Corporate tax cut can improve India Inc dividend by 40%: ICICI Securities

ONGC, BPCL, Coal India, Hero Motocorp, NMDC, Power Grid and Infosys are the top picks for the brokerage in the high-dividend space

The reduction in corporation tax rates will improve India Inc’s dividend payout profile, says domestic brokerage ICICI Securities. If companies decide to transfer the additional profit gains to investors, the dividend payout for Nifty 50 companies could increase by nearly 40 per cent, the brokerage estimates.

Last month, the government had cut the marginal tax rate from 35 per cent to 25 per cent in a bid to boost the sagging economy. Following the move, the Nifty had risen as much as eight per cent as analysts raised earnings growth forecasts for most companies.

ICICI Securities believes investors can look