After realising that I was missing IT sector in my portfolio, I started with LTIMindtree and then added Tata Consultancy Services (TCS) portfolio. There was really no research involved in selecting TCS. Not even eeny, meeny, miny, moe. Below are my key takeaways.
- I have invested 13 times in TCS in last three years, and more than 50% of that has come in last fiscal year i.e. 2022-23. So my investment is very young and I will have to wait a couple of years to see how it really performs.
- Since Apr-22, my investment in TCS has been underperforming the Nifty 50 Index. Considering the recessionary fears and layoffs in the IT sector I expect the underperformance to continue for sometime.
- TCS has paid dividends 14 times in these three years. Apparently, TCS pays dividends four times in a fiscal year. At least this has been the case since last three years. And the last dividend included a special dividend of ₹67. Yay!
Investment through the years
Returns
While I have mentioned the dividend yield at cost at each date when I received the dividends, another way to look at it is to calculate dividend yield at cost for the fiscal year against total amount invested till that fiscal year.
| Fiscal year | Dividend yield at cost |
| 2019-20 | 0.61% |
| 2020-21 | 0.93% |
| 2021-22 | 1.07% |
| 2022-23 | 2.91% |
To calculate the dividend yield at cost in the above table I use the below formula.
(Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100
Profit Percent
XIRR
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