26 June 2012

Dividend History of Indian companies – 10 Years


We continue with our focus on dividends and dividend investing. Though dividend yields can attract an investor in short term, when investing for long term dividend income, it is important to look at the consistency with which the companies have paid dividends. We tried to find lists of Indian companies similar to ones offered in US Markets like Dividend Aristocrats, Dividend Champions (companies that have consistently raised dividends for last 10, 20 and 25 years). But sadly, such a list is not available in India free of cost. (Please let us know if you find one). This forced us to compile our own list of such companies (using a professional data source – MVXenius : Educational version). But, we could only manage to find data for last 10 years.

We first tabulate dividend history of stocks in our portfolio (DMP) and then move onto other known good dividend paying companies.

We have only tabulated data of stocks which have a current dividend yield of more than 2.4% and which we believe would continue paying out decent dividends in future.

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Apart from collecting 10 year dividend data, we have also calculated average annual increase in dividends doled out in last 5 years (2nd last column).  Though ONGC is India’s largest dividend payer in absolute terms, it should be noted that it has not increased its dividend substantially in last 5 years (only 3.17%). On other hand, smaller companies like Balmer Lawrie, Clariant Chemicals (I) Ltd., Graphite India have shown amazing consistency and above average dividend growth rates (24%, 48% and 33%). But unlike ONGC, NTPC & Tata Investments Corporation, a few large caps like Bank of Baroda and BHEL have increased their dividend by an average of 28.5% & 35% respectively. You can read more about dividend policies of these companies in our previous post.

Apart from stocks in DMP, we also collected 10 year dividend data of a few other large companies. The data is tabulated in table below.

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Though we have tried our best and adjusted dividends for bonuses and splits, we do not claim that this is an accurate list. The purpose of these lists is to share the information we collected for our personal use. At your own risk, you are free to use this in any form you may want.

Dead Monk’s Disclaimer - No matter how careful we are, as an investor, we will never be able to eliminate the risk of being wrong.

PS - Morgan Stanley recently came out with an interesting list of Dependable Indian companies. We loved reading it as it voiced our opinion J that large cap stable companies are good for long term investing.  
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8 comments:

  1. Great article, after quite some time. Thanks for the effort on research, gives a head-start to our own research.
    Like you said, there's no free software available that gives these data. You can checkout, www.morningstar.in for decent information. Ace Equity is a paid service that Vishal uses for research, claims to be excellent.

    ReplyDelete
  2. @Mans
    Thanks for the info on morningstar Mans.

    ReplyDelete
  3. Dividend income provides a stable source of income that can partially offset market price depreciation during down markets.

    Singapore dividends

    ReplyDelete
  4. @SGX Dividends
    We second that :-)

    ReplyDelete
  5. Thanks. Good stuff. May I suggest to quote the dividends as dividend yield as it may help in comparing better. Thanks again.

    ReplyDelete
  6. @ae3e08eb3f66b27b81dc69e135e58875:disqus

    We will take care of this in future posts. :-)

    ReplyDelete
  7. Cool! I love your site. Very well done. Thanks for organizing everything to where I can find it easier. Keep up the good work! I love it!
    Profit
    http://www.sanasecurities.com

    ReplyDelete
  8. @google-ad1ae1849d0a57b2008cd8e206b28fc1:disqus

    Thanks :)

    ReplyDelete

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