Biggest Dividend Payouts Announced so far this Year...

It is rightly said that earnings are human, but dividends are divine.

This is because dividends are real cash in the hands of investors. The right portfolio of dividend paying stocks can become an excellent source of secondary income.

Imagine paying your household expenses, electricity bills, and more via the passive income generated from dividends.

In the current volatile market, with portfolio returns gyrating all over the place, dividends become a respite for investors to fall back on.

Back in February 2022, we wrote an article on the top dividend paying stocks you should watch out for.

Now that companies have started announcing dividends, here's a list of stocks with the highest dividend payout ratio so far in 2022.

#1 Sanofi India

Sanofi India is a pharmaceutical company engaged in the manufacturing of branded generics.

The key therapeutic areas the company manufacturers drugs are diabetes, cardiology, anti-infectives, allergy, epilepsy, and supplements.

It has a diversified product portfolio with leading brands such as Allegra, Combiflam, and Lantus.

Sanofi India has a pan India presence with a strong distribution network of 2,500 distributors and a presence in over 100 thousand pharmacies.

It also exports its products to over 50 countries, including the United Kingdom, Russia, Germany, and Australia.

Being a debt-free company, it has fewer outside obligations. Hence it uses its rich cash reserves to pay handsome dividends to its shareholders.

In financial year 2022, its dividend payout ratio is 108.8%.

The company has also been paying dividends consistently for the last 15 years. Its five-year average dividend payout is 118%, and the five-year dividend yield is around 3.9%.

In the recent quarterly results, though the company's revenue slightly declined, the net profit grew by 63.4% year-on-year (YoY) on account of improvement in operating efficiency.

The net profit margin also improved to 33.7% from 20.1% a year ago.

Going forward, the company's expansion plans are expected to drive growth.

For more, check out Sanofi India's financial factsheet.

Sanofi India Dividend History - Last 5 Years

Year	Dividend/Share
2017-2018	71
2018-2019	84
2019-2020	348.99
2020-2021	364.99
2021-2022	489.99

Source: Equitymaster

#2 Hindustan Unilever (HUL)

Hindustan Unilever (HUL) is one of India's largest consumer goods businesses.

The company has a diversified product portfolio ranging across the beauty and personal care segment, home care segment, and food and refreshment segment.

It has market leadership across various segments, including skincare, hair care, household care, and food products with brands such as Dove, Vaseline, Surf Excel, Domex, Kwality Walls, and Horlicks.

HUL has 31 manufacturing facilities across India. It also has a strong retail presence with products in over 8 m stores.

Being a consumer goods company, it has high cash reserves and low debt levels, which helped the company pay dividends consistently.

It has paid 33 dividends in the last 15 years. HUL's five-year average dividend payout ratio stood at 88.5%. Its five-year average dividend yield stood at 1.64%.

In financial year 2022, the company declared a dividend of Rs 34 per share which translates into a dividend payout ratio of 90.6%.

The revenue and net profit of HUL grew by 10.6% and 5.2% (YoY), respectively, in the March 2022 quarter despite an increase in inflation.

Going forward, the company plans to undertake calibrated price increases to maintain profit margins in an inflationary economy.

For more, check out HUL's financial factsheet.

Hindustan Unilever Dividend History - Last 5 Years

Year	Dividend/Share
2017-2018	20
2018-2019	22
2019-2020	25
2020-2021	40.5
2021-2022	34

Source: Equitymaster

#3 Britannia Industries

With over 100 years of legacy, Britannia Industries is one of the leading food companies in India.

Part of the Wadia Group, a reputed business house in India, the company is a market leader in the biscuit segment.

Apart from biscuits, its product portfolio also consists of breads and dairy products.

Some of its well-known brands include Good Day, Milk Bikis, Tiger, Marie, and Nutrichoice.

Britannia is a household name with a pan-India presence. Its products are available in over 5 m retail stores.

The company also exports its products to over 80 countries, with market leadership in several countries.

Britannia has consistently paid dividends to its shareholders for the last 15 years. Its dividend payout has also been in an uptrend, despite having minor debt obligations.

The company's five-year average dividend payout and five-year average dividend yield stood at 68.4% and 1.5%, respectively.

In the recent quarterly results, Britannia's revenue grew by 12.8% YoY, led by growth in realisations. The net profit also grew by 5.2% YoY.

The company is expanding its capacity across all product categories by setting up a mega plant in Maharashtra. Increased capacities will drive revenue growth in the long term.

For more, check out Britannia's financial factsheet.

Britannia Industries Dividend History - Last 5 Years

Year	Dividend/Share
2017-2018	6.23
2018-2019	14.97
2019-2020	34.94
2020-2021	169.72
2021-2022	56.5

Source: Equitymaster

#4 Bajaj Auto

Bajaj Auto is the world's largest manufacturer of three-wheeler vehicles and the fourth largest manufacturer of two-wheeler vehicles globally.

The company is present across various segments, including mileage, sports, super sports, and scoter segment, with its brands such as Chetak, Pulsar, Dominar, Bajaj CT, and Platina.

