Introduction
Nestlé India Limited, a leading name in the fast-moving consumer goods (FMCG) sector, has consistently rewarded its shareholders through regular dividend declarations. As a subsidiary of the global food and beverage giant Nestlé S.A., the company is known for its strong financial performance and long-standing commitment to shareholder value.
This document provides a comprehensive overview of Nestlé India’s dividend-related activities, including its yield, payout trends, and associated financial metrics in recent years. For investors focused on income-generating stocks, analysing Nestlé India’s dividend patterns is essential to making informed investment decisions.
Nestlé India Ltd Dividend Overview
- Latest Dividend Declared: On January 24, 2025, the Board of Directors declared an interim dividend of ₹14.25 per share
- Dividend Yield: As of the latest data, the dividend yield stands at 0.79%.
- Record Date: The record date for the interim dividend declared on January 24, 2025, was February 7, 2025.
- Ex-Dividend Date: The ex-dividend date for this interim dividend was February 7, 2025.
- Payout Ratio: The dividend payout ratio for the financial year ending December 2024 was 79%.
Nestlé India Ltd Dividend History
Year
| Dividend Per Share (₹)
| Payout Ratio (%)
|
2024
| 18.25
| 79
|
2023
| 242
| 56
|
2022
| 210
| 89
|
2021
| 200
| 91
|
2020
| 196
| 93
|
2019
| 306
| 168
|
Note: The dividend per share for 2024 reflects the sum of interim dividends declared during the year.
Nestlé India Ltd Dividend Yield & Financial Performance
Nestlé India’s dividend yield has experienced modest fluctuations, shaped by both market valuation and the company’s profitability. As per the most recent figures, the company recorded a dividend yield of 0.79%, which, while lower than industry averages, reflects its premium stock valuation and consistent dividend payouts over time.
The company also boasts impressive profitability metrics, with a Return on Capital Employed (ROCE) of 169% and a Return on Equity (ROE) of 135%. These high returns indicate strong operational efficiency and effective capital utilisation, reinforcing Nestlé India’s ability to sustain dividend payments even amidst changing market conditions.
Nestlé India Ltd Dividend Policy & Factors Affecting It
Nestlé India adheres to a shareholder-friendly dividend policy that balances the need for rewarding investors with maintaining internal reserves for growth. The company places significant emphasis on distributing a sizable share of its net profits while retaining sufficient earnings to fuel future expansions and innovations.
In 2024, Nestlé India maintained a high dividend payout ratio of 76.48%, signalling a clear commitment to sharing its profits with shareholders. Key factors influencing its dividend policy include overall profitability, cash flow health, capital expenditure plans, and broader economic conditions that may affect business performance.
How to Check & Claim Dividends?
Shareholders can easily track Nestlé India’s dividend announcements through the investor relations section of the company’s official website, as well as stock exchange platforms like BSE and NSE. These platforms provide details on declaration dates, record dates, and payment timelines for all dividends.
Typically, dividends are credited electronically to the shareholders’ bank accounts linked to their demat accounts. In the event of non-receipt or discrepancies, investors should promptly contact Nestlé India’s investor relations department or the company's registrar and transfer agent. Brokerage firms can also assist in resolving such issues and retrieving unclaimed dividends.
Conclusion & Investment Takeaways
Nestlé India Limited’s history of consistent dividend payments reflects its robust financial foundation and investor-centric approach. While its dividend yield may appear modest compared to some other companies, the reliability and sustainability of payouts make it a dependable income-generating investment.
Investors considering Nestlé India should assess its dividend performance in conjunction with other financial indicators and market conditions. The company’s strong brand portfolio, operational efficiency, and sound dividend practices position it as a stable long-term investment, particularly for those seeking a blend of capital appreciation and regular income.
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