India Inc's dividend payout rises 26% to US$ 39.46 billion (Rs. 3.26 trillion) in 2022-23

According to a Financial Express (FE) report, India Inc. has recommended a dividend payout of US$ 39.46 billion (Rs. 3.26 trillion) for 2022-2023 based on the assumption of an expanding economy, rising profitability, and buoyant markets. This is a staggering 26% more than the almost US$ 31.47 billion (Rs. 2.6 trillion) distributed to investors the year before.

The US$ 39.46 billion (Rs. 3.26 trillion) dividend payment is made by 317 companies in the BSE 500 that have declared dividends. These companies' payout ratio has likewise climbed to 41.46% per cent in 2022-23 from 34.66 per cent in 2021-22, the report said.

IT major Tata Consultancy Services (TCS) topped the list with a total payout of US$ 5.09 billion (Rs. 42,090 crore), a 167.4% rise from that in the previous year. Mining firm Vedanta, a subsidiary of London-based Vedanta Resources, came in second with a total dividend recommendation of US$ 4.5 billion (Rs. 37,758 crore), a 126% increase from 2021-22, while Hindustan Zinc (HZL) came in third with a 319% rise to US$ 3.8 billion (Rs. 31,899 crore).

The dividend payment rise comes at a time when firms are expected to increase capital expenditures (capex) by around 14% in 2023-24, and the upward trend is expected to continue for at least another three years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.