ₹11.50 in 2022.
This consistency isn’t accidental. ITC’s diversified business model — spanning FMCG, cigarettes, agri-business, and paperboards — has allowed it to maintain strong cash flows. Despite regulatory headwinds in its tobacco division and evolving consumer trends, the company has maintained profitability and cash generation, making these dividend payments sustainable.
It’s also notable that ITC hasn't significantly diluted its dividend strategy post-demerger — which is often a risk when a company undergoes major restructuring.
Stock Performance: A Mixed Bag Lately
As of now, ITC’s stock is trading at ₹425.65, showing a minor decline of 0.47% during early trading hours. Over the last 52 weeks, the share price has ranged between ₹399.35 and ₹528.50, reflecting moderate volatility within a fairly broad band.
The short-term chart, however, tells a more cautious story. Over the past five days, the stock has slipped about 6%. In the last month, it’s down around 3%, and over the past six months, the decline is steeper — nearly 13%.
But on a year-over-year basis, ITC has still delivered a positive return of 4%, which is noteworthy considering broader market jitters and the internal changes the company has undergone.
In other words, while the stock isn’t in high-growth territory at the moment, it continues to hold value for those prioritizing income over capital appreciation.
For Investors: Should You Be Buying ITC Now?
There are a few ways to look at this, depending on your investment style.
- For dividend hunters, ITC still stands out. A 3.2% yield, paid reliably, in a large-cap Indian company with relatively low debt and strong cash flows is a solid proposition — particularly when compared to the interest rates on savings instruments or even some debt funds.
- For long-term investors, the recent correction might even present an attractive entry point. ITC has already absorbed much of the post-demerger adjustment, and with its core businesses still intact, the long-term thesis hasn’t changed drastically.
- For short-term traders, the picture is less clear. The stock has faced some downward pressure, and until broader market sentiment stabilizes or there's a fresh earnings trigger, price action might remain subdued.
As always, a one-size-fits-all approach rarely works in the market. But what’s evident is that ITC has continued to deliver value to its shareholders, even in uncertain times — and that’s a trait worth noting.
Final Thoughts: A Solid Bet for Stability and Income
ITC’s latest dividend announcement reinforces what many seasoned investors already know — the company remains one of the more reliable income-generating stocks in the Indian equity landscape.
Even after spinning off its hotel business, ITC has stayed committed to its dividend policy, sending a clear signal that it intends to balance long-term growth with consistent shareholder rewards. With the record date approaching on February 12, 2025, investors interested in capturing this payout need to act accordingly.
But more than just the dividend, ITC represents something rare in today's market: a stable, cash-rich business that doesn’t chase headlines but quietly delivers results year after year.
Whether you’re a new investor building your first portfolio or a seasoned one rebalancing for yield, ITC remains a name worth considering — not just for the ₹6.50 this March, but for what it continues to represent in an otherwise unpredictable market.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It does not constitute legal, financial, or professional advice.
