Gillette India's 500 per cent dividend: An attractive opportunity; keep on your watchlist!

The company has proposed a final dividend of Rs 50 per equity share (with an ex-dividend date of November 21, 2023), representing an astounding 500 per cent final dividend payout.

Gillette India Limited, a publicly traded company specializing in grooming and oral care products, has not only delivered an impressive 18.49 per cent stock return over the past year but has also made a significant announcement that warrants attention. The company has proposed a final dividend of Rs 50 per equity share (with an ex-dividend date of November 21, 2023), representing an astounding 500 per cent final dividend payout. This extraordinary dividend distribution underscores the company's unwavering commitment to generously reward its shareholders.

What further enhances Gillette India's appeal is its exceptional track record of Return on Equity (ROE), consistently maintaining a 37 per cent ROE over the past three years. This underscores the company's capacity to generate substantial returns for its investors. Additionally, Gillette India has consistently maintained a robust dividend payout ratio, standing at an impressive 125 per cent in 2021 and 78 per cent in both 2022 and 2023. This steadfast dividend policy highlights the company's resolute dedication to delivering value to its shareholders.

The recent shareholding pattern, as of the quarter ending in June 2023, adds to the company's attractiveness. Domestic Institutional Investors (DIIs) have demonstrated their confidence in Gillette India by increasing their stake. A prominent DII, ICICI Prudential S&P BSE 500 ETF, has raised its stake from 1.38 per cent to a notable 1.72 per cent, reflecting their belief in the company's growth potential. Furthermore, the esteemed Life Insurance Corporation of India holds a substantial 5.26 per cent stake in Gillette India Limited, further cementing the company's position as an appealing investment opportunity.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.