TCS Dividend Yield: Q2 FY27 Dividend Amount Announcement Today, Why the Yield Has Climbed Above 5%, Dividend History From Rs 7 to Rs 12, the Yield Trap Question and What AI Means for the Payout

TCS dividend due 8 Oct with Q2 results. Trailing dividends Rs 111, yield about 5.3% at Rs 2,099. Q1 interim Rs 12. Record date 14 Oct. Stock down 35% in 2026.

Updated: 8 Oct 2026 • 10:37 am

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TCS Dividend Yield: Q2 FY27 Dividend Amount Announcement Today, Why the Yield Has Climbed Above 5%, Dividend History From Rs 7 to Rs 12, the Yield Trap Question and What AI Means for the Payout

Quick Answer

TCS dividend yield is about 5.3% on trailing dividends of Rs 111 a share and a price near Rs 2,099, and the Q2 FY27 second interim dividend amount is due today, 8 October, after market hours, with the record date already fixed as Wednesday, 14 October. The yield has risen from about 3.4% at the start of the year to above 5% mainly because the share price has fallen about 35%, not because the payout has grown, which is why some analysts call a 5% yield a sign of stock decline rather than a reason to buy. The company paid Rs 12 as the first interim dividend for FY27, Rs 11 as last year's second interim dividend and Rs 110 for FY26 including a Rs 46 special dividend, and history shows the October interim rising each year from Rs 7 in 2021. The payout is large against annualised profit of about Rs 53,400 crore, so the sustainability of the TCS dividend yield depends on how well TCS adapts to AI-led pricing pressure and returns to growth.

TCS dividend yield matters more this year because the stock is the biggest drag on the IT index and income investors have been drawn to its payout. The board will consider the second interim dividend with the Q2 results, which are due after market hours with a 7 pm earnings call.

If you hold TCS for income or are considering it for the yield, this article covers how the TCS dividend yield of 5.3% on Rs 111 is calculated, the TCS dividend history including the Rs 46 special dividend, why the 35% price fall creates a dividend yield trap risk, how it compares with Infosys, what TCS second interim dividend amount to expect, the 14 October record date and TDS tax points, the AI question and the risks.

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Table of Contents

TCS Dividend Yield: How It Is Calculated and Where It Stands

Measure	Figure	Note
Trailing dividends	Rs 111 a share	Rs 11 second interim, Rs 11 third interim, Rs 46 special, Rs 31 final and Rs 12 first interim
Yield at Rs 2,098.80	About 5.3%	Rs 111 divided by the 8 October opening price, my calculation
Yield at Rs 2,142	About 5.2%	At the intraday high on 8 October
Yield at Rs 2,084	About 5.3%	At the previous close
FY26 dividends	Rs 110 a share	Reported yield of 4.66% at the time
Yield at the start of 2026	About 3.4%	Rs 110 on a price near Rs 3,200, my estimate
Share price change in 2026	Down about 35%	The cause of the higher yield

The formula is simple: yield equals dividends over the last 12 months divided by the price, so every fall in the price lifts the TCS dividend yield even if the payout is unchanged.

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TCS Dividend Yield and Dividend History

Period	Dividend a share	Type
Q2 FY22, October 2021	Rs 7	Second interim
Q2 FY23, October 2022	Rs 8	Second interim
Q2 FY24, October 2023	Rs 9	Second interim, with a Rs 17,000 crore buyback at Rs 4,150
Q2 FY25, October 2024	Rs 10	Second interim
Q2 FY26, October 2025	Rs 11	Second interim; record date 15 October, paid 4 November
Q1 FY27, July 2026	Rs 12	First interim
Q2 FY27, 8 October 2026	To be announced	Second interim; record date 14 October

FY26 payout	Amount a share
First, second and third interim dividends	Rs 11 each, Rs 33 in total
Special dividend with the third interim	Rs 46
Final dividend	Rs 31
Total for the year	Rs 110

The October interim has risen by Rs 1 every year since 2021, and the Rs 12 first interim dividend this year suggests a step up, but the Rs 46 special dividend in FY26 was a one-off that inflates the trailing TCS dividend yield.

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Why a 5% TCS Dividend Yield Is a Possible Dividend Yield Trap

A yield rises when the price falls, and TCS is down about 35% in 2026, so most of the gain from 3.4% to above 5% is a price effect.
The trailing figure includes a Rs 46 special dividend, which may not repeat, so the underlying yield without it is about 3.1%, my calculation on Rs 65 of regular payouts.
The payout is large: Rs 111 a share on about 362 crore shares is about Rs 40,000 crore, or roughly 75% of annualised Q1 profit, my approximate calculation.
Revenue growth is flat sequentially and margins are under pressure from wages and AI-led pricing, so dividends may have less room to grow.
A falling price can erase the dividend: at a yield of 5.3%, a 10% fall in the price costs about twice the annual dividend.

This is the logic behind the warning that a high TCS dividend yield can signal a declining stock: the market is paying less for each rupee of dividend because it doubts growth.

