In a market often swayed by short-term noise and speculative moves, consistency can easily be overlooked. Yet for income-focused investors, a reliable stream of dividends can matter just as much as capital gains, sometimes even more.
Markets frequently face volatility, making it tough to predict what’s coming next. During such times, dividend-paying stocks provide a sense of stability and steady income. Over the past three years, several Indian companies have consistently paid dividends without interruption, demonstrating their strong financial and cash flow position.
But the real question is—do they still have room to deliver? Let’s take a look..
#1 Gujarat Pipavav Port
Incorporated in 1992, Gujarat Pipavav has been operating the Pipavav Port in Saurashtra, Gujarat, since 1998. The company is a part of the A.P. Moller-Maersk (APM) Group, one of the world’s largest shipping and logistics companies.
APM Group operates ports and terminal facilities globally. It operates and manages more than 75 ports in 40 countries worldwide, as well as inland service operations in over 100 locations across 50 countries.
The company continues to benefit from access to modern technology, operational expertise, and best industry practices due to its association with APM Group.
Gujarat Pipavav has maintained a consistent dividend track record over the past four years, paying ₹4 in FY22, ₹6.1 in FY23, and ₹7.3 in FY24. It paid a dividend of ₹8.2 per share in FY25, translating to a yield of 5.6% at a current market price (CMP) of ₹147.
In terms of financials, revenue remained stable at ₹9.9 billion. The company recorded a 14% growth in liquefied petroleum gas volume shipments and a massive 70% increase in vehicle shipments. However, the strong growth was offset by declines in fertilizer and coal, as well as EXIM and transshipment volumes.
The company’s margins remained stable at 58%. Still, net profit rose 13% to ₹3.9 billion compared to last year, driven by lower finance costs and exceptional item.
Looking ahead, the company plans capital expenditure (capex) of ₹7 billion for capacity expansion at the liquid berth in FY26 and FY27. The capex will be funded entirely through internal resources.
Gujarat Pipavav Port, situated at a strategic location with proximity to industrial hubs in Gujarat and the northern states, should continue to support revenue growth. As such, dividend payout will likely continue from the profit generated after meeting the capex.
From a valuation perspective, the company trades at a price-to-earnings multiple of 18x, which is a discount to the 10-year median of 23x. Relatively too, it trades at a discount to Adani Ports (28x), JSW Infrastructure (40).
There are a few other consistent dividend-paying stocks as well, like Castrol and Oil India, which we’ve covered separately.
#2 DB Corp
DB Corp is India’s largest print media company, publishing five newspapers, including Dainik Bhaskar, Divya Bhaskar, and Divya Marathi, with 210 sub-editions in three languages (Hindi, Gujarati, and Marathi) across 12 states in India.
The company has a total readership of over 67 million. As of March 31, 2024, it has 51 Printing centres with 84 state-of-the-art machines and an installed capacity of about 3.3 million copies per hour.
The company’s other business interests also extend to the radio segment through the brand “94.3 MY FM” radio station, which has a presence in 7 states and 30 cities. Its growing digital business is led by four portals and three actively downloaded mobile applications for the rapidly growing digital audience.
DB Corp has a strong track record of dividend payments. It paid ₹5 in FY22, ₹6 in FY23, and ₹13 in FY24. It paid a dividend of ₹12 per share in FY25, translating to a yield of 4.8% at the CMP of ₹249.
In FY25, DB Corp’s revenue declined 2.5% to ₹24 billion, primarily due to sluggish market conditions in Q4 and an election-induced high base. Of this, 69% came from advertising and 19% from circulation. Advertising and circulation revenue fell 3.6% and 1.2%, respectively.
Positively, EBITDA margin stayed flat at 19.6%. However, net profit declined 13% to ₹3.7 billion, as lower revenue weighed on overall profitability. It has a strong return on capital employed of 22.2%, indicating the ability to generate strong returns.
Nonetheless, the company expects to return to a growth trajectory in the upcoming quarters. Its digital business is on a strong growth trajectory, having reached over 19.6 million monthly active users, and the aim is to sustain this growth.
The company is expanding into 14 states, including Uttar Pradesh and Uttarakhand, for digital mobile app outreach. Monetizing the digital business will help the Company adapt to volatility in advertising revenues, due to competition from alternative media platforms (such as TV and OTT).
From a valuation perspective, the company trades at a price-to-earnings multiple of 12x, which is a discount to the 10-year median of 14x. Relatively, it trades at a discount to Jagran Prakashan (19x), and in line with TV Today Network (12).
#3 Chennai Petroleum Corporation
Chennai Petroleum Corporation is majority owned by Indian Oil Corporation (IOCL). It is in the business of refining crude oil to produce and supply petroleum products, as well as manufacturing and selling lubricating oil additives.
The company has a refining capacity of 10.5 million metric tons per annum (mmtpa) at Manali. It produces petroleum products, lubricants, and additives. It also provides high-quality feedstock, including propylene, superior kerosene, butylenes, naphtha, paraffin wax, and sulfur, to other industries.
The company gets operational synergies from Indian Oil as both are in the same business. These synergies include the pooling of crude oil through Indian Oil, which benefits from bulk purchases made by the parent company. India Oil buys 90% of the company’s output.
Chennai Petro has a strong track record of dividend payments. After paying ₹2 in FY22, the dividend surged to ₹27 in FY23 and ₹55 in FY24, driven by a significant jump in profitability. However, in FY25, the dividend declined to ₹5 per share, reflecting a drop in profitability.
The company’s revenue in FY25 fell 10% from last year to ₹710 billion, while net profit declined 92% to ₹2.1 billion, as operating margin crashed 5.7 percentage points to 0.8%. Net profit fell due to a significant reduction in product cracks. Gross refining margin halved to $4.22 per barrel from $8.64 per barrel last year.
The maintenance and inspection shutdown also affected th profitability. In FY24, the company operated at full capacity; however, the scheduled maintenance shutdown had an impact on efficiency.
Looking ahead, the impact of scheduled maintenance and inspection shutdowns in FY26 is expected to be lower than in FY25. Thus, the company expects a higher throughput in FY26 on the operational part. The company, however, has not guided any future cracks due to high volatility in international cracks.
From a valuation perspective, Chennai Petro is trading at a price-to-equity multiple of 49, a premium to a 10-year median of 5x. The company’s stock price has seen a large re-rating in the past year, leading to an increase in valuation.
Conclusion
All three of these stocks have shown consistent dividend payouts over the past three years. However, while DB Corp and Gujarat Pipavav operate in a relatively stable industry, which enables them to generate steady profitability, Chennai Petro’s business is highly volatile. This reflects its volatility in its financials.
That said, improving the financials of all three businesses could allow them to not only pay dividends but also increase them, as seen historically. However, before investing now, it is essential to assess current market conditions and company fundamentals to determine if they still align with your portfolio goals.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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