Power grid announced another interim dividend of Rs. 5. This is the third dividend in 2020 taking cumulative dividends for CY20 to Rs. 15. This is in contrast with CY19/CY18/CY17 where dividends distributed were Rs. 8.33/5.25/4.35. The large increase in dividend reflects increase in free cashflow generation due to higher capitalization of assets compared to CAPEX requirements. Debt/equity has also come down to ~2.01 due to higher free cash generation, the debt/equity has now come down to FY11 levels.
Disclosure: Invested (position size here)