India began a voyage towards economic and industrial liberalisation somewhat more than 25 years back that fueled a development surge unparalleled to any other in the world. This resulted in the country becoming a $3 trillion economy in 2019, and a cursory investigation of the underlying value suggests that there is yet still more to come as there are many fastest growing industries in India.
Using the parameter Dividend Payouts, we have compiled a list to recognize the fastest growing company in India.
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What Are Dividend Payouts?
Fixed-income assets are known for generating a generally consistent stream of income in the form of interest. Stocks, on the other hand, are thought to be extremely volatile and insecure.
Moreover, stocks can also give a supply of income in the form of dividends. Dividends can be paid in cash or shares and are paid out of the revenue of any fastest growing company in India.
List Of Fastest Growing Companies In India
In this post, we look at the fastest growing company in India that have paid dividends every year for the last ten years.
1- Britannia Industries
Britannia Industries is the fastest growing company in India and is well-known food manufacturing company in India.
It principally manufactures and sells fast-moving consumer goods (FMCG) commodities in areas such as biscuits, bread, cakes, dairy, and so on.
The items are delivered all across the country by a strong distribution network of 3,500 distributors that serve 2.4 million retail locations.
Since 1995, Britannia has continuously paid dividends. Previously, the corporation has paid out 26 dividends.
Biscuit sales account for 80 percent of the company’s entire revenue. As a result, it should come as no surprise that Britannia has a 28 percent share in India’s $400 billion biscuit business.
During the last five years, Britannia’s dividend payout has increased at a CAGR of 98.7%.
2- Abbott India
Abbott India is the fastest growing company in India’s pharmaceutical sector.
It is an Indian subsidiary of Abbott Laboratories, an American manufacturer of medical products and healthcare services. The firm specialises in the development and distribution of branded pharmaceuticals and nutritional supplements.
Since 1996, Abbot has paid dividends to its stockholders 25 times.
The company sells 600 pharmaceutical items to address chronic ailments like heart disease and diabetes, as well as minor health issues like the cold or flu and gastrointestinal issues.
Abbott India has more than 15 products that are industry leaders in their therapeutic areas. Digene, a treatment for gastritis and other stomach issues, is one of Abbott India’s most popular pharmaceuticals.
During the last five years, Abbott India’s dividend distribution has increased at a CAGR of 47 percent.
3- Tech Mahindra
Tech Mahindra is the fastest growing company in India and a major IT service and consulting firm.
The company, which was founded in 1986 as a strategic partnership with British Telecom, is now part of the prominent Mahindra group. Qualified professionals are this IT company’s most important resource. Tech Mahindra has 121,000 workers working in 90 offices throughout the world.
Since 2002, Tech Mahindra is paying dividends to its stockholders on a regular basis. In the fiscal year 2021, it declared its maximum dividend of 45 cents per share.
Over the previous five years, Tech Mahindra’s dividend distribution has increased at a CAGR of 37.9%.
4- Nestle India
Nestle India is the fastest growing company in India and is among the country’s leading fast-moving consumer goods (FMCG) companies. It is a Swiss multinational company Nestle AG’s Indian subsidiary, which was founded in 1956.
Nestle is a major player in the f&b industry for the FMCG industry. Nestle India’s success during the pandemic demonstrates the appeal of their products among Indians.
Nestle India has shown to be a reliable source of income for its stockholders, paying dividends each year since 1994.
The corporation issued two additional interim dividends of 110 per share and 25 per share in the fiscal year 2022.
For the past five years, Nestle India’s dividend distribution has increased at a CAGR of 26%.
5- UltraTech Cement
UltraTech Cement is the fastest growing company in India and the leading cement manufacturer. Grey cement, white cement, and fully prepared concrete are among the company’s products.
It is the 3rd leading producer of concrete products, powered by the Aditya Birla group. It’s also the only enterprise in the world with a manufacturing capacity of more than 100 million tonnes per year in a single nation.
The overall capacity of the corporation is split among 22 manufacturing units around the country. A powerful supply chain of 1 lakh sales channels and 2,500 dedicated brand shops market the company and its products.
Since 2004, the corporation’s dividend payout has risen in lockstep with its stock price.
During the last five years, UltraTech’s dividend distribution has increased at a CAGR of 31.2 percent.
6- Dr Lal Pathlabs
Dr Lal Pathlabs is the fastest growing company in India’s diagnostic healthcare sector. It is among the country’s major diagnostic companies, with over 200 clinical laboratories.
Dr Lal Pathlabs offers pick-up facilities at more than 7,000 locations. Dr Lal Pathlabs can do 9,000 tests each day, and is the most in India, thanks to more than 3,000 patient care facilities.
Since 2011, Dr Lal Pathlabs has paid a dividend to its stockholders ten times. In the fiscal year 2021, the firm paid its highest-ever dividend of $20 per share.
The corporation paid an additional interim dividend of $6 per share in the fiscal year 2022.
During the last five years, Dr Lal Pathlabs’ dividend distribution has increased at a CAGR of 46.1 percent.
What Are The Benefits Of Investing In Dividend Stocks?
When a fastest growing company in India distributes dividends on a regular basis, it usually indicates that it has solid cash flows and good corporate governance. For investment, such businesses are a treasure trove.
Investment in any of the fastest growing companies in India provides an investor with a stable flow of revenue in addition to capital growth. In instances of stock market downturns, consistent dividends may also assist an investor to prevent panic and minimizing losses.