Dividend Champion stock: This multibagger consistently delivered dividends for past two decades
To find the right dividend stock, all you need to do is to look for companies that have a history of consistent dividend payments over time. This means that companies, which have a reputation for being reliable and possess steady businesses, are likely to continue paying dividends in the future.
Dividends are the most alluring option for earnings in the stock market for the long term. Companies share portions of their profit among the shareholders. This induces investors to stay with the company. Nevertheless, dividend stocks are not only known for their high and sustainable dividends but also, for their potential to appreciate in the long term. Dividend-paying stocks can deliver fantastic long-term returns but finding the right stock is crucial to your success as an investor.
To find the right dividend stock, all you need to do is to look for companies that have a history of consistent dividend payments over time. This means that companies, which have a reputation for being reliable and possess steady businesses, are likely to continue paying dividends in the future.
Any stock can pay a dividend once and never again. However, identifying which ones will almost certainly do so again is more challenging than it sounds. The real challenge in finding great dividend stocks is separating those that stumbled temporarily from those that have shifted their business model away from dividends and will not return to that proven strategy anytime soon.
However, we have identified a stock that has a history of consistent dividend paying and the cherry on the top is that its stock price recorded a CAGR of 21 per cent in the last 10 years. On an absolute basis, the stock jumped nearly 960 per cent, which translates into being a multibagger ">Multi-bagger as it has been a 10-bagger stock.
You must be eager to know as to which stock we are talking about! It’s none other than TVS Srichakra Limited!
The company has declared a whopping 22 dividends since 2002. In the past 12 months, TVS Srichakra has declared an equity dividend, amounting to a staggering 163 per cent i.e., Rs 16.30 and the ex-date is September 2, 2022. An interesting fact is that since the year 2014, its dividend has been in excess of 100 per cent of the face value. If this doesn’t surprise you, here is another fact that will leave you spellbound. In the year 2016, the company declared two interim dividends of 300 per cent each. In the following year, it rewarded shareholders with a stellar dividend of 507 per cent i.e., Rs 50.70. Isn’t it amazing?!
Here is the complete history of dividends:
|
Announcement Date
|
Dividend Type
|
Dividend %
|
Dividend Rs
|
|
31-May-02
|
Interim
|
35
|
3.5
|
|
29-May-03
|
Final
|
35
|
3.5
|
|
31-May-04
|
Final
|
33
|
3.3
|
|
27-May-05
|
Final
|
20
|
2
|
|
06-Jun-06
|
Final
|
20
|
2
|
|
05-Jun-07
|
Final
|
25
|
2.5
|
|
02-Jun-08
|
Final
|
35
|
3.5
|
|
02-Jun-09
|
Final
|
35
|
3.5
|
|
05-Feb-10
|
Interim
|
100
|
10
|
|
30-May-11
|
Final
|
125
|
12.5
|
|
26-May-12
|
Final
|
135
|
13.5
|
|
22-May-13
|
Final
|
75
|
7.5
|
|
26-May-14
|
Final
|
160
|
16
|
|
25-May-15
|
Final
|
338
|
33.8
|
|
08-Feb-16
|
Interim
|
300
|
30
|
|
04-Mar-16
|
Interim
|
300
|
30
|
|
25-May-17
|
Final
|
507
|
50.7
|
|
22-May-18
|
Final
|
400
|
40
|
|
23-May-19
|
Final
|
400
|
40
|
|
04-Mar-20
|
Interim
|
201
|
20.1
|
|
25-May-21
|
Final
|
300
|
30
|
|
25-May-22
|
Final
|
163
|
16.3
|
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