This research paper examines the dividend payout trends of prominent Indian information technology (IT) sector firms over an eleven-year period, from the fiscal years 2013-2014 to 2023-2024. By analyzing the top ten dividend-paying IT companies-including both NIFTY 50 constituents and other significant players-the study reveals considerable fluctuations in the annual percentages of earnings distributed as dividends. The findings underscore that dividend policies within this dynamic sector are not uniform and are significantly influenced by individual company strategies, prevailing market conditions, and broader economic factors. Notably, while large-capitalization firms such as TCS, Infosys, and Tech Mahindra demonstrated a tendency toward more stable dividend pay-outs, mid-sized firms-particularly Info Edge-exhibited more erratic distribution patterns. The research also highlights the impact of external events, such as the COVID-19 pandemic, on dividend decisions, showcasing the sector’s responsiveness to economic disruptions and subsequent recoveries. Ultimately, the paper advocates for investors to adopt a long-term perspective when evaluating the financial performance and dividend policies of Indian IT companies, cautioning against relying solely on short-term annual figures due to the inherent cyclicality observed in dividend payouts within the sector. The application of trend analysis and the least squares trend model provides a robust quantitative framework for understanding these underlying patterns.
Yadav et al. (Sun,) studied this question.