Dividend yields of the top 100 shares in India

by Manshu on September 5, 2011

in Investments

The volatility that the American indices saw in August brought forth a flurry of articles about great dividend stocks, and I read a number of articles about large American companies like Intel, Pfizer, Johnson & Johnson, Vodafone, Astra Zeneca, Verizon etc. that give great dividend yields.

There are several large US companies that give dividend yields in excess of 3%, and that’s quite remarkable considering the fact that the fixed deposits in American banks fetch next to nothing.

I was curious to see if there are any large Indian companies that offer such great dividend yields. I went to the BSE website, and took a look at the dividend payouts in the last financial year (April 1 2010 – March 31 2011), and the current market price to calculate the dividend yields of the 100 biggest companies in the BSE 500.

Although there aren’t many very high yielding dividend stocks there are 23 which give dividend yields in excess of 2%. Let me share that subset with you first.

S.No. Stock Dividend Paid Market Price Dividend Yield Notes
1 Hero Motors 110 2067 5.32 Interim Div on 15 April 2010 – Rs. 80 & final dividend on Sep 1 2010 Rs. 30
2 ITC Limited 5 203 2.46 Bonus of 1:1 so dividend is considered as Rs. 5 instead of Rs. 10
3 Bajaj Holdings 30 747 4.02
4 PFC 5 147 3.40
5 HPCL 12 379.55 3.16
6 ONGC 8 264 3.03 Stock split from 10 to 5 & then bonus 1:1 – original dividend was Rs. 32
7 ACC 30.5 1011 3.02 Includes special dividend of Rs.7.50
8 IOC 9.5 317 3.00
9 GSK Consumer Healthcare 68 2340 2.91 Includes special dividend of Rs. 25
10 SAIL 2.9 109 2.66
11 Oil India 34 1300 2.62
12 Tata Chem 9 355 2.54
13 PNB 22 912 2.41
14 Canara Bank 10 420 2.38
15 Union Bank 5.5 236 2.33
16 NHPC 0.55 24 2.29
17 NTPC 3.8 166.9 2.28
18 Bank of India 7 312 2.24
19 Cummins 13 614 2.12
20 BoB 15 728 2.06
21 REC Ltd 3.5 170 2.06
22 BPCL 14 682 2.05
23 Power Grid 2 99.5 2.01

As you can see I’ve tried to record special events like bonuses, splits, special dividends etc. wherever I noticed them as that makes a difference in calculating yields. This is because I’m using the current market price whereas the dividends were paid out in the last financial year, and the number of outstanding shares may be different due to these actions.

Now, here is the complete list.

