Top 10 Companies with Highest Dividend Payout in FY24: A Guide for Investors

As an investor, it’s essential to consider dividend payout as a crucial factor before investing in any stock. A stable cash flow and regular dividend distribution can provide a sense of security and stability in the long run. Moreover, dividend-paying companies tend to be less volatile, as the regular income from dividends helps cushion market fluctuations. In this article, we’ll take a closer look at the top 10 companies that paid the highest dividend in FY24 and explore whether they’re worth adding to your portfolio.

3M India: A Newcomer to the Dividend Scene

3M India, the Indian arm of US-based 3M Company, has made a significant impact in its first year of dividend distribution. The company announced a dividend of ₹685 per share for FY24, the highest declared by any Indian company so far. Interestingly, the maiden dividend of ₹850 from the company came in the form of a special dividend, which was later increased by another ₹100 per share, taking the total dividend per share to ₹950 for FY23. Over the last two years, 3M India has distributed a whopping ₹1,842 crore as dividend, which is twice its net profit.

Abbott India: A Consistent Performer

Drug maker Abbott India has announced its highest ever dividend of ₹410 per share for FY24, which is 73% of its full-year profit of ₹1,201 crore. The company’s net profit increased by 26.5% in FY24, while its payout also grew at a similar magnitude during the year. Abbott India has been declaring special dividends every year between FY18 and FY23 and has distributed three-fourths of its profit as dividend since FY20.

Bosch: A Dividend Track Record

Bosch has a good dividend track record, declaring decent dividends for the last five years. After distributing ₹480 last year, the company declared a dividend of ₹375 in FY24. The net profit of Bosch increased by 75% in FY24 to ₹2,491 crore, driven by better EBITDA margin and higher other income.

Page Industries: A Hidden Gem

Bengaluru-headquartered Page Industries, which owns the popular innerwear brand Jockey, features among the highest dividend payers list in the country. The company’s net profit came in at ₹569 crore, in line with FY23, while its EBITDA increased by 1.1% to ₹872 crore.

Oracle Financial Services: A Dividend Leader

When it comes to dividend distribution, Oracle Financial Services outpaces all other big information-technology names. The midcap software firm deployed ₹2,080 crore for dividend, translating to a dividend per share of ₹240. The announced dividend was the highest since 2014, when it had announced a dividend of ₹485 per share. For FY24, Oracle Financial reported a 12% growth in its topline to ₹6,373 crore, while its net profit increased by 23% to ₹2,219 crore.

MRF: A Standout among Indian Origin Companies

MRF, the country’s largest tyre manufacturer, occupies the sixth spot with a dividend per share of ₹200. However, the company is also the most quoted stock on the bourses, with shares trading at around ₹1.3 lakh per piece. During the year, the consolidated net profit of MRF more than doubled to ₹2,787 crore.

Procter & Gamble Health: A Special Dividend

Procter & Gamble Health announced a total dividend of ₹200 per share for FY24, including a special dividend of ₹150 per share. In FY23, the company had paid ₹95 per share, which has more than doubled to ₹200 in FY24.

Maharashtra Scooters: A Growing Payout

Maharashtra Scooters, owned by Bajaj Holdings Investment, declared a dividend of ₹170 per share in FY24. The company has been increasing its payout over the last four years, from ₹50 in FY21 to ₹170 in FY24.

Sanofi India: A Lower Dividend

Sanofi India declared a dividend of ₹167 per share for the calendar year 2023, which is the lowest in five years. However, the company has a history of increasing its dividend payout, with ₹570 declared in FY22 and ₹490 per share in FY21.

In conclusion, these 10 companies have demonstrated their ability to generate cash and distribute it to their shareholders. While dividend payout is just one factor to consider, it’s essential to evaluate each company’s performance and prospects before making an investment decision.

Historical Context:

The article discusses the top 10 companies with the highest dividend payout in FY24, providing insights for investors. The dividend payout is an essential factor to consider when investing in stocks, as it provides a sense of security and stability. The article highlights the importance of dividend-paying companies, which tend to be less volatile due to the regular income from dividends.

The companies mentioned in the article are a mix of Indian and international firms, including 3M India, Abbott India, Bosch, Page Industries, Oracle Financial Services, MRF, Procter & Gamble Health, Maharashtra Scooters, and Sanofi India. The article provides a snapshot of their dividend payout, net profit, and other financial metrics for FY24.

Summary in Bullet Points:

• 3M India declared the highest dividend of ₹685 per share for FY24, with a total dividend distribution of ₹1,842 crore over the last two years. • Abbott India announced its highest ever dividend of ₹410 per share for FY24, with a net profit of ₹1,201 crore and a payout of 73% of its full-year profit. • Bosch declared a dividend of ₹375 per share for FY24, with a net profit of ₹2,491 crore and a 75% increase in EBITDA margin. • Page Industries, the owner of the Jockey brand, features among the highest dividend payers list with a net profit of ₹569 crore and an EBITDA of ₹872 crore. • Oracle Financial Services outpaced other IT companies with a dividend per share of ₹240 and a net profit of ₹2,219 crore. • MRF, the country’s largest tyre manufacturer, declared a dividend of ₹200 per share for FY24, with a consolidated net profit of ₹2,787 crore. • Procter & Gamble Health announced a total dividend of ₹200 per share for FY24, including a special dividend of ₹150 per share. • Maharashtra Scooters declared a dividend of ₹170 per share in FY24, with an increasing payout over the last four years. • Sanofi India declared a dividend of ₹167 per share for FY24, the lowest in five years, but with a history of increasing its dividend payout.

Overall, the article highlights the importance of dividend payout as a factor to consider when investing in stocks and provides insights into the top 10 companies with the highest dividend payout in FY24.