Seven companies from the BSE 500 pack paid out more money to shareholders as dividends than the amount they actually earned in net profits in FY25, leading to dividend payout ratios of over 100%. This happened because some of these companies issued special one-time dividends or increased their regular dividend payments beyond their usual levels, according to ET reports.
Companies with a consistent history of dividend payments are often favoured by conservative investors for their predictable annual income. Beyond consistency, the dividend payout ratio — the share of profits distributed to shareholders — is key. A high payout ratio means more profits are returned to investors. Check out top high-dividend payout stocks.