When discussing wealth accumulation and secure savings, mutual funds often take center stage as a reliable choice for investors. Among the pioneers in this space, UTI Mutual Fund stands out as the creator of India’s first equity mutual fund. Managed by UTI Asset Management Company (AMC), this firm offers an extensive array of mutual fund options tailored for Indian investors.
UTI AMC’s Market Journey
Listed on the NSE in 2020, UTI AMC made its market debut at ₹500, compared to a final issue price of ₹554. Fast forward to 2025, and the stock has impressively surged to ₹1,074, reaching an all-time peak of ₹1,403 in December 2024.
For shareholders, the appeal lies in two main areas: the growth in stock value and the dividends received. UTI AMC has excelled in both, showcasing remarkable stock appreciation while consistently increasing its dividend payouts year over year.
Dividend Growth Over the Years
- FY2020-21: Dividend per share at ₹7
- FY2024-25: Dividend per share soared to ₹47
The growth in dividends illustrates the company’s commitment to returning value to its shareholders.
Understanding Dividend Yield
The dividend yield is a key metric reflecting the cash dividends distributed to shareholders in relation to the stock price, expressed as a percentage. Currently, UTI AMC’s dividend yield stands at 4.37%, based on a share price of ₹1,075.
Over the past three years, UTI AMC’s dividend yield has demonstrated significant growth:
- 2022: 2.79%
- 2023: 3.21%
- 2025: 4.37%
Upcoming Board Meeting
Mark your calendars for April 29, 2025, as UTI AMC’s board will convene to discuss the proposed dividend alongside the financial results for the quarter and the fiscal year ending March 31, 2025. Given the attractive yield of 4.37%, investors are keenly awaiting updates, especially considering that even major IT firms are trailing in this regard.
Comparative Dividend Yields
Here’s a quick look at how UTI AMC’s dividend yield compares with some prominent IT stocks:
| Stock Name | Dividend Yield (%) |
|---|---|
| UTI AMC | 4.37 |
| HCL Technologies | 3.80 |
| TCS | 3.60 |
| Infosys | 3.31 |
| Tech Mahindra | 2.94 |
| Oracle Financial Services | 2.79 |
UTI AMC not only leads the pack but also garners support from major public sectors like State Bank of India, Punjab National Bank, Bank of Baroda, and the Life Insurance Corporation of India. For those on the lookout for a stock with credible backing and a steadily increasing dividend yield, UTI AMC deserves a place on your watchlist.
Conclusion
With a robust history of dividend growth and strong institutional backing, UTI AMC is a notable player in the mutual fund market. Investors should consider these factors when evaluating their options for wealth creation.
Note: This article serves as informational content and should not be taken as investment advice.
For more insights into the financial landscape, consider visiting Dalal Street Investment Journal.