Stock Dividend Paid Market Price Dividend Yield Notes
Reliance Industries 7 804 0.87
Infosys 15 2315 0.65
ITC Limited 5 203 2.46 Bonus of 1:1 so dividend has been considered 5 instead of 10
ICICI Bank 12 887 1.35
HDFC 660 0.00
L&T 12.5 1609 0.78
HDFC Bank 2.4 471 0.51 Stock split from 10 to 2, so dividend has been considered as Rs. 2.4 instead of Rs. 12
TCS 6 1021 0.59
SBI 20 1993 1.00
Bharti 1 408 0.25
ONGC 8 264 3.03 Stock split from 10 to 5 & then bonus 1:1 – original dividend was Rs. 32
M&M 9.5 766 1.24
HUL 3.5 320 1.09
Tata Steel 8 488 1.64
BHEL 17.9 1737 1.03
Axis Bank 12 1076 1.12
Tata Motors 15 755 1.99
NTPC 3.8 166.9 2.28
Coal India 0.4 386.9 0.10
Bajaj Auto 20 1623 1.23 Bonus 1:1
Jindal Steel 1.25 525.5 0.24
GAIL India 7.5 414 1.81
Sun Pharma 2.75 505 0.54 Stock split from Rs. 5 to Rs. 1
Hindalco 1.35 154 0.88
Hero Motors 110 2067 5.32 Interim Div on 15 April 2010 – Rs. 80 & final dividend on Sep 1 2010 Rs. 30
Wipro 6 334 1.80 Interim and final div of 6.00 is considered
Sterlite Industries 0.9375 133 0.70
Dr. Reddy’s 11.25 1509 0.75
Kotak Bank 0.425 442 0.10 Stock split from 10 to 5, original dividend Rs. 0.85
Nestle 21.5 4470 0.48
Tata Power 1.2 1021 0.12 Stock split from 10 to 1 original dividend is Rs. 12
Power Grid 2 99.5 2.01
Maruti 6 1081 0.56
Asian Paints 23.5 3252 0.72 Declared on 11 June 2011
Adani Enterprises 2 531 0.38
Cipla 2.8 280 1.00
Grasim Inds 30 2167 1.38
IDFC 1.5 110 1.36
PNB 22 912 2.41
BoB 15 728 2.06
Ultratech Cement 6 1114 0.54
Lupin 3 467 0.64
HCL Tech 3 397 0.76
Cairn 284 0.00
Ambuja Cem 2.6 135 1.93
BPCL 14 682 2.05
ACC 30.5 1011 3.02 Includes special dividend of Rs.7.50
Indus Ind Bank 1.8 252 0.71
Titan 1.25 210 0.60
STFC 4 672 0.60
GSK 40 2137 1.87
Sesa Goa 3.25 231 1.41
DLF 2 208 0.96
NMDC 2.15 221 0.97
Idea 100 0.00
United Spirits 2.5 893 0.28
Ranbaxy 2 478 0.42
JSW Steel 9.5 720 1.32
Mundra Ports 0.5 157 0.32
IOC 9.5 317 3.00
Siemens 5 870 0.57
Jaiprakash 0.94 61.85 1.52
Zee 2 117 1.71
Exide 1.3 147 0.88
Bosch 30 7232 0.41 This year they have declared Rs. 125 as dividends so far
Dabur 0.65 112 0.58
Yes Bank 1.5 278 0.54
SAIL 2.9 109 2.66
LIC Housing Finance 3.5 216 1.62
Colgate 5 979 0.51
Reliance Infra 7.1 451 1.57
Canara Bank 10 420 2.38
HPCL 12 379.55 3.16
Federal Bank 5 366 1.37
Rel Com 0.85 84 1.01
Cummins 13 614 2.12
Tata Chem 9 355 2.54
Bank of India 7 312 2.24
REC Ltd 3.5 170 2.06
GSK Consumer Healthcare 68 2340 2.91 Includes special dividend of Rs. 25
PFC 5 147 3.40
Adani Power 88 0.00
Crompton Greaves 0.8 150 0.53
Union Bank 5.5 236 2.33
Hindustan Zinc 1 131 0.76
Aditya Birla Nuvo 5 914 0.55
Cadila Healthcare 5 830 0.60
United Phosphorus 2 146 1.37
Reliance Capital 6.5 406 1.60
Bajaj Holdings 30 747 4.02
Container Corporation 15.5 940 1.65
Divi’s Labs 6 729 0.82
Jain Irrigation 1 174 0.57
Glenmark 0.4 323 0.12
Godrej Consumers 2 422 0.47
Reliance Power 84 0.00
Oil India 34 1300 2.62
Petronet 1.75 177 0.99
ABB 2 857 0.23
NHPC 0.55 24 2.29

This was a very time consuming exercise and I’ve tried to be as accurate as possible, however there is always a possibility of errors in compiling such data, so please let me know if you spot anything, and I’ll correct it.

I’m going to try to do a similar list for small cap stocks and see if the yields are better there, and that post will probably be up next week.

Update: Tata Motors to include the whole Rs. 15 from last financial year as Ashok has pointed out.

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{ 20 comments… read them below or add one }

Kiran September 5, 2011 at 8:34 am

You might want to take a look at http://www1.valueinvestingindia.com/ – has a whole host of other very good info apart from the dividend yields. You can filter by Marketcap.

Reply

Manshu September 5, 2011 at 9:02 am

Thanks Kiran – I’ll take a look at that – might make my job of searching for more dividend yielding stocks easier :)

Reply

Furqan September 5, 2011 at 9:41 am

Hi Kiran
Thanks for sharing the link. :)
Its a handy soruce of info not easily available elsewhere.

Reply

Rohini September 6, 2011 at 9:55 pm

http://www.moneycontrol.com/india/stockmarket/topdividentstock/21/50/marketstatistics/BSE is another link where you can get these details easily. Only problem is it is grouped by industries and not by GroupA/GroupB etc.

Reply

Furqan September 5, 2011 at 9:38 am

Hi Manshu,
You indeed put in a lot of time & efforts for your readers and come out with a variety of topics. You keep us glued in :)

Reply

Manshu September 5, 2011 at 10:29 pm

Thanks Furqan, and I’m glad to have extremely sharp readers who provide great feedback and keep this place interesting and fun :)

Reply

ankm83 September 5, 2011 at 10:02 am

Very interesting and helpful post. Hero Moto is topping the list.

