3 Nifty 50 Cos. with ‘Fastest-Growing’ Dividends!

  • Stock Market Analysis

Most dividend investors try to look for high-yield dividend stocks to add to their portfolios. However, apart from the yield, the growth of the payout is equally important if investors are planning to add that stock for the long term.

Looking at the robust financial stability and high dividend growth, here are 3 Nifty 50 companies that have grown their dividends at the fastest pace in the last three fiscal years.

Adani Ports and Special Economic Zone Limited

As Adani Group companies are in a deep mess, owing to the Hindenburg Research report, I thought of skipping this stock. However, I would still state some facts here and it’s up to you to take your decision. Adani Ports and Special Economic Zone Ltd (NS: APSE ) has a market capitalization of INR 1,18,181 crores and develops, operates and maintains port infrastructure.

Although the dividend yield of the company is not very high, at 0.89% and that too after an unprecedented selling spree being witnessed in the recent past, the dividend growth has been impressive. The company paid a dividend of INR 0.2 per share in FY19 which jumped to INR 5 per share in FY22, registering a growth of 192.4% (3-year CAGR). However, as you can see, the massive growth can also be attributed to a very low base in FY19. Still, INR 5 per share is the highest-ever annual dividend by the company so far.

HCL Technologies Limited

HCL Technologies Ltd (NS: HCLT ) is an IT giant, having a market capitalization of INR 2,95,804 crores and currently trades at a very healthy dividend yield of 3.85%, compared to the sector’s average of 1.78%. In fact, it is the highest dividend-paying IT company in the Nifty 50 index.

In FY19, the company shelled out INR 4 per share in dividends which jumped to INR 42 per share by the end of FY22, translating into a growth of 118.98% (3-year CAGR). It has never skipped paying dividends in over a decade and has maintained a decent payout ratio of 0.44 (last 3-fiscal average).

Wipro Limited

The last name on the list is also an IT major - Wipro Ltd (NS: WIPR ), having a market capitalization of INR 2,16,370 crores and trades at a dividend yield of 1.52%. In FY22, the company posted its highest-ever revenue of INR 81,378.9 crores due to which profits jumped enough to declare a dividend of INR 6 per share.

This might not sound much, but the same figure was a mere INR 1 per share in FY19, translating into a dividend growth of 81.71% (3-year CAGR). The stock is also trading near its 52-week low, further making it attractive for value investors.

Read More: Portfolio: Should You Buy This Blue Chip Near 'All-Time Low'?

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  • Praveen Baliwan @Praveen Baliwan
    Adani port and special economic zones had a capitalization not has 118181
    Like 0
  • mappy anand @mappy anand
    Just comparing 2 years is not enough to make comment or decision. YOY trend id atleast 4 years is required for such decision
    Like 0
    • Aayush Khanna @Aayush Khanna
      It is a 3-year comparison, not 2.
      Like 0
      Justified and we'll assayed view. Comparison should be at least for five years to judge the true potentials .
      Like 0
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