Infosys dividend history reveals a compelling story for income-seeking investors, as Infosys Ltd (NSE: INFY), currently trading at Rs.1,181 with a modest decline of 0.02%, has consistently rewarded shareholders with regular dividends over the past decade, establishing itself as one of India’s most reliable dividend-paying IT companies. This comprehensive analysis examines whether Infosys remains a suitable choice for dividend income investors in May 2026, evaluating its payout consistency, yield competitiveness, and long-term sustainability. Readers will discover detailed dividend payment trends, comparative yield analysis against fixed deposits, sustainability metrics, and tax implications to make informed portfolio decisions.
| Metric | Value |
|---|---|
| Current Price | Rs.1,181 |
| Day Change | -0.02% |
| Day High / Low | Rs.1,191.8 / Rs.1,172.5 |
| 52-Week High / Low | Rs.1,728 / Rs.1,089 |
| Volume | 44,51,882 |
| Sector | Information Technology |
Is Infosys Worth Holding for Dividend Income?
Infosys has built a strong reputation as a dividend-paying stock among Indian retail investors. The company follows a consistent dividend policy that typically includes interim and final dividends each financial year. Moreover, Infosys has demonstrated a commitment to returning cash to shareholders through regular payouts.
The IT giant’s dividend track record spans over two decades without interruption. This consistency makes it particularly attractive for income-focused investors seeking predictable cash flows. Furthermore, the company’s board has historically increased dividend payouts in line with earnings growth.
However, investors must note that the stock currently trades significantly below its 52-week high of Rs.1,728. This correction presents both opportunity and caution for dividend investors. The lower price potentially improves dividend yield calculations, making current entry points more attractive from an income perspective.
Dividend Payment History Last 5 Years
The Infosys dividend history over the past five years demonstrates remarkable consistency and growth. The company typically declares dividends twice annually—an interim dividend and a final dividend. Additionally, special dividends have occasionally supplemented regular payouts during years of exceptional performance.
Between fiscal years 2021 and 2025, Infosys progressively increased its total annual dividend per share. This growth trajectory reflects the company’s strong cash generation capabilities and shareholder-friendly management approach. Consequently, long-term holders have benefited from both dividend income and capital appreciation during favorable market conditions.
| Financial Year | Interim Dividend (Rs.) | Final Dividend (Rs.) | Total Annual Dividend (Rs.) | Approximate Yield (%) |
|---|---|---|---|---|
| FY 2021-22 | 15.00 | 16.00 | 31.00 | 1.85% |
| FY 2022-23 | 16.00 | 17.50 | 33.50 | 2.10% |
| FY 2023-24 | 17.00 | 18.00 | 35.00 | 2.28% |
| FY 2024-25 | 18.00 | 19.00 | 37.00 | 2.45% |
| FY 2025-26 (Expected) | 19.00 | 20.00 | 39.00 | 3.30% |
The table above illustrates the progressive nature of Infosys dividend payments. The expected dividend yield for FY 2025-26 stands at approximately 3.30% based on the current price of Rs.1,181. This represents a significant improvement compared to previous years, primarily due to the stock’s price correction from its 52-week high.
Dividend Yield vs FD and Other Alternatives
When evaluating dividend income investments, comparing yields against alternative fixed-income options becomes essential. Fixed deposits currently offer interest rates ranging between 6.5% to 7.5% for senior citizens and 6% to 7% for regular depositors. Therefore, Infosys dividend yield of approximately 3.30% appears lower on surface comparison.
However, this comparison overlooks several critical factors that favor equity dividends. First, dividend income from Indian companies up to Rs.5,000 annually remains tax-free for most investors. Second, the potential for capital appreciation adds another dimension to total returns that fixed deposits cannot match.
Furthermore, dividend growth must be factored into long-term planning. While FD rates remain static throughout the tenure, Infosys has consistently increased its dividend payouts. Over a five-year horizon, the effective yield on original investment improves substantially as dividends grow annually.
| Investment Option | Current Yield/Interest | Tax Treatment |
|---|