Dr. Reddy's Laboratories Limited
RDYHealthcare · Stock · annual payer
Forward Yield
0.66%
Annual Dividend
$0.08
Payout Ratio
16%
5-Yr Growth
6.6%
Ex-Date
Jul 9, 2026
Frequency
Annual
Summary
As of July 2026, Dr. Reddy's Laboratories Limited (RDY) yields 0.66% ($0.08 per share annually), with a blended fair-value estimate of $4.29 — -66% downside, so it screens as overvalued. Dividend safety grade: C (62/100).
Is RDY a good dividend stock?
Yes, with caveatsDr. Reddy's Laboratories Limited (RDY) pays a annual dividend yielding 0.66% ($0.08/yr), with 0 years of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
- Comfortable payout ratio (16%)
- Strong 6.6% 5-yr dividend growth
Risks
- Cut its dividend in 2025
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 0.66%
- Payout Ratio
- 16%
- Annual Dividend
- $0.08
- 5-Yr Avg Growth
- 6.6%
- Ex-Dividend Date
- Jul 9, 2026
- Years of Growth
- 0
- Frequency
- annual
- Beta
- 0.26
- Market Cap
- $10.5B
- P/E Ratio
- 22.9
- 5-Yr Total Return
- -2%
- 52-Week Range
- $12.19 – $15.67
- Dividend Safety
- C · 62/100
- Ever Cut?
- Yes (2025)
Frequently Asked Questions
RDY Price — Last 12 Months
Daily close
Price Return
1 Year
-11%
3 Years
-7%
5 Years
-2%
52-Week Range
$12.19 – $15.67
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is RDY worth?
Overvaluedlow confidenceOur blended fair-value estimate for Dr. Reddy's Laboratories Limited is $4.29 per share, versus a market price of $12.60. That implies 66% of downside.
Fair Value
$4.29
Current Price
$12.60
Downside
-66%
Margin of Safety
-194%
How we get there
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model -5.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.0% discount rate (CAPM), -5.0% stage-1 growth, 2.5% terminal growth, $0.55 EPS, $0.08 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
RDY Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jul 25, 2025 | — | $0.0910 | regular |
| Jul 30, 2024 | — | $0.0958 | regular |
| Jul 28, 2023 | — | $0.0976 | regular |
| Jul 7, 2023 | — | $0.0976 | regular |
| Aug 1, 2022 | — | $0.0756 | regular |
| Jul 8, 2022 | — | $0.0774 | regular |
| Jul 30, 2021 | — | $0.0672 | regular |
| Jul 8, 2021 | — | $0.0684 | regular |
| Jul 10, 2020 | — | $0.0660 | regular |
| Jul 12, 2019 | — | $0.0574 | regular |
| Jul 13, 2018 | — | $0.0594 | regular |
| Jul 13, 2017 | — | $0.0620 | regular |
| Jul 14, 2016 | — | $0.0594 | regular |
| Jul 8, 2015 | — | $0.0624 | regular |
Income Calculator
At $0.08 / yr per share
