Top 10 Dividend Paying Companies In India In 2019-20

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.