Only a few Indian companies have a clearly articulated dividend payout policy. According to JP Morgan, companies wanting to enhance shareholder value would do well to have a consistent payout policy – with stable to rising dividends. “Our analysis shows that companies with such a policy have consistently outperformed the benchmark over the last decade,” said Bharat Iyer, JP Morgan's India equity strategist in a note to clients. Companies with a consistent dividend pay out of at least 20 per cent have also outperformed the benchmark index over the last decade,
JP Morgan's analysis showed.(Click on graphic)