India's Best Dividend Paying Stocks over the years

There is two ways of earning from the stocks: Dividend and Capital appreciation. Dividends are not that exciting as capital appreciation because people have have a fixed perception that dividend amount is too small. However, there are companies which pay dividend as high as 2000 % (Disa India is one such example which gave away 2000% last year)

However there are two kinds of companies which pay higher dividends, one is companies see their growth better in future and are sure of cash flows and hence offer higher dividends. other are the companies which does not have no growth plan give away the money back to shareholder. which would result in capital erosion.

Now The List :

1 Abbott India :: (CMP Rs 529.70)

Abbott India is into pharmacy and is a part of global Abbott Lab.Well known Products of this company are Brufen and Digene. It has been very consistently paying dividend from last 10 Years. Last year their payout was 17.50Rs per share(Face value 10 Rs). But this year you will not get the dividend as the financial year would end in November.However Abbott last year did a buy back of equity share at Rs 650 and reduced its equity capital from 15.28 Cr to 14.47 Cr. this year again it is planning to buy back shares and set aside Rs.51.84 Cr. This company is cash rich lquid investment is at Rs150 Cr and market capital is at Rs 744 Cr.In the frist three month of '08 its net profit grew to 14 % to Rs 68.43 Cr, with reduction in equity capital The EPS is growing at healthy rate, With equity capital coming down this company may payout higher dividend. At present it is at historic P/E of 10.86. This is a debt free company hence expecting greater capital appreciation . It is a Must Have in your portfolio.

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