Dividend stars: Stocks with high and consistent dividend payouts; check details

The Q4FY25 earnings season is almost getting over with a slew of announcements. The year-end results are largely accompanied by corporate announcements like bonus issues, stock splits and dividends. Out of the key announcements, dividends are the most in focus amongst long-term investors as they generate good cash returns for investors held in the long term. Many long-term investors eye on dividends for long-term appreciation and also consider it a healthy indicator of a company’s financial status.

Some companies, like TCS, CRISIL, HCL Technologies, Page Industries, Manappuram, and more have been paying dividends consistently since 2011 for more than 50 times. While some companies have maintained a high dividend yield over the long term. Companies like Vedanta Ltd, Coal India, Hindustan Zinc, Castrol India, Oil & Natural Gas Corporation and Gujarat Pipavav hold the dividend yield of over 5%.

Apart from the above, some companies have consistently increased their dividend payout ratio over the last five years. The dividend payout ratio signifies a company’s ability and willingness to pay dividends out of its profits.

Dividend payout ratio = Dividend per share/ earnings per share* 100

Vedanta

India’s leading metals and mining company, Vedanta, is engaged in the exploration and production of Zinc, lead, silver, copper and aluminium. The company is also known for its hefty dividend yield. The company has a total dividend yield of 9.7% as of today, with a dividend payout ratio of 113%. The company has been paying hefty dividends more than its profit for the past few years. Moreover, it also gets strong dividend income from Hindustan Zinc, being the majority shareholder in the company.

Tata Consultancy Services

India’s largest information technology company, TCS, has declared dividends 64 times since 2011. The company's current dividend yield stands at 1.72%, and its dividend payout ratio of 93.9%, and it holds an average dividend payout ratio of 83% for three years. The company’s profits have grown at 8% CAGR for over five years and average. The consistently high payout ratio underscores management’s commitment to shareholders' confidence in the Tata group.

Infosys

Followed by the Tata group company, Infosys, which is the second largest IT service provider in the country, also holds a good track record of high and consistent dividend payouts. The company’s current dividend payout ratio stands at 66.7%, a little higher than its three-year average of 65%. The dividend yield stands at 2.7% as of today.

Supreme Industries

Next in the list is India’s leading plastics manufacturer offering a wide range of plastic products and operating in segments like plastic piping systems, cross-laminated films, protective packaging products and more. The company has a dividend payout ratio of 45% for FY25, much higher than its 3-year average of 39%. Similarly, its profit growth has remained muted for a similar period. While its dividend yield remains low at 0.8%.

Castrol India

Leading oil and lubricant company, which manufactures and sells oil fluids for cars, motorcycles, commercial vehicles, industrial use and the energy sector. The company has a dividend yield of 4.12% as of today and has delivered a strong dividend payout ratio of 139%, much higher than its three-year average of 101%.