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Top 10 Dividend Paying Companies In India In 2019-20

Olga Robert

Usually, stocks of large-cap companies with a market capitalization of Rs 20,000 crore and over are considered dividend stocks. A majority of these companies disburse their annual profits to shareholders in the form of share buybacks, dividend or bonus shares to establish goodwill among investors in the market, after retaining a portion to reinvest in the business towards future projects.

Dividends act as regular income for investors and still preserves the corpus amount they invested in the company's equity.

Generally issued by companies that already have a strong presence in the market, here are the top large-cap stocks in India that issued the highest amount of dividend per share to its shareholders in the financial year 2019-20.

These numbers and information is from the financial records of these companies available at the stock exchanges from 1 April 2019 to 12 February 2020.

10. Honeywell Automation Ltd.

Dividend per share (in Rs) Dividend % Type of dividend Announcement date Effective date
45 450 Final 13-05-2019 01-08-2019

9. Procter and Gamble Hygiene and Health Care Ltd.

Dividend per share (in Rs) Dividend % Type of dividend Announcement date Effective date
48 480 Final 21-08-2019 19-11-2019

8. Bajaj Auto Ltd.

Dividend per share (in Rs) Dividend % Type of dividend Announcement date Effective date
60 600 Final 17-05-2019 11-07-2019

7. Tata Consultancy Services

Dividend per share (in Rs) Dividend % Type of dividend Announcement date Effective date
5 500 Interim 10-01-2020 23-01-2020
5 500 Interim 30-09-2019 17-10-2019
40 4000 Special 10-10-2019 17-10-2019
5 500 Interim 28-06-2019 16-07-2019
18 1800 Final 12-04-2019 04-06-2019
73

6. Maruti Suzuki India Ltd

Dividend per share (in Rs) Dividend % Type of dividend Announcement date Effective date
80 1600 Final 25-04-2019 14-08-2019

5. Hero Motocorp Ltd.

Dividend per share (in Rs) Dividend % Type of dividend Announcement date Effective date
65 3250 Interim 06-02-2020 17-02-2020
32 1600 Final 26-04-2019 16-07-2019
97

4. GlaxoSmithKline Consumer Healthcare Ltd.

Dividend per share (in Rs) Dividend % Type of dividend Announcement date Effective date
105 1050 Final 10-05-2019 25-07-2019

3. Bosch Ltd.

Dividend per share (in Rs) Dividend % Type of dividend Announcement date Effective date
105 1050 Final 21-05-2019 14-08-2019

2. Eicher Motors

Dividend per share (in Rs) Dividend % Type of dividend Announcement date Effective date
125 1250 Final 10-05-2019 24-07-2019

1. Nestle India

Dividend per share (in Rs) Dividend % Type of dividend Announcement date Effective date
55 550 Interim 22-11-2019 10-12-2019
180 1800 Special 02-08-2019 09-08-2019
23 230 Interim 23-07-2019 09-08-2019
23 230 Interim 16-04-2019 06-05-2019
281

Tax implication after DDT removal

The dividend distribution tax (DDT) was removed at the Union Budget 2020 to make dividends taxable at the hands of the receiver based on their income tax slabs. With this change, high dividend-paying companies will be encouraged to pay more in FY 2020-21 and those in smaller tax brackets will benefit.

Under the new income tax regime, you will also benefit from the lower tax rates.

Note that dividend payouts are not mandatory and can vary each quarter/year based on company's profits and management decisions.

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