6.5%: Annual rise in combined dividend payout in the 2019-20
financial year by India’s top listed companies that are part of the BSE500 index.

Business Standard
9th July

6.5%: Annual rise in combined dividend payout in the 2019-20 financial year by India’s top listed companies that are part of the BSE500 index.

  • These companies’ combined dividend payout for FY20 stood at Rs 1.91 trillion, against 1.79 trillion for FY19.
  • The surge in dividend payouts — in spite of weak markets and at least the last quarter being severely affected by the coronavirus crisis — was mainly driven by cash-rich players like Tata Consultancy Services, ITC, Hindustan Unilever, Nestle and Bajaj Auto.
  • Excluding firms in the defensive sectors — IT services, FMCG and pharmaceuticals — India Inc’s dividend payout, at Rs 1.12 trillion for FY20, was down 17.6% from Rs 1.36 trillion the previous year.
  • Traditionally large dividend payers like private-sector banks, oil & gas majors, and metal & mining companies either lowered their payouts in FY20 or skipped it.
  • Experts also attribute the higher overall dividend payout to a change in dividend law (dividend is now taxed in the hands of shareholders) and a reduction in corporation tax rate.

Disclaimer: This information is from a third party—Business Standard—offered through a tie-up to Kotak Securities customers. Click here for complete disclaimer.

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