ITC (LUX:ITC) Dividend Payout Ratio: 1.52 (As of Mar. 2026) — 85% Above Median


LUX:ITC ITC Ltd LUX:ITC
81 GF Score
Price $5.50
GF Value $8.81
! 1 Warning Sign
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What is ITC Dividend Payout Ratio?

ITC LUX:ITC 81 Dividend Payout Ratio is 1.52 as of Mar. 2026, which is 85% above its 10-year median of 0.82. GuruFocus rates LUX:ITC with a GF Score™ of 81/100 and a GF Value™ of $8.81. The stock has 1 warning sign investors should review. Among 29 Tobacco Products companies, ITC ranks worse than 68.97% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. ITC's Dividend Payout Ratio for the months ended in Mar. 2026 was 1.52.

Warning Sign:

If a company's dividend payout ratio is too high, its dividend may not be sustainable. The dividend payout ratio of ITC Ltd is 0.86, which seems too high.

The historical rank and industry rank for ITC's Dividend Payout Ratio or its related term are showing as below:


During the past 13 years, the highest Dividend Payout Ratio of ITC was 1.51. The lowest was 0.48. And the median was 0.82.

LUX:ITC's Dividend Payout Ratio is not ranked *
in the Tobacco Products industry.
Industry Median: 0.68
* Ranked among companies with meaningful Dividend Payout Ratio only.

As of today (2026-06-29), the Dividend Yield % of ITC is 0.00%.

During the past 13 years, the highest Trailing Annual Dividend Yield of ITC was 7.77%. The lowest was 1.67%. And the median was 3.32%.

ITC's Dividends per Share for the months ended in Mar. 2026 was $0.07.

During the past 12 months, ITC's average Dividends Per Share Growth Rate was 2.50% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 5.40% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 1.50% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 16.00% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of ITC was 47.20% per year. The lowest was -5.00% per year. And the median was 15.10% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

ITC (LUX:ITC) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

ITC Dividend Payout Ratio Related Terms

ITC Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for ITC's Dividend Payout Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

ITC Dividend Payout Ratio Chart

ITC Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.92 0.79 0.84 0.89 0.84

ITC Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Dividend Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.56 1.82 0.00 0.00 1.52

LUX:ITC vs PM, MO, TPB: Dividend Payout Ratio Comparison

For the Tobacco subindustry, ITC's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

ITC Dividend Payout Ratio vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, ITC's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where ITC's Dividend Payout Ratio falls into.


LUX:ITC
81GF Score
ITC Ltd LUX:ITC
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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ITC Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

ITC's Dividend Payout Ratio for the fiscal year that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Mar. 2026 )/ EPS without NRI (A: Mar. 2026 )
=0.152/ 0.18
=0.84

ITC's Dividend Payout Ratio for the quarter that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Mar. 2026 )/ EPS without NRI (Q: Mar. 2026 )
=0.07/ 0.046
=1.52

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 1.52 mean?
ITC (LUX:ITC) has a Dividend Payout Ratio of 1.52 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on ITC and its competitors. This is 85% above median its historical median of 0.82. Over the past decade, ITC's Dividend Payout Ratio has ranged from 0.48 to 1.51. According to the industry distribution chart, ITC ranks #20 out of 29 companies in the Tobacco Products industry, placing it in the top 69%.
Is ITC's Dividend Payout Ratio too high?
ITC's current Dividend Payout Ratio of 1.52 is 85% above median its 10-year median of 0.82. Over the past 10 years, this metric has ranged from a low of 0.48 to a high of 1.51. The Tobacco Products industry median Dividend Payout Ratio is 0.68. ITC's value of 1.52 is 123.5% above this industry median. Based on the distribution chart, ITC ranks #20 out of 29 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, ITC has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does ITC's Dividend Payout Ratio compare to PM and MO?
According to the Tobacco Products industry distribution chart, ITC ranks #20 out of 29 companies for Dividend Payout Ratio. This places ITC in the lower half of its industry. The industry median Dividend Payout Ratio is 0.68. ITC's value of 1.52 is 123.5% above this benchmark. Historically, ITC's own Dividend Payout Ratio has ranged from 0.48 to 1.51 over the past decade. While the company's 10-year median is 0.82 vs. the industry median of 0.68, ITC has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Tobacco Products company?
The median Dividend Payout Ratio among Tobacco Products companies is 0.68, based on 29 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ITC's current Dividend Payout Ratio of 1.52 is 123.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on ITC and its competitors. For the Tobacco Products industry, the median Dividend Payout Ratio is 0.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITC's current Dividend Payout Ratio is 1.52, which is 85% above median its own 10-year median of 0.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITC stock overvalued right now?
ITC (LUX:ITC) has a current Dividend Payout Ratio of 1.52. The stock's GF Value™ is $8.81, compared to a current price of $5.50 — trading 37.6% below its estimated fair value. The current Dividend Payout Ratio is 1.52, which is 85% above median its 10-year median of 0.82 and 123.5% above the Tobacco Products industry median of 0.68. ITC's overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For ITC (LUX:ITC), the current Dividend Payout Ratio is 1.52 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is ITC (LUX:ITC) Overvalued in 2026?

Based on GuruFocus' analysis, ITC stock appears to be undervalued. The current stock price of $5.50 is trading 37.6% below its estimated GF Value™ of $8.81.

Key valuation signals for LUX:ITC:

  • Dividend Payout Ratio: 1.52 (85% above median its 10-year median of 0.82)
  • GF Value™: $8.81 vs. price of $5.50 (37.6% below fair value)
  • GF Score™: 81/100 with 1 warning sign
  • Industry Position: 123.5% above the Tobacco Products median (#20 of 29)

No single metric tells the full story. See the LUX:ITC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

ITC Business Description

Address 37 Jawaharlal Nehru Road, Virginia House, Kolkata, WB, IND, 700071
ITC Ltd is an Indian conglomerate that predominantly operates in the consumer goods space, particularly cigarettes. The company operates in three main business segments: Fast Moving Consumer Goods; Paperboards, Paper, and Packaging; and Agri-Business. The company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.
81GF Score

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Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$5.50
Price
$8.81
GF Value