High Dividend Stock: Do you own shares of this company that declared a 2,300% dividend?

The company has been distributing a healthy dividend every quarter for many years.

Understanding dividend

A company can distribute a portion of its profit as a dividend to its shareholders when it generates surplus profit. Stock prices typically rise following the dividend declaration date as investors are willing to pay more for the stock to receive dividends.

The practice of buying shares of companies that regularly distribute dividends to shareholders is known as ‘dividend investing.’ In addition to the growth in your portfolio as your stock gains, dividends can offer a consistent income stream from your investments.

High dividend stock 

One of the companies that offered shareholders significant dividend payouts was Crisil Ltd. The company has been distributing a healthy dividend every quarter for many years. In 2022, the total dividend amount distributed is Rs 40 per share, which is 4,000% of the face value of Re 1 per share.

The board of directors of the company has recommended a final dividend of Rs 23 per equity share of the face value of Re 1 each for the financial year ending December 31, 2022, subject to the approval of the shareholders at the annual general meeting. 

Quarterly performance 

Considering the yearly performance, on a consolidated basis, the net profit of the company surged 21.16% to Rs 564.39 crore as against Rs 465.81 crore during the previous year. Also, net sales soared by 20.34% to Rs 2,768.72 crore as against Rs 2,300.69 crore during the previous year ended on December 2021.

Profitability is reflected in the company's healthy ROE and ROCE levels, as well as outstanding EPS, whereas a high PE ratio is cause for concern.

Company profile 

Crisil Ltd is a globally diversified analytical company that provides ratings, research, risk and advisory services. Keep a close eye on this stock for the upcoming sessions!