1300 per cent dividend stock: Small-cap company announces special dividend; this is how much investors may get!

While the Q4FY23 results thrilled market participants, the announcement of a special dividend left them utterly amazed

Managing a corporation involves crucial decisions, and one of the most vital ones is distributing earnings to shareholders. This redistribution of accumulated wealth is typically done through dividends or share buybacks. Dividends, in the context of a going concern, are commonly categorized as Interim, Final, or Special. A final dividend is paid if approved by the company during its Annual General Meeting based on the Board of Directors' recommendation. On the other hand, an interim dividend is declared by the Board of Directors between two Annual General Meetings, as authorized by the company's Articles of Association. A special dividend, however, is distributed based on the firm's unique intentions. It is typically non-recurring and relatively infrequent compared to regular dividends (Interim or Final).

One particular stock that has caught the attention of investors is ICRA Ltd. Established in 1991, ICRA Ltd was founded by prominent financial and investment institutions, commercial banks, and financial services companies as an independent and professional investment information and credit rating agency. Today, it operates as a subsidiary of Moody's Investors.

For the financial year ended March 31, 2023, ICRA Ltd reported a YoY revenue growth of 18 per cent to reach Rs 403.2 crore from operations. Profit before tax also witnessed a significant increase of 19 per cent YoY, amounting to Rs 181.2 crore. Furthermore, the company's profit after tax showed an impressive jump of 20 per cent YoY, reaching Rs 136.7 crore. In Q4FY23 alone, the profit after tax grew by 15 per cent YoY to Rs 38.6 crore. This outstanding performance reflects renewed economic confidence and the fruition of strategic initiatives implemented over the past few quarters.

While the Q4FY23 results thrilled market participants, the announcement of a special dividend left them utterly amazed. ICRA Ltd declared a special dividend of Rs 90 per equity share, translating to a staggering 900 per cent dividend on a face value of Rs 10. But the good news doesn't end there. The board of directors has also recommended a final dividend of Rs 40 per share, which amounts to 400 per cent on the face value of Rs 10. If approved at the upcoming Annual General Meeting, the total dividend for the financial year ended March 31, 2023, will be paid through dividend warrants dispatched on or before Friday, August 25, 2023.

ICRA's share price has witnessed a remarkable upside over the past three years, soaring by 94.31 per cent. In the last year alone, the stock has advanced by an impressive 18.50 per cent.

Now the question arises: Would you consider investing in this stock based on the special dividend announcement? We invite you to share your thoughts in the comment section below.