What is ‘Dividend’?
Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. It can be issued in a number of ways, such as a cash payment, stocks, or any other form. The dividend decisions are been made by its board of directors and require shareholders’ approval.
Listed below are four Large-cap stocks with a dividend payout ratio of more than 20 percent.
TVS Motor Company Limited
TVS Motor Co Ltd is an Indian automobile manufacturing company focused on the production of two-wheeled vehicles. It principally manufactures motorcycles, scooters, mopeds, three-wheelers, and related spare parts and accessories. The company’s operating divisions are Automotive vehicles and parts, Automotive Components, Financial Services, and Others. The company generates a majority of its revenue from the Automotive vehicles and parts division.
The company has a dividend payout ratio of 23.54 percent. It paid a dividend of Rs 3.75 per share in FY21-22. Moreover, the company has a decent dividend-paying history with a dividend yield of 0.6 percent for the above-mentioned period. The company has a market capitalization of Rs 51,570 crores.
Tata Power Company Limited
Tata Power Company Limited is India’s largest private-sector power utility with an installed generation capacity of over 2785 MW. The company has a presence in all the segments of the power sector viz. generation (thermal, hydro, solar, wind, and liquid fuel), transmission, and distribution. The services offered by the company include Design and Development, Direct Marketing, Power Projects and Related Services, and Transmission and Distribution.
The company has a dividend payout ratio of 32.11 percent. It paid a dividend of Rs 1.75 per share in FY21-22. The company witnessed a drop in the dividend yield numbers in the recent financial periods with 0.73 percent reported in the period mentioned above. The company has a market capitalization of Rs 61,749 crores.
Bharti Airtel Limited
Bharti Airtel Ltd is a telecommunications company with segments including Mobile Services, and Homes Services. It generates maximum revenue from the Mobile Services India segment covering voice and data telecom services provided through wireless technology(2G / 3G / 4G) in the country. It includes the captive national long-distance networks which primarily provide connectivity to the mobile services business in India.
The company has a dividend payout ratio of 39.41 percent. The company paid a dividend of Rs 3 per share in FY21-22. It reported dividend yield numbers of 0.4 percent during the period mentioned above. The company has a market capitalization of Rs 432,468 crores.
Sun Pharmaceutical Industries Limited
Sun Pharmaceuticals Industries Ltd is India’s largest generic pharmaceutical manufacturer, and the fourth largest in the world. The company’s largest markets, making up the majority of its revenue, are the U.S. and India. The remaining portion is spread across both emerging and developed markets. In addition, the company produces and distributes name-brand formulas to specific geographies.
The company has a dividend payout ratio of a whopping 73.31 percent. The company made a dividend payment of Rs 10 per share in FY21-22. It has a decent dividend-paying history with an increasing trend as far as the numbers are concerned. The dividend yield of the company during the same period was 1.09 percent. The company has a market capitalization of Rs 236,694 crores.
Written by Amit Madnani
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