A STUDY ON DIVIDEND POLICIY IN FMCG SECTOR AT HINDUSTAN UNILEVER LIMITED

Abstract

Investor trust and the methods used to distribute earnings are both affected by a company's dividend policy. In order to foster future growth, fast-moving consumer goods (FMCG) companies should reinvest their earnings while also distributing dividends to shareholders. The dividend policies of Hindustan Unilever Limited (HUL), a prominent Indian FMCG firm, have contributed to this consistency. By looking at its payout ratios and dividend records, HUL shows that profitability and liquidity are its top priorities. Despite letting market forces shape its strategy, the corporation has consistently maintained a solid dividend policy. This consistency not only shows long-term financial stability but also reassures investors and strengthens HUL's brand. Maintaining the company's capacity to secure financing for sustainable expansion allows for consistent distribution of earnings to owners. This policy demonstrates HUL's dedication to aligning its business strategy with the expectations of its investors. It further demonstrates how regulatory frameworks impact fast-moving consumer goods dividend decisions. HUL's approach shows how companies can balance sustainable development with shareholder trust.