Friday, January 31, 2014

Dividend Yield Shares

Following are companies which have consistently shared atleast 25% of their profits in the past 10 years. This is called dividend payout ratio (dividend per share / EPS *100). Though the dividend yield could vary depending on the absolute profits made and the current market price, still a stable dividend policy could be helpful in identifying 'investor-friendly' stocks.

Castrol:
-2nd largest automotive and industrial lubricants in India.
-25% market share with 3 manufacturing facilities.
-British Petro of UK holds 71% equity.
-Debt Free
-High Return on Equity (71.4%)
-Low volatality (beta) = 0.26%
-High dividend Payout ratio 87.3%
-Dividend Yield is 3.45%

Dabur:
-FMCG company with 14 brands revenue in excess of Rs.100 Cr
-Crossed US$ 1 billion turn over in Fy 2012 - thanks to inorganic growth.
-Key Brands:
Dabur (Ayurvedic),
Vatika (hair oil),
Hajmola (digestive),
Real (Fruit Juice),
Fem (skin care)

-Acquired key brands:
30 plus from ajanta pharma in 2011,
2 Turkish companies fur US $ 69 million in 2011
Namaste Labs LLC for US$ 100 million in 2010
Balsara higene and home profuts in 2005
Fem care pharma in 2008

-Dividend Payout: 36.2%
-Dividend Yield: 0.88%

Apollo Hospitals:
-Established in 1983
-Asia's largest healthcare group
-Total : 8438 beds - 51 hospitals, 1560 pharma, 92 primary and diagnostic clinics, 100 tele medicine units across 10 countries.
-Directly owns 38 hospitals with 6400 beds and 13 hospitals with 2038 beds.
In the process of establishing Reach hospitals in tier II and tier III cities.
-Plans to spend 2233.6 Cr and add 2685 beds over next 4 years.
-Dividend Payout: 27.2%
-Dividend Yield: 0.58%

ITC: Indian Tobacco company
-FMCG Company
-consiously building non-cigar portfolios
-Started :
--Life style retailing in 2000,
--Branded package foods in 2001,
--Education and stationary products in 2002,
--Personal care products in 2005,
-Consistent investment in Paper and hospitality industry.
-Dividend Payout : 59.4%
-Dividend Yield : 1.66%

-Revenue break up:
--Cigar : 40% + Agri : 24.6% + FMCG : 19.6% + Paper and packaging : 13% + Hotels : 2.8%

-Inspite of revenue breakup, 80% earnings before interest and tax from Cigar business. The cigar business is fueling the non cigar businesses.

-Hotels : 2nd largest hotel chain with 93 properties in 64 locations. 4 Brands: ITC Hotels, Welcom Hotel, Fortune, and Welcome Heritage.

IMPAL : Indian Motor Parts and Accessories
-TVS Group company
-Incorporated in 1954.
-India's largest distributor of Automobile spare parts and accessories.
-Represents 50 manufactures, catering to 35000 dealers.
-Product line: Engine group components, Brake systems, Fasteners, Radiators, Suspensions, Axles, Auto electricals, Wheels, Steering linkages, Instrument clusters.
-Also makes products for : automotive industrial seals, Banco Products, Brakes India, Eichder, Finolex Cables, Anand Automotive systems, General Motors, India Japan Lighting, Pricol, Rane and SKF bearings.
-Dividend Payout: 28.8%
-Dividend Yield: 2.36%

Ambuja Cements:
-Established in 1983
-Commenced production in 1986
-Acquired by Swiss Holcim in 2006 which holds 50% equity stake.
-"Most effective cement manufacturer in India"
-1st cement manufacturer to build captive port on the western coastline to facilitate cost effective shipments of bulk cement.
-5 integrated cement plants and 8 cement grinding units with production capacity of 27.95 million tonnes.
-Dividend Payout: 46.2%
-Dividend Yield: 2.04%

HDFC Ltd:
-Established in 1977
-Premier housing finance company : Rs.5.66 trilllion loan approval and 4.56 trillion disbursement.
-Holding companies:
22.7% equity stake in HDFC Bank.
72.4% stake in HDFC Standard Life Insurance
59.8% stake in HDFC Asset Management (Mutual Fund)
73.9% stake in HDFC Ergo General Insurance
59.3% stake in Gruh Finance
100% stake in HDFC Property ventures
80.5% stake in HDFC Venture Capital
-Dividend Payout : 38.3%
-Dividend Yield : 1.57%

Navneet Publications:
-Now called Navneet education.
-One of the few companies which weathered economic slowdown.
-Consistent rise in profit in past 10 years.
-Targets turnover of Rs.1000 Cr in FY 2015 Vs Rs.818 Cr in FY 2013.
-Core Business: Publishes books : educational, children's, general, Scholastic paper and non paper stationaries.
-Has 5000 titles in English, Gujarati, Hindi, marathi, Tamil, Urudu and othe rindian and foreign languages.
-Products sold under brands Navneet, Vikas, Gala, FfUuNn and Boss.
-Now launched supplementary books for CBSE and ICSE boards.
-Ventured into non-paper stationary products like erasers, sharpeners, rulers, compass box and art materials in 2006.
-Dividend Payout: 43.1%
-Dividend Yield : 3.14%

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