Dividend yield hits 10-year low of 1.1%; equity payouts down 3% in 2017-18

Equity dividend declines 3% in FY18, while m-cap rises 26%

Dividends of listed companies which have announced their results are lagging behind the rally in their stock prices in the last one year. As a result, the dividend yield has now hit a 10-year low of 1.1 per cent against 1.44 per cent at the end of 2016-17 and 1.5 per cent two years ago.

This is the first time in the past three years when the dividend payout of listed companies has failed to keep pace with the movement in their share prices (see adjoining chart).

Companies have declared dividend worth Rs 930.6 billion so far with their full-year