1050 per cent dividend: This dividend champion stock with high ROE is paying a hefty final dividend!
SBI Focused Equity Fund, a prominent DII, boosted its stake from 5.92 per cent to an encouraging 6.38 per cent
Procter & Gamble Hygiene and Health Care Limited, a distinguished player in the realm of fast-moving consumer goods (FMCG), has solidified its position in the femcare and healthcare sectors. Within its illustrious portfolio, the company boasts two titanic brands: WHISPER, a preeminent name in the feminine hygiene domain, and VICKS, an unrivaled leader in the healthcare arena. Notably, Old Spice also finds its place among the constellation of brands under the company's aegis.
Over the past year, the stock of Procter & Gamble Hygiene and Health Care Limited has demonstrated its mettle by delivering commendable returns, amounting to an impressive 29.5 per cent. While this achievement is noteworthy in itself, what truly commands attention is the recent announcement regarding the final dividend payout.
Before delving into this significant development, it is worth sharing a remarkable insight: Procter & Gamble Hygiene and Health Care Limited has been a steadfast beacon of consistency, having declared an astounding 29 dividends since May 12, 2000.
Turning our gaze back to the momentous announcement, the company has recommended a final dividend of Rs 105 per equity share (Ex-date November 17, 2023), premised on a face value of Rs 10. This translates to a remarkable 1050 per cent in final dividends—a testament to the company's commitment to rewarding its shareholders handsomely.
What further adds to the company's allure is its enviable track record when it comes to Return on Equity (ROE). Over the past three years, the company has consistently demonstrated an ROE of 76.2 per cent, underscoring its ability to generate substantial returns for its investors. Furthermore, the company has diligently maintained a robust dividend payout ratio, consistently standing at an impressive 112 per cent. This consistent dividend policy is indicative of the company's unwavering dedication to creating value for its shareholders.
The latest shareholding pattern, as of the quarter ended June 2023, also augurs well for the company's prospects. Notably, Domestic Institutional Investors (DIIs) have shown a vote of confidence by increasing their stake in the company. SBI Focused Equity Fund, a prominent DII, boosted its stake from 5.92 per cent to an encouraging 6.38 per cent, reflecting their belief in the company's growth trajectory. Additionally, the venerable Life Insurance Corporation of India holds a substantial 4.02 per cent stake in Procter & Gamble Hygiene and Health Care Limited, further solidifying the company's position as a compelling investment proposition.
Disclaimer: This article is for informational purposes only and not investment advice.