An investment strategy with less risk may be to invest in companies that have low debt levels and consistent payout dividends. Such firms with low debt are not at risk of defaults or issues with cash flows. In addition, dividends being paid out consistently suggests that the profits earned are ample and there is a positive sentiment towards the firm’s shareholders.
In this article, we will look at some companies that fulfill both of these conditions.
Life Insurance Corporation of India Ltd.
Life Insurance Corporation (LIC) is the largest insurance provider company in India. It has a market share of 58.87%. The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.
With a market cap of Rs 4,89,998 crores. It made a 52-week high of Rs 1,222 per share, down by 36 percent, from its CMP of Rs 777.25. The company has a debt-to-equity ratio of 0.00. It has a dividend yield of 1.30 percent.
The company declared a final dividend of Rs 6 on 19 July 2024 as its record date. LIC has been declaring dividends since 2022, starting with a dividend of Rs 1.5 as per the BSE website.
Nestle India Ltd.
Nestlé India Limited manufactures and sells food products in India and internationally. It provides milk and nutrition products, yogurt, maternal and infant formula, baby food, and health care nutrition products; powdered and liquid beverages comprising instant coffee and tea, as well as ready-to-drink beverages.
It also provides readymade items such as noodles, sauces, seasonings, pasta, cereals, and pet foods and confectionery products consisting of bar countlines, tablets, and sugar confectionery products.
With a market cap of Rs 2,11,150 crores. It made a 52-week high of Rs 2,778 per share, down by 21 percent, from its CMP of Rs 2,189. The company has a debt-to-equity ratio of 0.09. It has a dividend yield of 0.78 percent.
The company recently declared an interim dividend of Rs 14.25 on 07 February 2025 as its record date. The company has been declaring dividends since 2002, starting with a dividend of Rs 10 as per the BSE website.
Colgate Palmolive Ltd.
Colgate-Palmolive India Ltd is engaged in the manufacturing/trading of toothpaste, toothpowder, toothbrushes, mouthwash, and personal care products.
With a market cap of Rs 64,875 crores. It made a 52-week high of Rs 3,890 per share, down by 38 percent, from its CMP of Rs 2,398. The company has a debt-to-equity ratio of 0.04. It has a dividend yield of 2 percent.
The company declared an interim dividend of Rs 24 on 04 November 2024 as its record date. Colgate-Palmolive (India) Ltd began declaring dividends in 2001, starting with a dividend of Rs 8.25 as per the BSE website.
Procter & Gamble Hygiene and Health Care Ltd
Procter & Gamble Hygiene and Health Care Limited is engaged in the manufacturing and selling of branded packaged fast-moving consumer goods in the femcare and healthcare businesses. Its portfolio includes WHISPER – India’s leading Feminine Hygiene brand, and VICKS – India’s No. 1 healthcare brand, and Old Spice
With a market cap of Rs 43,984 crores. It made a 52-week high of Rs 17,745 per share, down by 23 percent, from its CMP of Rs 13,513.75. The company has a debt-to-equity ratio of 0.00. It has a dividend yield of 1.43 percent.
The company recently declared an interim dividend of Rs 110 on 20 February 2025 as its record date. The company began declaring dividends in 2000, starting with an interim dividend of Rs 2.5 as per the BSE website.
Written by Satyajeet Mukherjee
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