Multinational companies flush with funds from the sale of land and better cash flow are proposing special dividends or a step up of their regular dividends.
During 2004, as many as five multinational pharmaceutical, chemicals and fast-moving consumer goods companies proposed special dividends; five other multinationals proposed to step up their yearly dividends.
AstraZeneca Pharmaceutical, GlaxoSmithkline, Bayer ABS, Foseco and Nestle India proposed to pay special dividends, in addition to their regular dividends, while Motor Industries, ABB, Disa India, Bayer Diagnostic and Goodricke stepped up dividends.
AstraZeneca Pharma recommended a special silver jubilee dividend of 450 per cent (Rs 45 per share), in addition to a 50 per cent dividend for 2004, taking the total dividend to 500 per cent versus the 39 per cent paid in the previous year.
GlaxoSmithKline proposed a one-time special dividend of 110 per cent from its profit from the sale of property at Worli in Mumbai.
The company also proposed a higher dividend of 130 per cent (100 per cent in 2003), taking the total dividend to 240 per cent for 2004.
Bayer ABS proposed to step up its dividend to 105 per cent, including a special dividend of 80 per cent and the regular dividend of 25 per cent.
The company paid a dividend of 25 per cent in the previous year. Nestle recommended a special dividend of 45 per cent and two interim dividends of 100 per cent each for 2004.
Foseco stepped up its dividend to 205 per cent (145 per cent in the previous year), including a special dividend of 30 per cent.
Hindustan Lever was the only multinational company that pruned its dividend. It paid a reduced dividend of 500 per cent (Rs 5 per share of Re 1), down from 550 per cent (Rs 5.50 per share) paid in the previous year.
Alfa Laval (250 per cent), Merck (100 per cent), Gujarat Gas Company (100 per cent each), Gillette India (85 per cent), Castrol (82.50 per cent) and Atlas Copco (50 per cent) maintained their rates of dividend.
Motor Industries stepped up its dividend by 35 per cent to 100 per cent from the 65 per cent paid in the previous year. ABB declared a 70 per cent (60 per cent) dividend for 2004.
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