Infosys (INFY) DIvidends Date & History

Key Takeaways

• INFY pays a semi-annual dividend with a trailing 12-month payout of roughly $0.52 per American Depositary Receipt (ADR), translating to a dividend yield of about 4.3%.
• The dividend is paid twice a year, typically as an interim payment around October and a final payment in May or June.
• Infosys has raised its dividend for roughly six to seven consecutive years, with a five-year dividend growth rate in the low double digits.
• The payout ratio of about 55% to 64% of earnings, and roughly 55% to 60% of free cash flow, suggests the dividend is well covered.
• Infosys combines dividends with share buybacks, and its capital allocation policy targets returning about 85% of cumulative free cash flow to shareholders over a five-year period.

Dividend Overview

Infosys Limited, one of India's largest IT services and consulting companies, maintains a shareholder-friendly capital return policy anchored by a semi-annual dividend. The company's American Depositary Receipts trade on the New York Stock Exchange under the ticker INFY. Based on a trailing 12-month payout of approximately $0.52 per ADR, the stock currently offers a dividend yield of roughly 4.3%, which is notably higher than the average yield across the technology services sector.

Dividends are declared in Indian rupees and converted to U.S. dollars for ADR holders, meaning the dollar amount of each payment can fluctuate with foreign-exchange rates. Infosys is best characterized as a dividend growth stock with an above-average current yield, rather than a pure high-yield play. The company complements its cash dividend with periodic share buybacks, which together lift the total return to shareholders.

Dividend History and Growth

Infosys has demonstrated a consistent commitment to returning capital. The company has increased its dividend in each of roughly the last six to seven years, with the annual payout rising from around $0.29 per ADR in 2020 to about $0.52 on a trailing basis today. Over the past five years, the dividend has grown at an annualized rate in the low double digits, comfortably ahead of inflation.

The most recent payments illustrate this trend. A final dividend with an ex-dividend date of June 10, 2026, was paid on June 29, 2026, while an interim dividend with an ex-dividend date of October 27, 2025, was paid on November 12, 2025. Because Infosys declares dividends in rupees, ADR holders may see modest variations in the dollar amount of each payment from period to period, even when the underlying rupee dividend increases.

Dividend Sustainability and Payout Ratio

Infosys's dividend appears well supported by its earnings and cash generation. The company distributes roughly 55% to 64% of its net income as dividends, leaving a meaningful portion of earnings available for reinvestment, acquisitions, and buybacks. Measured against free cash flow (FCF), the cash a business generates after capital expenditures, the payout ratio stands at approximately 55% to 60%—a level generally considered sustainable.

This cash-flow discipline is reinforced by a formal capital allocation policy under which Infosys aims to return about 85% of its cumulative free cash flow to shareholders over a rolling five-year period through a combination of semi-annual dividends, special dividends, and buybacks. The company also carries a conservative balance sheet with substantial net cash, which provides additional flexibility to maintain the dividend through economic downturns or periods of softer client spending.

Dividend Compared to Industry Peers

Within the IT services and consulting industry, Infosys's dividend profile stands out as relatively attractive. Its yield of about 4.3% compares favorably with major global peers such as ACN (Accenture), which yields roughly 2.9%, and CTSH (Cognizant Technology Solutions), which yields about 2.2%. It also exceeds the roughly 3% yield offered by IBM.

Among Indian IT ADRs, WIT (Wipro) offers a higher headline yield of roughly 6.6%, but that payment is funded by a much higher payout ratio of close to 87% of earnings, making it potentially less flexible. Infosys, by contrast, delivers a competitive yield alongside a more moderate payout ratio and a stronger multi-year dividend growth record, positioning it well relative to the peer group.

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Is This Stock Attractive for Dividend Investors?

Infosys is likely to appeal most to income-oriented and dividend growth investors who value a combination of a competitive current yield and a demonstrated history of payout increases. With a yield near 4.3% and low double-digit dividend growth over recent years, the stock can serve as a source of current income as well as a hedge against inflation for long-term holders.

That said, dividend investors should consider a few nuances. Because Infosys declares dividends in Indian rupees, the U.S. dollar amount received by ADR holders can fluctuate with currency movements, and withholding taxes may apply depending on the investor's jurisdiction. The company's earnings are also tied to global corporate IT spending, which can be cyclical. For conservative income investors seeking maximum stability, the semi-annual payment schedule and currency exposure may be less convenient than a monthly or quarterly U.S. dividend payer. Overall, Infosys is best suited to long-term investors who are comfortable with these dynamics and who prioritize dividend growth alongside a solid current yield, rather than to those seeking the highest possible payout or the most predictable payment cadence.

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