Reply

Manshu September 5, 2011 at 10:27 pm

Just because they paid a lot of dividends in that financial year, it doesn’t appear to me that it will continue.

Reply

Subodh September 5, 2011 at 10:08 am

its very useful information. Great effort Manshu!

Reply

Manshu September 5, 2011 at 10:25 pm

Great to hear @UnuUnc on Twitter created a Google Doc with this data and it looks like he’s adding some BSE codes as well.

Here is the link: http://bit.ly/pAPxYx

Reply

Ashok September 5, 2011 at 1:40 pm

Hello Manshu,

Thanks for the useful info !!

One correction in your data: Tata Motors has given a dividend of Rs. 20/- this year ( http://www.moneycontrol.com/company-facts/tatamotors/dividends/TM03 ) . This is pre-split ( the split is to happen on Sept 12, 2011 only ). So this is an yield of 2.65%.

Also, for a retail long-term investor interested in Tata Motors, buying the DVR stock is more useful. The DVR is currently trading at ~Rs 440/-, and thus has a dividend yield of approx 4.70 % !! The dividend given out this year was Rs. 20.50 per DVR ( 5% more than for an ordinary Tata Motors stock ).

Reply

Manshu September 5, 2011 at 10:22 pm

Hi Ashok,

Thanks for that – since I’m taking data from the last fin year I’ll take 15 bucks instead of 20, but I had split that amount incorrectly which I corrected now – thank you!

As for the DVR – I vaguely remember reading some stuff about it being deeply discounted to the real stock and concerns of manipulation….did that happens sometime or am I thinking about something else?

Thanks again!

Reply

Ashok September 6, 2011 at 8:30 am

The Tata Motors DVR is definitely at a discount of about 60-65% compared to the real stock. But I have not read any article about areas of concern for small retail investors. I guess if you are a buy and hold for a long time kind of investor, then it makes sense to buy the DVR. And the Tata Group, despite the recent bad press they have recieved on 2G, are still reputable and may not cheat the small investors.

Reply

Paresh September 5, 2011 at 5:50 pm

Dear Manshu,

I want to take this opportunity to know one thing:
In mutual funds when dividend is declared then NAV falls by same amount,is it same for stocks?
We can easily track out same in mutual funds as NAVs are on closing basis,but we can’t do it for stocks…..Suppose if tata steel cmp is 600 and it declares dividend as Rs.10 per share.If this share open gap down at 585 on dividend payout date then is dividend of Rs.10 is inclusive in this fall or not??

Reply

Manshu September 5, 2011 at 10:00 pm

Dear Paresh – yeah the same thing pretty much happens in stocks also, and the date that matters in these is the record date and the book closing date. I have a fairly extensive post on this so you can read that to get a better understanding of it.

http://www.onemint.com/2011/01/04/dividend-declaration-ex-dividend-and-record-dates/

Reply

Paresh September 5, 2011 at 10:45 pm

Thank you for the link.
I was thinking in the same way before I come across an article written by Mr.Shanbag in DNA.Article was about dividends in mutual funds and he explained that dividends in mutual funds are return of capital and not return on capital.In the same article,he mentioned that its unlike dividends declared in stocks where dividends do not impact prices any way…since then i was in confusion…so I asked here today…

Reply

kabir September 7, 2011 at 11:46 pm

American companies seem to offer a better deal to their investors as compared to Indian companies on the basis of the dividend yields… could our market be overpriced?

Reply

Manshu September 11, 2011 at 5:14 am

I think a large part of that is that some of these companies don’t have spectacular growth rates, and maybe don’t have so much use for the cash that they have. I mean they don’t have very capital intensive needs now, and have solid cash cow businesses that give them a steady cash flow which they are then able to share with their shareholders.

On the other hand, almost all Indian companies always have some large project or the other going on or in the pipeline.

That’s just my guess on why there is this difference.

Reply

Rakesh November 21, 2011 at 11:11 am

Link has changed to http://www.valueinvestingindia.com . The dividend stock screen is a pretty good screen as it has ROCE or ROC column. Sort on ROC column, and you will see all the good div companies.

Reply

Manshu November 21, 2011 at 11:40 pm

Thanks for the link Rakesh.

Reply

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