In India, Hindustan Unilever, with a sales turnover of over Rs. 30,000 Cr is the largest FMCG company. The behemoth has a presence in the entire gamut of consumer goods through its portfolio of well-entrenched brands.
Also, Hindustan Unilever boasts of the largest distribution network spanning both rural and urban India.
The firm's strong profitable operations with zero reliance on debt have enabled it to generate huge amounts of cash. In the last 5 years, Hindustan Unilever, on an average, has thrown operating cash flows equivalent to nearly 12% of its annual sales turnover.
With hardly any investment spends, most of the cash has either been distributed in the form of dividends or has flown into the company's reserves.
Hindustan Unilever's dividend payment track record is remarkable.
The company has consistently paid dividends in excess of 60% of its profits for the last twenty years.
In fact, if you had bought one share of Hindustan Unilever in 1995, the dividend yield on it today would be 26%!
So had you invested a lakh of rupees in the stock in 1995, you would have earned more than Rs. 2,36,000 so far in dividends alone.
| Fiscal | Dividend per share (%) | Dividend payout ratio (%) |
|---|---|---|
| 2009 | 7.50 | 65.38 |
| 2010 | 6.50 | 67.44 |
| 2011 | 6.50 | 60.87 |
| 2012 | 7.50 | 60.23 |
| 2013 | 18.50 | 105.37 |
| 2014 | 13.00 | 72.70 |
| 2015 | 15.00 | 75.20 |
| 2016 | 16.00 | 84.81 |
No comments:
Post a Comment