Dividends continue to play a vital role in wealth creation for investors, providing a stable income stream alongside capital appreciation. FY25 saw several Nifty 500 companies rewarding shareholders with impressive payouts, reflecting strong profitability and prudent capital allocation strategies despite global economic headwinds.
On 7 July 2025, dividend data revealed the top 5 companies with the highest payouts in the Nifty 500 index. Let’s take a closer look at these dividend champions and how they are creating value for their investors.
Tata Consultancy Services (TCS)
Tata Consultancy Services [NSE: TCS], India’s largest software exporter, topped the list with an extraordinary dividend performance. The company declared a total dividend payout of ₹45,612 crore, marking a 72.6% increase year-on-year. This included a special dividend of ₹66 per share announced in January 2025.
TCS’s equity dividend percentage stood at 12,600%, translating to a dividend of ₹126 per share on a face value of ₹1. The firm’s payout ratio surged to 93.9% of FY25 net profit, significantly higher than 58% in FY24. This indicates TCS’s strategic decision to return most of its profits to shareholders amidst limited capital investment opportunities in the current global environment.
Page Industries
Innerwear giant Page Industries [NSE: PAGEIND] secured second place with a sharp increase in dividend payouts. The company nearly doubled its dividend to 9,000% in FY25 compared to 3,700% a year ago. This growth reflects robust profitability and effective cash management, reinforcing Page Industries’ commitment to consistent investor returns.
Hero MotoCorp
Hero MotoCorp [NSE: HEROMOTOCO], India’s leading two-wheeler manufacturer, continued to showcase its strong cash generation capabilities. The company declared a dividend of 8,250% in FY25, up from 7,000% in FY24. This steady rise underlines the automotive major’s stable operating performance and its focus on rewarding shareholders while maintaining growth investments.
Britannia Industries
Britannia Industries [NSE: BRITANNIA], the renowned biscuit and packaged foods maker, maintained its high dividend payouts in FY25. The company declared a dividend of 7,500%, slightly up from 7,350% in the previous year. This consistency demonstrates Britannia’s resilient business model and its ability to generate strong cash flows even during economic uncertainties.
Eicher Motors
Eicher Motors [NSE: EICHERMOT], known for its premium Royal Enfield motorcycles, also featured among the top dividend payers. The company raised its dividend to 7,000% from 5,100% in FY24, reflecting strong profitability and confidence in future growth prospects. The increase signals Eicher’s commitment to sharing profits generously with its shareholders.
Why Dividends Matter for Investors?
Dividends are not merely periodic cash inflows; they signify a company’s financial health, stability, and management’s confidence in sustained earnings. High dividend payouts provide:
- Regular income for investors, especially retirees or those seeking cash flows.
- Signals of strong profitability and prudent capital allocation.
- Reduced investment risk, as companies with healthy payouts often have robust balance sheets.
Outlook for India’s Dividend Landscape
India Inc’s focus on returning capital to shareholders is expected to strengthen further with rising investor awareness and market maturity. Companies with consistent and high dividend payouts are likely to attract long-term investors seeking stable income alongside portfolio growth.
Conclusion
FY25 showcased the ability of leading Indian corporates to reward their investors generously despite global uncertainties. TCS, Page Industries, Hero MotoCorp, Britannia, and Eicher Motors emerged as the top five companies with the highest dividend payouts within the Nifty 500. Their commitment to creating shareholder value reaffirms dividends as a critical pillar of investment returns in today’s dynamic markets.
