Top 5 Dividend Stocks That Have Been Making Recurring Payments for 20+ Years

Investing in a stable dividend-paying company can let you sleep peacefully at night. The business will generate a steady passive income. The more stable the business, the higher the share of profits that can be distributed.

So, if you are someone who wants to have a fixed and relatively stable source of income while being invested in the stock market, then look no further than companies which pay dividends regularly.

In this article, we take a look at ten companies that have been making recurring payments for 20+ years.

We have shortlisted these using Equitymaster's powerful stock screener.

Take a look...

#1 CRISIL

CRISIL has been paying regular and growing dividends to shareholders for more than three decades.

The company follows a December 2023 year ending format.

For the current financial year, it has so far declared an interim dividend of Rs 7 per share.

It has a history of announcing repeat interim dividends through the year.

The dividend payout has improved since 2011. Back then, it paid out a total dividend of Rs 11 per share. Skip forward to December 2023 and the dividend per share has improved to Rs 54 per share.

The five-year average dividend payout ratio of CRISIL stands at 65.7%, with a dividend yield of 1.6%.

CRSIL is one of the leading rating agencies in India. It also provides research and risk advisory services.

The company's rating services span an entire range of debt instruments for over 8,000 companies. It has a global presence and draws most of its revenue from North America, India, and Europe.

In the past one year, CRISIL share price has rallied more than 21%.

#2 Pidilite Industries

This company's dividend payment history goes way back to the 90s.

In the past two decades, Pidilite has taken its dividend payout from Rs 1 per share to Rs 11 per share in 2024.

So far for the current financial year, it has yet to announce a dividend.

Apart from dividends, the stock has also multiplied investors' wealth. The stock of Pidilite has multiplied 11 times over the past decade.

As part of getting future ready, Pidilite is investing heavily for its next phase of growth. It is undertaking multiple capacity-building projects.

The company also plans to remain debt-free and fund its capex through internal accruals.

So far in 2024, Pidilite Industries share price has gone up by 9%.

#3 Asian Paints

Another obvious name in this list.

Asian Paints has paid regular dividends for more than 30 years.

Although the real growth in payouts has been in the past 6-7 years.

For the current financial year so far, it has declared an interim dividend of Rs 5.15 per share in November 2023.

Asian Paints was established in 1942 and stands as India's largest paint company, renowned for its wide range of products including varnishes, enamels, and lacquers.

Recent concerns over heightened competition with Grasim Industries entering the decorative paints segment with its Birla Opus range have led to a correction in the stock price.

The stock is down 19% in 2024.

However, Asian Paints has strategically diversified into non-paint businesses over the past decade, offering a comprehensive home decor solution. The stock also stands to benefit from the demand from real estate which is expected to be robust in 2024.

The company's financials have stood the test of time. Asian Paints' revenue has grown at a CAGR of 20% in the last three years while net profit has grown at a CAGR of 15%.

For more, check out the below video where Tanushree discusses Asian Paints and whether it could repeat the history of multibagger returns.

#4 ITC

A stock that's included along with other dividend paymasters, ITC has taken its dividend game to a whole another level.

In the past 4 years, it has boosted the dividend payout and looks set to pay a big dividend this year as well.

To be sure, ITC has paid out consistent dividends since 1994.

Currently, it commands a healthy dividend payout of 98%, and a dividend yield of 3%.

Starting with just cigarettes in 1910, ITC has over the years transformed itself into an umbrella group that offers a diversified / varied product mix.

From being a one-product category, ITC's portfolio now spans 20 categories with over 1,500 products.

ITC is one of a handful of enterprises in the world having traversed a 100-year journey and managed to remain contemporary, relevant and competitive.

Apart from dividend payments, the stock price has also appreciated over time.

ITC has had multiple phases of negligible returns in the past two decades. But investors who chose to stay put, grew their wealth in the stock 26 times, at a compounded annual rate (CAGR) of 17% during this period.

As things stand now, ITC is quite capable of achieving a growth of 15% per annum in earnings over the medium term.

And this combined with the dividend yield of around 3%, puts the stock in a good position to earn more than decent returns for its investors.

For more, check out our detailed research on ITC here.

#5 Deepak Nitrite

This specialty chemical company's dividend history goes back to 1998.

In 2015, the company's face value was brought down from Rs 10 to Rs 2 per share. Back then, it paid a dividend per share of Rs 1. Today, this number has shot up to Rs 7 per share.

The company is yet to declare a dividend for the current financial year.

Going by its history, the company only declared one payout as the final dividend which is due soon as the financial year comes to close.

Deepak Nitrite's dividend per share has grown at a CAGR of 30.3% in the last five years.

The five-year average dividend yield and dividend payout for Deepak Nitrite stands at 0.6% and 11.3%, respectively.

Deepak Nitrite is actively investing in acquiring companies to grow its business inorganically. It has also invested in developing new products to expand its product portfolio.

At present, the company is aiming to ramp up its production capacities to cater to the growing needs of its clients.

For this, it has invested over Rs 14 bn to acquire land parcels. Moreover, it is planning to invest Rs 40 bn to develop new products and acquire companies that are manufacturing some of its existing products.

Overall, the company is working towards improving its market share in the chemicals business.

In 2024 so far, the stock price has remained rangebound.

Some Other Stocks Paying Dividends for 20+ Years

Apart from the above, here are some more companies that have been paying regular dividends for 20+ years.

Company Name	Dividend Per Share	Dividend Pay Out (%)	Dividend Yield (%)	Current Price (Rs)
Berger Paints India Ltd.	2.7	37.5	0.7	481.3
Fluidomat Ltd.	4.5	23	0.7	607.8
KEI Industries Ltd.	3	5.7	0.1	3,839.80
Mazda Ltd.	14	21.1	1	1,423.90
Ponni Sugars (Erode) Ltd.	6.5	14.6	1.7	417.2
Rashtriya Chemicals and Fertilizers Ltd.	5.3	30.2	3.8	140.3
Supreme Industries Ltd.	26	43.2	0.6	5,371.40
Vinati Organics Ltd.	7	15.7	0.4	1,580.30
VST Industries Ltd.	150	70.8	4	3,753.30

Data Source: Equitymaster

In Conclusion

Investing in dividend-paying stocks can be a prudent strategy for many investors.

These stocks often offer stability and consistent income through dividend payments, which can be particularly attractive for those seeking regular returns or looking to supplement their investment portfolio with income.

Additionally, these companies typically have established track records, solid financials, and may be less volatile compared to their peers.

However, it's essential to conduct thorough research and consider various factors such as the company's financial health, dividend history, industry trends, and overall market conditions before making any investment decisions.

If you want to dwell deeper on dividend investing, use Equitymaster's powerful stock screener to check high dividend yield stocks and dividend growth stocks in India.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...