Tata Sons prioritises funding new ventures over increasing dividend payouts

Tata Sons has however scaled-up dividend pay-out in the post pandemic period in line with a rise in its earnings

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Krishna Kant Mumbai
3 min read Last Updated : Oct 12 2024 | 12:33 AM IST

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Tata Sons has seen a remarkable surge in net profit in recent years, yet the group’s holding company has channelled these gains predominantly into new ventures, rather than opting for higher dividend payouts. The primary beneficiaries of the dividends remain Tata Trusts, which hold a 66 per cent stake in Tata Sons, and the Shapoorji Pallonji Group. The Trusts, in turn, use these proceeds to fund its wide array of philanthropic initiatives.

In FY24, Tata Sons distributed 4.1 per cent of its net profit as dividend to its shareholders, slightly above the 3.2 per cent payout ratio recorded