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Dividend Yield: 3.2%

ITC Limited, with a dividend yield of 3.21%, ranks in the top 25% of Indian dividend payers. Despite a stable history of increasing dividends over the past decade, its dividend sustainability is questionable as both earnings and cash flows struggle to cover payouts, evidenced by payout ratios of 78.8% and 109.7%, respectively. Recent financials show growth with FY2024 net income at INR 204.59 billion, up from INR 191.92 billion last year; however, this growth does not fully alleviate concerns over its high payout commitments.

• Unlock comprehensive insights into our analysis of ITC stock in this dividend report.

• According our valuation report, there's an indication that ITC's share price might be on the expensive side.

Redington

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Redington Limited operates as a supply chain solutions provider in India and globally, with a market capitalization of approximately ₹159.36 billion.

Operations: Redington Limited generates its revenue through supply chain solutions both in India and across various international markets.

Dividend Yield: 3.5%

Redington's dividend sustainability is supported by a payout ratio of 40.4% and a cash payout ratio of 58.8%, indicating that dividends are well-covered by both earnings and cash flows, despite a history of volatility in dividend payments over the past decade. Recent financial results show steady performance with year-over-year increases in sales and net income for Q4 2024, suggesting potential stability moving forward. However, the company's dividends have been historically unreliable, which could concern investors looking for consistent returns.

• Get an in-depth perspective on Redington's performance by reading our dividend report here.

• Our valuation report unveils the possibility Redington's shares may be trading at a discount.

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Want To Explore Some Alternatives?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NSEI:ACCELYA NSEI:ITC and NSEI:REDINGTON.

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