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  • Jun 21, 2022 - 3 Indian Companies Which Have Announced Big Dividend Payouts in 2022

3 Indian Companies Which Have Announced Big Dividend Payouts in 2022

Jun 21, 2022

A quote often glorified in dividend investing is earnings are human, dividends are divine.

What this means is dividends are real cash in the investor's hands. People get a sense of relief when they receive the extra money in the form of dividends.

I've heard stories where people elaborate how they pay off their monthly expenses from the dividends they receive.

Isn't that great? Tens of thousands of rupees received in the form of dividends to pay off your bills!

While dividend investing is an evergreen strategy in the stock markets and will continue to prevail in the years to come, it is more so relevant in the current environment where uncertainty is ruling the stock market.

There's no one single factor, which is driving uncertainty, but more and more troubles which are piling up. Recession is the talk of the town.

To stay ahead of all this, you need to shift your focus on dividend stocks.

Last month, we did a piece on companies which have announced the biggest dividend payouts so far.

These companies included dividend paymasters such as Sanofi, Hindustan Unilever (HUL), Britannia, Bajaj Auto, Asian Paints, and TCS.

Since then, a few companies have declared big dividend payouts. In this article, we will look at them.

Interestingly, these three companies have consistently increased their dividend payout ratio for the past five years.

Let's get started...

#1 Power Grid Corporation

The first stock on our list is public sector enterprise Power Grid Corporation of India.

Power Grid was formed in 1992 and is one of the largest public-sector undertakings (PSUs). From humble beginnings, it has grown at an extraordinary pace to quench India's power thirst.

The company operates under the Ministry of Power and acts as a connecting factor between power-generating companies, like NTPC, and power-trading companies by carrying electricity through its nationwide grid network.

Power Grid is India's largest power transmission company with a market share of over 36%. When it comes to getting renewable energy to the home of every Indian, it has a pivotal role to play in the coming decades.

Along with having a monopoly status, the company has rewarded its shareholders with hefty dividends over the years.

Have a look at the company's dividend history for the past few years.

Power Grid Dividend History

Year End/Source Date Dividend Amount (Rs m) Dividend (%) Dividend per Share(Rs)
01-Feb-2022   55.00 5.50
10-Dec-2021   40.00 4.00
31-Mar-2021 47,084 120.00 12.00
31-Mar-2020 31,180 100.00 10.00
31-Mar-2019 30,500 83.30 8.33
31-Mar-2018 12,817 52.50 5.25
31-Mar-2017 5,232 43.50 4.35
31-Mar-2016 4,185 23.10 2.31
Data Source: Ace Equity

For the year 2022, the company declared two interim dividends in December 2021 and February 2022 worth Rs 4 per share and 5.5 per share, respectively.

In December 2021, Power Grid also announced a special dividend of Rs 3 per share.

In addition to this, the company has announced a final dividend of Rs 2.25 per share or 22.50%.

If we combine all this, it amounts to Rs 14.75 per share. At today's price of Rs 210, this results in a yield of almost 7%.

To know more, check out Power Grid's dividend payout history.

#2 Birlasoft

Next on our list is software and consulting firm Birlasoft.

Birlasoft is engaged in computer programming, consultancy, and related activities. It provides software development and IT consulting to its customers predominantly in banking, financial services, and insurance services.

It has a reputed client base and strategic alliances with various business partners including with Microsoft, Oracle, JD Edwards, SAP, Infor, AWS, Google, Salesforce, etc.

As IT stocks have fallen this year, Birlasoft was no exception. Shares of the company fell hard this year and are trading near their 52-week low.

Although investors in the company would be disappointed with the recent performance, they will sigh in relief as the company has consistently paid dividends.

Birlasoft Dividend Payout Over the Years

Year End/Source Date Dividend % Dividend Yield % Dividend per Share(Rs)
31-Mar-2021 175.00 1.38 3.50
31-Mar-2020 100.00 3.25 2.00
31-Mar-2019 100.00 2.04 2.00
31-Mar-2018 120.00 1.11 2.40
31-Mar-2017 110.00 1.70 2.20
31-Mar-2016 110.00 1.49 2.20
31-Mar-2015 55.00 0.58 1.10
Data Source: Ace Equity

For this year, the company already declared and paid an interim dividend of Rs 1.5 per share in November 2021.

