2. ITC

In the past few months ITC seems to underperform its peers in the FMCG segment over the past few months due to concerns over the stringent packaging guidelines for cigarettes and potential restrictions on the mode of sale. The earnings of the diversified conglomerate have clocked a compound annual growth of nearly 20 percent in the past decade. Its strong pricing power in the cigarettes segment, the primary driver of its profits, has ensured that ITC has maintained its margins over the years. The robust cash flow has translated into a windfall for its shareholders.

ITC shares have yielded an impressive 26 percent CAGR in the past 10 years, while maintaining a track record of generous dividend payouts, averaging more than 50 percent of the net profit during this period. In the past 10 years, the company has made a net profit of 44,925 crore. Of this, 25,350 crore has been given out as dividend to its shareholders.

3. GlaxoSmithKline Consumer Healthcare

MNC stocks are a big draw among investors and it isn't too difficult to understand. These companies are reputed for quality management, superior corporate governance and best global practices. Their stocks typically command a valuation premium for these very reasons. Besides, most MNCs are known to have a generous dividend policy.

GSK Consumer Healthcare is one such stock. GSK has paid an average dividend of 38 percent of net profit in the past 10 years, while the stock has beaten the Sensex seven times in 10 years. With a 65 percent share of the market in this space, GSK enjoys huge pricing power. Besides, it has brands such as Crocin, Eno and Iodex in its over-the-counter drugs portfolio.