Hero motorcorp stock outperforms ahead of book closure for dividend

Shares of two-wheeler major Hero Motocorp rose to outperform the market ahead of its book closure, which will be effective from Saturday. The stock ended 2.7% higher at Rs 1,952.2 on BSE as some of investors bought shares to benefit from a hefty dividend announced by the company.

Many others, however, opted to square-off positions intra-day to make quick gains, anticipating some momentum in the counter ahead of the book closure, according to brokers. This was also reflected in Friday's trading pattern, with 18.6% of the traded shares actually changing hands while transactions in the remaining 81.4% shares having been squared off before end of the session on BSE.

Hero Motocorp has announced a final dividend of 35, or 1750%, for 2010-11. The total dividend for the year amounted to 105, or 5250%, which puts the dividend yield at an attractive 5.4%. The stock, in fact, emerged the winner in the 2-3-wheeler space as other leading companies like Bajaj Auto and TVS Motor ended weak on Friday.