In addition to this, Birlasoft has recommended a final dividend of Rs 3 per equity share, subject to declaration of the board members.

Now here's the cheery on top of the sundae. The company has announced buyback of shares where it will buy shares at a hefty premium.

The company will buy back up to 7.8 m shares at a price of Rs 500. It currently trades at Rs 330. That's a 52% premium!

To know more, check out Birlasoft's financial factsheet and its latest quarterly results.

#3 VST Industries

When you think of a tobacco stock which has consistently paid dividends and rewarded shareholders, ITC is the first choice, hands down.

But did you know there's another cigarettes & tobacco company which has consistently rewarded shareholders?

VST Industries Ltd was incorporated in 1930 under the name Vazir Sultan Tobacco Company.

The company's principal activities are manufacture and sale of cigarettes and unmanufactured tobacco.

It has expertise in all varieties of tobacco. Its R&D efforts include developing quality blends with innovative filter variants for new brands. Its growth efforts include both expansion in geographical areas and new brands.

Speaking of dividends, VST Industries has a rich and long history, having paid consistent and increasing dividends since 1997.

Look at the table below.

VST Industries' Rich History of Paying Dividends

Year End/Source Date Dividend % Dividend Yield % Dividend per Share (Rs)
31-Mar-2021 1140.00 3.36 114.00
31-Mar-2020 1030.00 3.70 103.00
31-Mar-2019 950.00 2.73 95.00
31-Mar-2018 775.00 2.66 77.50
31-Mar-2017 750.00 2.60 75.00
31-Mar-2016 700.00 4.32 70.00
31-Mar-2015 700.00 4.36 70.00
31-Mar-2014 700.00 4.25 70.00
31-Mar-2013 625.00 4.15 62.50
31-Mar-2012 650.00 4.46 65.00
31-Mar-2011 450.00 7.03 45.00
31-Mar-2010 300.00 5.75 30.00
31-Mar-2009 300.00 13.33 30.00
31-Mar-2008 200.00 6.47 20.00
31-Mar-2007 200.00 6.06 20.00
31-Mar-2006 125.00 2.60 12.50
31-Mar-2005 125.00 5.41 12.50
31-Mar-2004 60.00 2.97 6.00
31-Mar-2003 55.00 6.21 5.50
31-Mar-2002 45.00 2.97 4.50
31-Mar-2001 25.00 2.28 2.50
31-Mar-2000 10.00 1.49 1.00
31-Mar-1998 10.00 1.05 1.00
31-Mar-1997 10.00 1.11 1.00
Data Source: Ace Equity

For the year ended March 2022, the company has declared a dividend of Rs 140 per share. This is the highest dividend declared by the company.

The book closure and record date for the same is 15 July 2022 and 29 July 2022, respectively.

Did you know that ace investor Radhakishan Damani holds stake a substantial stake in VST Industries?

According to the March 2022 shareholding of VST Industries, the billionaire investor through his firms and his own account, holds 32.3% stake.

While the company has good fundamentals to boast, it has underperformed due to ESG concerns.

Dividend Stocks on Equitymaster's Stock Screener

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It's a powerful and flexible tool which allows you to run your own custom queries.

Here are the dividend screens that should help you get started in the world of dividend investing.

Equitymaster's smallcap guru, Richa Agarwal, recently recorded a video exploring the concept of dividend investing.

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...

Yash Vora

Yash Vora is a financial writer with the Microcap Millionaires team at Equitymaster. He has followed the stock markets right from his early college days. So, Yash has a keen eye for the big market movers. His clear and crisp writeups offer sharp insights on market moving stocks, fund flows, economic data and IPOs. When not looking at stocks, Yash loves a game of table tennis or chess.

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