Vedanta Reduces Dividend Amid Debt Restructuring

Vedanta Limited has announced a reduction in its dividend to ₹8.50, while still maintaining a dividend yield of 7.3%. Analysts express concerns about the sustainability of future dividend payments, as the payout ratio could reach 103%, putting pressure on the company's balance sheet. S&P Global Ratings has upgraded Vedanta Resources to 'B' from 'B-', reflecting improvements in the company's capital structure following a successful debt restructuring plan. Despite the dividend cut, Vedanta continues to attract investor interest, with a consensus 'Buy' rating and a median price target of ₹520. The company has paid ₹46 per share in dividends over the past year, demonstrating its commitment to shareholder returns amid a high debt-to-equity ratio of 2.13. Overall, while Vedanta's past dividend cuts raise concerns, its growth in earnings per share and ongoing payout efforts may position it favorably for future income generation.