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1.

Infosys

YEAR 2018 2017 2016 2015 2014


DIVIDEND/SHARE 43.5 25.75 24.25 59.5 63
RETURN ON EQUITY 0.2544 0.2031 0.2078 0.253 0.2421
[r]
RETENTION RATIO 0.6519 0.4948 0.5611 0.5798 0.645
[b]
G[r*b] 0.165843 0.100494 0.116597 0.146689 0.156155 0.137156

Estimated dividend for 2019 will be calculated as


Div1 = Div0*(1+G)
Div0 = Dividend of last FY (2018)
Here Growth rate is calculated as
G= r*b (which is average of five years)
G= 0.137156 (13.7156%)

Predicted Dividend Per Share (2019) = 43.5*(1+0.137156) = ₹ 49.46627

2. Wipro
Year 2018 2017 2016 2015 2014
DIVIDEND/SHARE 1 2 6 12 8
RETURN ON
EQUITY[r] 0.1827 0.1747 0.1989 0.2366 0.2516
RETENTION
RATIO[b] 0.9414 0.9106 0.565 0.6382 0.7328
G[r*b] 0.171994 0.159082 0.112379 0.150998 0.184372 0.155765

Estimated dividend for 2019 will be calculated as


Div1 = Div0*(1+G)
Div0 = Dividend of last FY (2018)
Here Growth rate is calculated as
G= r*b (which is average of five years)
G= 0.155765 (15.5765%)

Predicted Dividend Per Share (2019) = 1*(1+0.155765) = ₹ 1.55765


3. HDFC
Year 2018 2017 2016 2015 2014
DIVIDEND/SHARE 13 11 9.5 8 6.85
RETURN ON
EQUITY[r] 0.1645 0.1626 0.1691 0.1647 0.195
RETENTION RATIO
[b] 1 1 0.8046 0.8037 0.8061
G[r*b] 0.1645 0.1626 0.136058 0.132369 0.15719 0.150543

Estimated dividend for 2019 will be calculated as


Div1 = Div0*(1+G)
Div0 = Dividend of last FY (2018)
Here Growth rate is calculated as
G= r*b (which is average of five years)
G= 0.150543 (15.0543%)

Predicted Dividend Per Share (2019) = 1*(1+0.150543) = ₹ 14.95706

4. ITC
YEAR 2018 2017 2016 2015 2014
DIVIDEND/SHARE 5.15 4.75 8.5 6.25 6
RETURN ON
EQUITY[r] 0.2183 0.2249 0.2994 0.3131 0.3351
RETENTION
RATIO[b] 0.4858 0.3294 0.3051 0.4785 0.4568
G[r*b] 0.10605 0.074082 0.091347 0.149818 0.153074 0.114874

Estimated dividend for 2019 will be calculated as


Div1 = Div0*(1+G)
Div0 = Dividend of last FY (2018)
Here Growth rate is calculated as
G= r*b (which is average of five years)
G= 0.114874 (11.4874%)

Predicted Dividend Per Share (2019) = 1*(1+0.114874) = ₹ 5.741602


5. Reliance Capital
YEAR 2018 2017 2016 2015 2014
DIVIDEND/SHARE 11 0 10.5 10 9
RETURN ON
EQUITY[r] 0.0584 0.0584 0.0305 0.0735 0.0601
RETENTION RATION
[b] 0.6799 0 0 0.741 0.7001
G[r*b] 0.039706 0 0 0.054464 0.042076 0.027249

Estimated dividend for 2019 will be calculated as


Div1 = Div0*(1+G)
Div0 = Dividend of last FY (2018)
Here Growth rate is calculated as
G= r*b (which is average of five years)
G= 0.027249 (2.7249%)

Predicted Dividend Per Share (2019) = 1*(1+0.027249) = ₹ 11.29974

There are different ways to calculate growth. Here, we have considered retention ratio and
return on equity to find out growth within the company. This is called internal growth rate.
In the formula, Div0 is the dividend of 2018 and growth rate is the average of five years of
r*b.
All the data has been taken from https://www.moneycontrol.com/.
All the calculation has been done in excel.