Edelweiss Financial Services Limited’s stock surged nearly 4% on August 27, following the announcement of a dividend increase. The company will raise its dividend to ₹1.50, payable on October 27. This move results in a dividend yield of 1.4%, which aligns with industry standards.
The stock has risen by 42% in the past three months, a significant gain for shareholders. This increase in share price is notable and contributes to a lower dividend yield despite the higher payment.
Edelweiss Financial Services has a history of paying dividends, though it has made cuts in the past decade. The dividend payment has grown from ₹0.65 in 2014 to ₹1.50 in the most recent fiscal year, reflecting an annual growth rate of 8.7%. Despite this growth, the company has had at least one major dividend cut, which might affect its appeal for investors relying solely on dividend income.