India’s dividend-disclosure dilemma: Meaningful reform or tokenism?
1 month, 2 weeks ago

India’s dividend-disclosure dilemma: Meaningful reform or tokenism?

Live Mint  

Dividends are more than just a share of profits—they reflect a company’s commitment to shareholders and its approach to governance. While long-term optimism about India’s trajectory persists, dividend-seeking investors are left wondering: Are companies truly creating long-term value by retaining earnings, or are they simply masking inefficiencies with self-serving projects? Listed companies often justify withholding dividends by citing growth opportunities, but this raises concerns about corporate governance and the “agency problem," where managers prioritize interests other than shareholder returns. According to SAHA, an Istanbul-based corporate governance and credit rating agency, India’s corporate governance reputation is subpar—comparable to countries like Brazil, Chile, and China. At the 2024 annual general meeting of Godfrey Phillips, shareholders questioned why promoter remuneration had doubled while dividend payouts shrank, highlighting concerns about companies hoarding cash rather than distributing profits.

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History of this topic

Firms dole out large dividends amid covid
4 years, 5 months ago

Firms dole out large dividends amid covid

Live Mint  

Indian companies have doled out large dividends this fiscal to prevent public shareholders from dumping their shares amid the economic uncertainties caused by the covid-19 pandemic and lockdowns. So far this fiscal, cigarette to hotels conglomerate ITC Ltd has announced the highest dividend of ₹12,477 crore in July after its stock continued to weaken amid sluggish volumes between May and …

RBI can pay interim dividend to govt in exceptional cases: Jalan panel
5 years, 7 months ago

RBI can pay interim dividend to govt in exceptional cases: Jalan panel

Live Mint  

Mumbai: A Reserve Bank of India panel, led by former governor Bimal Jalan, has recommended that the central bank pay interim dividend to the government, a practice that started in 2016-17, only under exceptional circumstances. The Jalan committee has also recommended that RBI’s capital framework be reviewed every five years and its accounting year be aligned with the fiscal year …

Opinion | Misconceptions about an RBI special dividend
6 years, 4 months ago

Opinion | Misconceptions about an RBI special dividend

Live Mint  

A key agenda for discussion in Monday’s Reserve Bank of India board meeting will be the framework for distribution of surplus from the RBI to the government. No free lunch The reason a special dividend will not ease the government’s budgetary constraint is that in the absence of it curtailing its future borrowing programme, the RBI will be forced to …

Have Indian firms really become more generous with dividends?
8 years, 9 months ago

Have Indian firms really become more generous with dividends?

Live Mint  

Mumbai: The top 100 firms listed on BSE Ltd have become more generous with dividends over the past five years, although part of this was led by a change in the taxation policy on large dividend payouts in the budget this year. A Mint analysis of BSE 100 companies showed that the dividend payout ratio of these firms has doubled …

Govt needs to amend the Companies Act before arm-twisting state-owned cos for dividend payout
9 years, 2 months ago

Govt needs to amend the Companies Act before arm-twisting state-owned cos for dividend payout

Firstpost  

In a company, it is for the board of directors to take a call on dividend on holistic appreciation of future requirement for funds It is one thing to demand minimum tax from companies, howsoever abhorrent the idea may be to tax experts and companies, but quite another to ask them to pay minimum dividend, be it in exercise of …

Top Indian firms take on more debt to pay dividends
10 years, 9 months ago

Top Indian firms take on more debt to pay dividends

Live Mint  

Singapore: Top Indian companies are taking on more debt to pay dividends to their shareholders, analysts have warned, highlighting a trend that is weakening corporate balance sheets at a challenging time for the country’s economy. During the fiscal year ending 31 March 2013, 57 of the 500 biggest companies listed on BSE borrowed a total of ₹ 19,170 crore to …

25 percent compulsory dividend payouts will bring retail investors back to equity
11 years, 1 month ago

25 percent compulsory dividend payouts will bring retail investors back to equity

Firstpost  

Indian retail equity investors area dwindling tribe. To bring them back to equity, the first step ought to be a compulsory dividend payout ratio for profitable companies If you leave out the foreign institutional investors, the Life Insurance Corporation and a few domestic mutual funds, there is practically no equity market in India. The study throws up the interesting fact …

Cairn India stock up on hopes of dividend payout
12 years, 5 months ago

Cairn India stock up on hopes of dividend payout

Firstpost  

Cairn India has net cash of $2.4 billion, or Rs 65 per share, equaling about 20 percent of its current market capitalisation and nearly equal to its capex guidance over the next two year After rising as much as 1.5 percent, shares in Cairn India gained 0.1 percent on hopes the oil explorer will soon announce a dividend payout, and …

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