TCS Dividend Yield Compared With Infosys

Measure	TCS	Infosys
Price	About Rs 2,084 to Rs 2,142	About Rs 1,030
Trailing dividends	Rs 111 a share, including a Rs 46 special	Up to Rs 48 a share over 12 months, per one report
Trailing yield	About 5.3%	About 4.7%, my calculation
Last October interim	Rs 11	Rs 23
Share price change in 2026	Down about 35%	Down about 37%

Both large IT companies yield close to 5% because both prices have fallen sharply, which suggests that the TCS dividend yield and the sector's yield reflect a de-rating and not a sudden rise in generosity.

What Amount to Expect in the TCS Second Interim Dividend and TCS Dividend Yield

Scenario	Amount	Payout on 100 shares	Yield on that payout at Rs 2,100
Matches the first interim	Rs 12	Rs 1,200	About 0.57%
Raised	Rs 13	Rs 1,300	About 0.62%
Cut or held at last year's level	Rs 11	Rs 1,100	About 0.52%

The board has not announced the amount, and these are illustrations and not predictions. History points to an amount of at least Rs 12, and the quarterly payout adds roughly 0.6% to the TCS dividend yield.

TCS Dividend Yield: Dates and Tax Points

Item	Detail
Board meeting	Thursday, 8 October 2026, with the Q2 results after market hours
Record date and ex-date	Wednesday, 14 October 2026; under T+1 the ex-date is the same day
Last day to buy for eligibility	Tuesday, 13 October 2026
Payment date	Not announced; last year it came 20 days after the record date
Tax	Dividends are taxed at your slab rate; tax is deducted at source at 10% when dividends from the company exceed Rs 10,000 in a financial year for residents
Exemption forms	The company asked for tax-exemption documents by 9 October
Physical shares	Paid only electronically, with KYC compliance required

Check the tax rules that apply to you, because the TCS dividend yield you see is before tax and the deduction can reduce the cash you receive.

AI and the Quality of the TCS Dividend Yield

Point	Detail
AI revenue	Annualised AI revenue of $2.6 billion in Q1 FY27, up 13.6% on the quarter
Pricing pressure	Kotak has cited AI-led price cuts and a soft macro for tier-one IT firms
Growth outlook	Brokerages expect about 0.5% sequential dollar growth in Q2
Margin	Operating margin of 24.0% in Q1 after a wage hit, with about 24.2% expected in Q2
People	Headcount near 594,000 and attrition of 13.6%

The TCS dividend yield is only as safe as the cash flows behind it, and the question for investors is whether AI turns into billable growth or erodes pricing faster than TCS can add volume.

Risks Behind the TCS Dividend Yield

Yield trap: A high yield can come from a falling price and not from strength.

Special dividend effect: The Rs 46 special in FY26 flatters the trailing TCS dividend yield.

Growth: Flat revenue and margin pressure can limit future payout increases and cap the TCS dividend yield.

Price risk: A fall in the stock after the results can cost more than the dividend earns.

Tax: Dividends are taxable and may attract TDS, which lowers the net TCS dividend yield.

What to Watch Next for the TCS Dividend Yield

The second interim dividend amount and the payment date announced with the results.
Revenue growth, the margin and total contract value in the Q2 numbers.
Commentary on AI revenue, pricing and the second-half outlook.
The stock's reaction on 9 October and the effect on the yield.
Whether TCS announces a special dividend or a buyback later in the year.

Conclusion

The TCS dividend yield is about 5.3% on trailing dividends of Rs 111, but the rise comes mostly from a 35% fall in the share price and a Rs 46 special dividend, and the Q2 FY27 amount is due today with a record date of 14 October. A high yield is a reason to check growth and AI, not a reason to buy on its own. Consult a SEBI-registered advisor before making any decision.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

Frequently Asked Questions

What is the TCS dividend yield?

Ans. About 5.3% on trailing dividends of Rs 111 a share and a price near Rs 2,099, my calculation.

When is the TCS second interim dividend amount announced?

Ans. Today, 8 October 2026, with the Q2 FY27 results after market hours, and the record date is 14 October.

How much was the last TCS dividend?

Ans. The last TCS dividend before this announcement was Rs 12 per share as the first interim for FY27, and last year's second interim was Rs 11, which anchors the TCS dividend yield.

Why has the TCS dividend yield risen?

Ans. Mainly because the share price has fallen about 35% in 2026, which lifts the TCS dividend yield even if dividends are unchanged.

Is a 5% TCS dividend yield a dividend yield trap?

Ans. Not automatically. Analysts warn that a high yield can reflect a declining stock, and the trailing figure includes a Rs 46 special dividend.

What is the TCS dividend history?

Ans. The TCS dividend history shows the October interim rising from Rs 7 in 2021 to Rs 11 in 2025, and FY26 totalled Rs 110 including a Rs 46 special dividend that lifts the TCS dividend yield.

What is the last day to buy TCS for the dividend?

Ans. Tuesday, 13 October 2026, since the ex-date is 14 October under T+1.

Should I buy TCS for the dividend yield?

Ans. This article does not constitute investment advice. The TCS dividend yield can fall if the price recovers or the payout is cut. Consult a SEBI-registered financial advisor.