Top 20 companies pay Rs 18,000 cr dividend
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N.Sukumar
May 22, 2008, 2:15:55 AM5/22/08
to Kences1
MUMBAI: Since early January, when BSE Sensex hit a record high of over
21K mark, investors’ wealth has eroded by over Rs 17 lakh crore as the
benchmark index plunged about 19% from those lofty levels. However,
investors in a slew of leading companies have reasons to remain happy
since they have received handsome dividends.
Data on top 20 dividend paying companies show that for the financial
year ended March 2008, nearly Rs 18,000 crore have been handed over to
their shareholders. Of these, the top five PSU and private corporate
houses have distributed about Rs 9,000 crore and Rs 6,000 crore
respectively.
Since under the current tax rules, dividends are tax-free in the hands
of the receiver, market players say this is a real wealth in the hands
of investors.
Despite rising interest rates and input costs, most of the leading
corporates have declared strong quarterly and annual numbers. The
buoyancy in their performance and confident business outlook have
allowed a large number of companies to be generous with dividend
distribution, running into thousands of crores, market players said.
Among the PSUs, it is the navaratna companies which have given
handsome dividends , which in a major way filled up the government’s
coffers, other than paying its nongovernment shareholders. And among
the private companies and corporate houses, other than the traditional
frontline entities like Reliance (Mukesh Ambani and ADAG) groups,
Tatas, Birlas and ITC, the Indiabulls group stands out for its huge
payout to its shareholders.
The group’s total payout of Rs 731 crore for financial year 2007-08 is
about 60% of its full year net profit.
In a bad market, handsome dividend payouts by companies also attract
those investors who look for high dividend yield stocks. Dividend
yield is calculated as the total yearly dividend payout divided by the
current market price.
Some investors believe high dividend yield stocks would continue to
pay higher dividend during the current year as well and hence the
extra interest in the stock.
Source : Times of India
21K mark, investors’ wealth has eroded by over Rs 17 lakh crore as the
benchmark index plunged about 19% from those lofty levels. However,
investors in a slew of leading companies have reasons to remain happy
since they have received handsome dividends.
Data on top 20 dividend paying companies show that for the financial
year ended March 2008, nearly Rs 18,000 crore have been handed over to
their shareholders. Of these, the top five PSU and private corporate
houses have distributed about Rs 9,000 crore and Rs 6,000 crore
respectively.
Since under the current tax rules, dividends are tax-free in the hands
of the receiver, market players say this is a real wealth in the hands
of investors.
Despite rising interest rates and input costs, most of the leading
corporates have declared strong quarterly and annual numbers. The
buoyancy in their performance and confident business outlook have
allowed a large number of companies to be generous with dividend
distribution, running into thousands of crores, market players said.
Among the PSUs, it is the navaratna companies which have given
handsome dividends , which in a major way filled up the government’s
coffers, other than paying its nongovernment shareholders. And among
the private companies and corporate houses, other than the traditional
frontline entities like Reliance (Mukesh Ambani and ADAG) groups,
Tatas, Birlas and ITC, the Indiabulls group stands out for its huge
payout to its shareholders.
The group’s total payout of Rs 731 crore for financial year 2007-08 is
about 60% of its full year net profit.
In a bad market, handsome dividend payouts by companies also attract
those investors who look for high dividend yield stocks. Dividend
yield is calculated as the total yearly dividend payout divided by the
current market price.
Some investors believe high dividend yield stocks would continue to
pay higher dividend during the current year as well and hence the
extra interest in the stock.
Source : Times of India
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