
5 stocks that raised dividend payouts by over 30% in just 10 years

Summary
- These five well established companies have a long history of dividend growth. Do you own any?
Be it a bull market or bear market, one thing that keeps investors going is the regular dividend payments. Companies that pay regular dividends are usually well-established and have a loyal customer base. Sometimes, they even come with strong fundamentals and low debt.
Moreover, if the dividend payout keeps increasing, it means the profits are also increasing simultaneously.
Such companies are more stable during volatile periods and give investors a chance to protect their portfolio.
Keeping this in mind, we have shortlisted five stocks that have hiked their dividend payouts by over 30% in the last ten years.
Take a look…
#1 360 One Wam
First on the list is 360 One Wam, popularly known as IIFL Wealth Management.
The company is one of the largest private wealth management firms in India. It provides a wide range of services, including distribution, asset management, angel investments, portfolio management services, and more.
The company's assets under management (AUM) stood at ₹1,671 billion (bn) at the end of the financial year 2023.
Between 2019 and 2023, the company’s revenue has grown at a compound annual growth rate (CAGR) of 6.3%, driven by growth in assets and stable wealth relations. The net profit also grew at a CAGR of 11.9% during the same time.
With growing profits, the company’s dividend per share has grown steadily over the years.
The dividend payout and dividend yield averaged 73.3% and 3% in the last five years.
360 One Wam also has a rich history of paying dividends to its shareholders. In the last five years, it paid 12 dividends including interim and final dividends.
Given its positive free cash flows of ₹216.8 million (m), shareholders can expect dividends in the next financial year too.

The company plans to expand its presence in offshore locations by building a sales team and focusing on the UHNI category of investors.
It also has an extensive product pipeline planned for medium to long-term growth.
Going forward, its expansion plans and strong market position in wealth management will drive its growth in the medium term.
#2 Bosch
Second on the list is Bosch, an Indian subsidiary of the German company Bosch Group.
The company is a leading supplier of technology and services in mobility solutions, industrial technology, consumer goods, and energy and building technology.
As a leading Internet of Things (IoT) provider, the company offers innovative solutions for smart homes and connected mobility.
It is also developing solutions for charging and connected services for electric vehicles.
Bosch is heavily investing in Artificial Intelligence (AI) to facilitate connected living with products and solutions.
In 2017, the company founded Bosch Center for Artificial Intelligence (BCAI) to apply cutting-edge AI technology throughout Bosch products and services, resulting in innovative solutions.
So far, it has implemented over 185 AI projects across the US, India, China, Israel, and Germany.
By 2025, the company plans to either manufacture all its products with AI or all its products will use AI.
Bosch also plans to expand into autonomous driving to create advanced driver assistance systems (ADAS) and autonomous vehicle technologies.
Apart from being a top AI player in the market, Bosch also pays consistent dividends to its shareholders. Since 2001, it has declared 29 dividends to its shareholders.
The payout has also increased gradually over the years. The dividend payout and dividend yield averaged 58.6% and 1.3% in the last five years.
Bosch has free cashflows of ₹9.6 bn as of financial year 2023, which would help the company pay dividend even in the next financial year.
Growing revenue and profits have helped the company improve its dividend payouts.

Going forward, the company’s AI expansion plans will drive its growth in the medium term.
#3 CESC
Third on the list is CESC, the flagship company of RP-Sanjiv Goenka Group.
The company is engaged in the generation, transmission, and distribution of electricity and is a fully integrated electrical utility company.
Its power generation capacity is around 650 megawatts (MW) through thermal and renewable sources.
The company distributes power with its own generation facilities of 600 MW in Kolkata, Howrah, Hooghly, North and South 24 Parganas.
It also holds distribution licences for Greater Noida, Kota, Bharatpur and Bikaner in Rajasthan, and Malegaon in Maharashtra.
The company has long-term power purchase agreements with most of its clients on a cost-plus tariff basis, which helps the company generate enough cashflows.
This is the reason why the company pays hefty dividends to its shareholders. Since 2005 the company has paid 19 dividends to its shareholders, and not once did the dividend payout decrease.
The average dividend payout and dividend yield for the last five years are 18.7% and 1.6%, respectively.
It also has free cash flows of ₹2.7 bn, which the company can use to pay dividends in the financial year 2024.

