Earn High Income from the Best Dividend Stocks in India for FY23

Top Dividend Paying Companies in FY23

Dividends are the part of a company’s profits that are given to its shareholders. Dividends can provide a regular income and a sign of a company’s financial health. However, investors need to look at other factors such as earnings growth, payout ratio, dividend history, and industry outlook.

In this blog post, we will look at some of the top dividend paying companies in India for FY23, based on their dividend announcements as of July 2023. These companies have paid out high dividends, while also doing well in their businesses. We will also discuss why they paid high dividends and what are their future plans.

TCS

TCS is the largest IT services company in India and one of the leading global players. TCS provides various services such as consulting, digital transformation, cloud computing, analytics, artificial intelligence, and cybersecurity.

TCS paid a total dividend of Rs 42,090 crore in FY23, which is 4.2% of its share price of Rs 3,150 as of July 2023. This is the highest dividend payout by any Indian company in FY23.

TCS paid high dividends because it did well in FY23, despite the Covid-19 pandemic. TCS grew its revenue by 12.5% and its net profit by 14.7% in FY23. TCS also improved its operating margin to 26.8%, which is among the best in the industry.

TCS expects to do well in FY24 and beyond, as it sees more demand for digital transformation across industries and geographies. TCS also plans to expand in new markets and deepen its presence in existing markets. TCS also plans to keep paying high dividends to its shareholders.

Vedanta

Vedanta is a diversified natural resources company with interests in oil and gas, metals and mining, power, and aluminium. Vedanta operates in India and abroad.

Vedanta paid a total dividend of Rs 37,758 crore in FY23, which is 9.4% of its share price of Rs 252 as of July 2023. This is the second highest dividend payout by any Indian company in FY23.

Vedanta paid high dividends because it did well in FY23, driven by the recovery in commodity prices and demand after the Covid-19 pandemic. Vedanta grew its revenue by 25.6% and its net profit by 88.9% in FY23. Vedanta also reduced its net debt by 35% in FY23.

Vedanta expects to do well in FY24 and beyond, as it sees more opportunities in the natural resources sector. Vedanta also plans to increase its production, reduce its debt, and enhance its shareholder value. Vedanta also plans to keep paying high dividends to its shareholders.

Hindustan Zinc

Hindustan Zinc is the largest producer of zinc and lead in India and one of the world’s largest zinc-lead miners. Hindustan Zinc operates in Rajasthan, with mines and smelters.

Hindustan Zinc paid a total dividend of Rs 31, 899 crore in FY23, which is 11. 9% of its share price of Rs 337 as of July 2023. This is the third highest dividend payout by any Indian company in FY23.

Hindustan Zinc paid high dividends because it did well in FY23, driven by the recovery in zinc and lead prices and demand after the Covid-19 pandemic. Hindustan Zinc grew its revenue by 28. 4% and its net profit by 46. 2% in FY23. Hindustan Zinc also maintained its net cash position of Rs 18, 829 crore in FY23.

Hindustan Zinc expects to do well in FY24 and beyond, as it sees more demand for zinc and lead from sectors such as infrastructure, construction, automotive, and consumer durables. Hindustan Zinc also plans to increase its production capacity to 1. 2 million tonnes by FY25, through expansion projects. Hindustan Zinc also plans to keep paying high dividends to its shareholders.

Coal India

Coal India is the largest coal producer in the world and one of the largest public sector enterprises in India. Coal India operates through its subsidiaries across India.

Coal India paid a total dividend of Rs 20,491 crore in FY23, which is 8.2% of its share price of Rs 157 as of July 2023. This is the fourth highest dividend payout by any Indian company in FY23.

Coal India paid high dividends because it did well in FY23, despite the challenges posed by the Covid-19 pandemic and the environmental concerns. Coal India grew its revenue by 6.7% and its net profit by 10.4% in FY23. Coal India also increased its cash and bank balance by 13% in FY23.

Coal India expects to do well in FY24 and beyond, as it faces competition from renewable energy sources and private players in the coal sector. Coal India also faces regulatory hurdles such as land acquisition, environmental clearance, and coal quality issues. However, Coal India also has opportunities to increase its production capacity through modernization, mechanization, and automation. Coal India also plans to keep paying high dividends to its shareholders and stakeholders.

ITC

ITC is a diversified conglomerate with interests in FMCG, hotels, paperboards and packaging, agri-businesses and IT. ITC operates in India and abroad, with brands such as Aashirvaad (staples), Sunfeast (biscuits), Bingo! (snacks), Yippee! (noodles), Classmate (stationery), Fiama (personal care), Engage (fragrances), Savlon (healthcare), Wills Lifestyle (apparel), and ITC Hotels.

ITC paid a total dividend of Rs 15,846 crore in FY23, which is 5.3% of its share price of Rs 237 as of July 2023. This is the fifth highest dividend payout by any Indian company in FY23.

ITC paid high dividends because it did well in FY23, despite the Covid-19 pandemic and the lockdowns. ITC grew its revenue by 9.8% and its net profit by 12.6% in FY23. ITC also improved its operating margin to 34.5%, which is among the best in the industry.

ITC’s growth was driven by its diversified portfolio of businesses, which helped it to mitigate the impact of the pandemic on some of its segments. ITC’s FMCG business performed well in FY23, with a revenue growth of 15.4% and a segment profit growth of 27.4%. ITC’s FMCG business benefited from its strong distribution network, innovation pipeline, and consumer loyalty. ITC’s paperboards and packaging business also grew by 11.2% in revenue and 18.7% in segment profit in FY23, supported by higher volumes and prices. ITC’s agri-business also grew by 10.3% in revenue and 16.4% in segment profit in FY23, driven by higher exports and value-added products.

ITC’s outlook for FY24 and beyond is optimistic, as it expects to leverage its strengths and opportunities in the post-pandemic scenario. ITC also aims to increase its market share, profitability, and sustainability across its businesses. ITC also plans to continue its dividend policy and reward its shareholders with high dividends.