Shareholders rejoice as companies announce bumper dividends
Sunday, 30 May 2010
MUMBAI, May 29 (Economic Times): The shareholders of two-wheeler major Hero Honda have already had their share of excitement in the company's silver jubilee celebrations, thanks to the announcement of the bumper 5500 per cent dividend by the management recently.
Last week, multi-business conglomerate ITC rewarded its shareholders with a 1000-per cent dividend on completing 100 years. Their act of generosity, hope investors, may inspire many other companies that are currently observing silver, golden, platinum jubilee or centenary, to loosen the purse strings for their shareholders.
As many as 37 companies have completed or will soon complete 25, 50, 75 or 100 years of their operations in corporate India, according to the list on the basis of background information available with CMIE.
The period of their existence could not be confirmed from each of the companies except for Hero Honda and ITC which have mentioned about their silver jubilee and centenary occasions while declaring special dividends.
Apart from ITC, Lakshmi Mills is one more company which is observing a centenary year. Among other notable examples, Cipla, BOC and Bank of Maharashtra have been around for 75 years and so are in the platinum jubilee year.
The list of the companies observing golden jubilee includes a few major companies Atlas Copco and MRF which are established, fundamentally sound with track record of profitability to their credit.
Notable among the companies observing silver jubilee are ABG Shipyard, Jupiter Bioscience, Praj Industries, Rajshree Sugars, Ucal Fuel Systems, Uttam Galva and Welspun India. Most of these companies have yet not announced any special dividend, as their audited results are still awaited.
They may or may not do so, depending upon the management policy and their performance in FY10.
"In most of the AGMs, minority shareholders express their desire for larger dividends from the company.
Last week, multi-business conglomerate ITC rewarded its shareholders with a 1000-per cent dividend on completing 100 years. Their act of generosity, hope investors, may inspire many other companies that are currently observing silver, golden, platinum jubilee or centenary, to loosen the purse strings for their shareholders.
As many as 37 companies have completed or will soon complete 25, 50, 75 or 100 years of their operations in corporate India, according to the list on the basis of background information available with CMIE.
The period of their existence could not be confirmed from each of the companies except for Hero Honda and ITC which have mentioned about their silver jubilee and centenary occasions while declaring special dividends.
Apart from ITC, Lakshmi Mills is one more company which is observing a centenary year. Among other notable examples, Cipla, BOC and Bank of Maharashtra have been around for 75 years and so are in the platinum jubilee year.
The list of the companies observing golden jubilee includes a few major companies Atlas Copco and MRF which are established, fundamentally sound with track record of profitability to their credit.
Notable among the companies observing silver jubilee are ABG Shipyard, Jupiter Bioscience, Praj Industries, Rajshree Sugars, Ucal Fuel Systems, Uttam Galva and Welspun India. Most of these companies have yet not announced any special dividend, as their audited results are still awaited.
They may or may not do so, depending upon the management policy and their performance in FY10.
"In most of the AGMs, minority shareholders express their desire for larger dividends from the company.