Coming to its financials, the revenue and net profit grew at a CAGR of 6% and 4.4%, respectively, in the last five years, on account of the growing demand for power.
With the government focusing on manufacturing electric vehicles, the proposed deregulation of the power sector, and the de-licensing of distribution, CESC stands to benefit as the company has long-standing experience in power generation and distribution.
This will help the company grow its revenue and profit in the medium term.
#4 Hatsun Agro Products
Next on the list is Hatsun Agro Products.
With over five decades of presence, the company has grown to become the largest private-sector industry in the dairy sector.
It manufactures and markets milk and milk-related products such as ice cream, curd, buttermilk, paneer, and yoghurt shakes. The company also manufactures ready-to-eat pizzas, and cattle feed.
It has the largest milk procurement network of 2.7 m litres per day, which it procures directly from 0.4 m framers across 12,500 villages.
Hatsun Agro Products has paid dividends to its shareholders since 2001. The growth in revenues and profits over the years has helped the company pay dividends continuously.
In the last five years, its revenue has grown at a CAGR of 8.8% on account of growth in volumes across all its products. The net profit also grew at a CAGR of 7.6% during the same time.
As a result, the dividend payout and dividend yield have also increased substantially. The five-year average dividend payout and dividend yield are 67.7% and 0.7%, respectively.
Given the company's positive free cash flows of ₹1.5 bn for the financial year 2023, investors can expect a dividend payment even in the next financial year.
Take a look at the company’s dividend ratios in the last five years.

For the financial year 2024, the company plans to launch new products across all its brands, such as ice cream shakes, fruit-iced lollies, and new flavours of kulfis, cheesecake, pop tarts, and muffins.
It also plans to launch a new range of premium chocolates under the brand name ‘Havia’ to capture the demand in the chocolate market.
Hatsun Agro Products is also planning to enter new markets.
Going forward, its expansion plans and new product development will drive its growth in the medium term.
#5 Birlasoft
Last on the list is Birlasoft, part of the CK Birla Group.
The company is a software development and IT consulting firm that combines the power of domain, enterprise and digital technologies to reimagine business processes for customers and their ecosystem.
Its services include data analytics, cloud, blockchain, intelligent automation, business intelligence (BI), enterprise technologies, and services.
Birlasoft offers its services to customers in various industries, such as banking, financial services, insurance, energy, utilities, life sciences, and manufacturing.
Recently, the company also merged with KPIT Technologies, which helped Birlasoft create a niche in the mid-tier IT services companies.
In the last five years, the company’s revenue has grown at a CAGR of 13.4% due to strong deal wins and improved demand for IT services. The net profit also grew at a CAGR of 7.1%.
This helped the company grow its dividend payout at a CAGR of 11.9% in the last five years. The average dividend payout and dividend yield are 26.8% and 1.5%, respectively.
Birlasoft also has a rich dividend history and paid 27 dividends in the last twenty-three years.
To add to this, the company has free cashflows of ₹2.8 bn at the end of the financial year 2023, increasing the chance of dividend payment even this year.

Apart from paying consistent dividends, the company also bought back shares worth ₹3.9 bn in the financial year 2023.
Birlasoft plans to focus on delivering end-to-end services on Microsoft Azure, Microsoft 365, and Microsoft Dynamics 365 to its clients. It is planning to enter similar partnerships with major platforms such as Google to expand its service offerings.
The company is also open to mergers and acquisition opportunities that align with its strategy and enable geographical expansion.
Should you invest in stocks with growing dividends?
A company pays dividends to its shareholders from its profits. An increasing dividend indicates rising profits.
Dividend-paying companies are usually well-established and have a good market reputation.
Moreover, a company's dividend policy stands as a testament to its confidence in future earnings growth and the sustainability of its business.
Although dividend stocks outperform non-dividend stocks in a bear market and are a great source of passive income, judging a stock purely based on the dividend payment is risky.
It is important to study the financial statements of a company, its reputation in the market, the experience of the top management, and finally, the dividend history before considering a stock for investment.
Regular dividend payments can make a stock very attractive, but it is best to follow the old 'buy and hold' policy and invest in stocks for the long term to avoid short-term volatility and earn high returns.
Happy investing!
Disclaimer:This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com