A ‘Dividend’ is usually described as a part of the company’s earnings to the shareholders and the same being determined by the Board of Directors. It may be paid out as cash or also through the route of reinvestment in additional stock.
The ratio of the total dividends paid and the total profits generated by the company, i.e., a portion of the earnings paid out as dividends, is known as the ‘Dividend Payout’ ratio of the company.
Listed below are 3 Mid-cap stocks that have a dividend payout ratio of more than 50 percent:
Bharat Forge Limited
Bharat Forge Limited is engaged in the business of ‘Metal Forging’ across different industries. It has a wide range of business units which include power, rail, automotive, etc.
As of Friday, the company’s shares closed at Rs 838, gaining around 2 percent as compared to the previous closing levels of Rs 822.85. The dividend yield of the company stands at 0.85 percent. It has a market capitalization of Rs 39,000 crores.
The company, except for FY20-21, has been able to maintain decent profits and recorded a dividend payout ratio of 62 percent during FY22-23.
ICICI Securities Limited:
Founded in 1995, ICICI Securities Limited offers a variety of services comprising areas such as retail broking, institutional broking, private wealth management, etc.
As of Friday, the company’s shares closed at Rs 527, gaining around 1.25 percent as compared to the previous closing levels of Rs 520. The dividend yield of the company stands at 4.34 percent. It has a market capitalization of Rs 17,000 crores.
The company has been successful in consistently increasing its net profits along with decent dividend payments leading to stable payout ratios. During FY22-23, the company had a dividend payout ratio of 65 percent.
Hatsun Agro Products Limited:
Hatsun Agro Products Limited is a provider of a range of dairy products applied in the areas of cooking and consumption. Some of the products in its portfolio include milk, paneer, curd, dairy whitener, and others.
As of Friday, the company’s shares closed at Rs 930, gaining around 1 percent as compared to the previous closing levels of Rs 920.35. The dividend yield of the company stands at 0.96 percent. It has a market capitalization of Rs 20,700 crores.
The company has been able to sustain its net profit numbers with a considerable amount being paid out as dividends. During FY22-23, the company had a dividend payout ratio of 78 percent.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
