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|
|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|
|9||GSK Consumer Healthcare||68||2340||2.91||Includes special dividend of Rs. 25|
|18||Bank of India||7||312||2.24|
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|
|ITC Limited||5||203||2.46||Bonus of 1:1 so dividend has been considered 5 instead of 10|
|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|
|ONGC||8||264||3.03||Stock split from 10 to 5 & then bonus 1:1 – original dividend was Rs. 32|
|Bajaj Auto||20||1623||1.23||Bonus 1:1|
|Sun Pharma||2.75||505||0.54||Stock split from Rs. 5 to Rs. 1|
|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|
|Kotak Bank||0.425||442||0.10||Stock split from 10 to 5, original dividend Rs. 0.85|
|Tata Power||1.2||1021||0.12||Stock split from 10 to 1 original dividend is Rs. 12|
|Asian Paints||23.5||3252||0.72||Declared on 11 June 2011|
|ACC||30.5||1011||3.02||Includes special dividend of Rs.7.50|
|Indus Ind Bank||1.8||252||0.71|
|Bosch||30||7232||0.41||This year they have declared Rs. 125 as dividends so far|
|LIC Housing Finance||3.5||216||1.62|
|Bank of India||7||312||2.24|
|GSK Consumer Healthcare||68||2340||2.91||Includes special dividend of Rs. 25|
|Aditya Birla Nuvo||5||914||0.55|
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.
21 thoughts on “Dividend yields of the top 100 shares in India”
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.
Thanks for the link Rakesh.
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?
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.
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??
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.
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…
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 ).
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?
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.
its very useful information. Great effort Manshu!
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
Very interesting and helpful post. Hero Moto is topping the list.
Just because they paid a lot of dividends in that financial year, it doesn’t appear to me that it will continue.
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 🙂
Thanks Furqan, and I’m glad to have extremely sharp readers who provide great feedback and keep this place interesting and fun 🙂
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.
Thanks Kiran – I’ll take a look at that – might make my job of searching for more dividend yielding stocks easier 🙂
Thanks for sharing the link. 🙂
Its a handy soruce of info not easily available elsewhere.
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.