ITC vs HUL: A Deep Dive into Dividend Yields History of 2 FMCG Majors

As the Indian FMCG sector gears up for Q4FY25 earnings, two industry giants — ITC Ltd. and Hindustan Unilever Ltd. (HUL) — are firmly in the spotlight. The interest isn’t just limited to their financial results but also their strong dividend track record, which makes them attractive to income-seeking investors.

Both ITC and HUL boast dividend yields above 1%, placing them among the top dividend-paying stocks in the FMCG space. Notably, HUL and ITC are among India’s top 10 most valuable companies by market capitalisation, with HUL holding a market cap of approximately ₹5.56 lakh crore, while ITC trails close behind at ₹5.28 lakh crore.

Dividend Declarations: FY25 Scorecard

In FY25 so far, both companies have rewarded shareholders with generous interim dividends.

• ITC declared an interim dividend of ₹6.5 per share, translating to a 650% payout on its ₹1 face value.
• HUL announced a much higher interim dividend of ₹29 per share, amounting to a 2900% payout on the same face value.

These are interim payouts, and both firms are expected to announce final dividends soon. HUL has scheduled a board meeting on April 24 to recommend the final dividend for FY25.

Dividend Yield: Who Delivers Better Returns?

While HUL’s absolute dividend payout is higher, the dividend yield — a key metric for measuring return on investment — tells a different story.

• At its current market price of ₹422, ITC’s dividend yield stands at approximately 1.54%.
• Meanwhile, HUL, trading at around ₹2,362.10, offers a lower dividend yield of 1.23%.

This makes ITC the more attractive option for investors focused on yield, despite HUL’s larger per-share payout.

Q3FY25 Financial Performance

ITC:

• Standalone Net Profit: ₹5,638 crore (+1% YoY), beating analyst estimates.
• Consolidated Net Profit: ₹5,013 crore (-7% YoY).
• Revenue from Operations: ₹20,350 crore, up from ₹18,880 crore YoY.
• Also declared its ₹6.5/share interim dividend during this quarter.

HUL:

• Net Profit: ₹3,001 crore (+19% YoY).
• Revenue: ₹15,818 crore, reflecting 1.6% growth YoY.
• EBITDA Margin: Held steady at around 23.5%.

Stock Performance Snapshot

ITC closed its last trading session at ₹422, marking a 1.3% gain for the day. Over the last five days, the stock has climbed 4%, and it has gained 3.5% in the past month. However, the medium-term performance remains weak:

• Down 15% over the last six months
• Down 13% in calendar year 2025 so far
• Slipped around 1% year-on-year

Conclusion 

In contrast, HUL’s stock movement wasn’t detailed in the latest session, but its consistent performance and profitability continue to attract investor attention, especially with dividend declarations and Q4 results on the horizon.

As both FMCG heavyweights prepare to release their Q4FY25 results, investors will closely monitor not just the earnings, but also the final dividend announcements, which could further impact their stock momentum in the coming weeks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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