ABSTRACT
This chapter discusses an overview of Indian power industry. Following power companies are selected for the dividend analysis: NTPC, NHPC, TATA Power, Power Grid, and Torrent Power. The dividend trend of the units has been analysed with the help of dividend payout ratio and its trend. Earning potential has been evaluated by analysing their EPS trend. This helps to find out the interrelationship among these two indicators for shareholders interest. For year 2012 the dividend paid has not increased and thus DPS is same for the two years but here stock split took place thus increasing the number of shares and consequently the DPS. But here also, stock split took place and thus the EPS decreased because the number of shares is increasing. So companies should try to increase their DPS but at a consistent rate to woo the shareholders to invest more and more in them.