Apart from a strong domestic presence, it also exports to 79 countries, including Latin America, the Middle East, and South East Asian countries.

Currently, Bajaj Auto has three manufacturing facilities in India with a total capacity of 6.3 m vehicles. It is also setting up another facility in Maharashtra to manufacture high-end vehicles such as KTM, Triumph, Husqvarna, and Chetak (electric vehicle).

The company is not only debt-free but also rewards its shareholders with high and consistent dividends. In the last 14 years, it has paid 18 dividends.

In the financial year 2022, its dividend payout ratio stood at 80.7%. The company's five-year average dividend payout and dividend yields are 56.7% and 3%, respectively.

In the March 2022 quarter, the revenue slightly declined due to low demand for two-wheelers amid rising inflation. However, the company's net profit grew by 10.1% and the net margin expanded by three percentage points.

Going forward, a shortage of semiconductor chips might lead to low revenue growth in the medium term. However, the company is on the lookout for alternate sources for semiconductors.

For more, check out Bajaj Auto's financial factsheet.

Bajaj Auto Dividend History - Last 5 Years

Year	Dividend/Share
2017-2018	60
2018-2019	60
2019-2020	120
2020-2021	140
2021-2022	140

Source: Equitymaster

#5 Asian Paints

Asian Paints is the largest paint manufacturer in India, with a dominant market share of over 50%.

The company has a diversified product portfolio ranging from paints, enamels, thinners, varnishes, surfacing preparation, and organic composite solvents.

It has also ventured into the home decor and interior design category with products such as bath sinks, washbasins, lightings, furnishings and furniture.

Asian Paints is the third largest paint company in Asia and the ninth-largest coatings company in the world.

In India, it has the largest market share (60%) in the decorative paints segment and a healthy market share of 20% in the automotive and industrial coatings segment.

The company has 26 manufacturing facilities across fifteen countries and serves customers in over 60 countries.

Asian Paints is known to pay dividends consistently. It has paid 32 dividends in the last 15 years.

In financial year 2022, the company's dividend payout ratio is 58.6%.

Its five-year average dividend payout ratio and dividend yields are 46.7% and 0.8%, respectively.

In the recent quarterly results, the revenue grew by 18.5% YoY, led by volume growth of the decorative paint segment. The net profit grew by 0.1% due to high input costs.

Going forward, the company's dominant market presence in the paints segment and diversification into home decor will drive the growth of the business.

For more check out the Asian Paints financial factsheet.

Asian Paints Dividend History - Last 5 Years

Year	Dividend/Share
2017-2018	8.7
2018-2019	10.5
2019-2020	12
2020-2021	17.85
2021-2022	19.15

Source: Equitymaster

#6 Tata Consultancy Services

Tata Consultancy Services (TCS), the flagship company of the prestigious Tata Group, is the leading IT services company in the country.

The company offers a wide range of services, including consulting, analytics, cyber security, automation and artificial intelligence (AI), blockchain, cloud computing, and enterprise applications.

Many industries use its services, including financial services, retail, communication, manufacturing, life science, and healthcare.

TCS has a diversified client base spread across 46 countries and is a market leader in the IT services space.

It is one of the country's largest employers and has the lowest levels of attrition in the industry.

TCS is a debt-free company and has high free cashflows. As a result, the company has been very consistent in paying dividends to its shareholders since 2007.

In the financial year 2022, its dividend payout ratio is 41.2%. The five-year average dividend payout ratio and dividend yield stood at 48.2% and 1.8%, respectively.

In the March 2022 quarter, the revenue grew at a healthy rate of 15.5% YoY, led by strong demand for IT services. The net profit also grew by 7.3% YoY.

Going forward, post-pandemic demand will continue to drive the revenue and profit of the company.

For more, check out TCS financial factsheet.

Tata Consultancy Services Dividend History - Last 5 Years

Year	Dividend/Share
2017-2018	50
2018-2019	30
2019-2020	73
2020-2021	38
2021-2022	43

Source: Equitymaster

Snapshot of top dividend paying stocks of 2022

Here's a snapshot of the top dividend paying stocks in 2022 along with its financial parameters.

Why you should invest in the highest dividend paying stocks...

Dividend paying stocks offer a source of regular income along with capital appreciation. They are an excellent source of passive income.

Companies that pay dividends consistently are more stable than those that don't. Hence, the higher the dividend payout ratio and dividend yield, the better.

However, you shouldn't just look at dividend ratios alone to pick stocks for your portfolio.

You must also check the fundamentals of the company. Look for stocks with stable revenue and profit growth, low or no debt obligations, good free cashflows and consistency in dividend payments.

Such stocks not only have good growth prospects but also reward their shareholders with good dividends.

Here are some screens for dividends on Equitymaster's stock screener:

• High Dividend Yield
• Highest Dividend Payout Stocks
• Dividend Growth Stocks

Equitymaster's smallcap guru, Richa Agarwal, recently recorded a video exploring the concept of dividend investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...