Dividend stocks allow investors to enjoy the double benefits of capital appreciation and consistent regular income. These stocks might not have higher growth potential like growth stocks, but they create a stream of regular income for the investors. Discussed below are the companies announcing dividends for shareholders this month.
Let us begin with the basics first.
What are dividends?
Investors can choose to invest in growth stocks and dividend stocks. But for informed selection, investors should know: ‘what are dividends?’
The dividend is a portion of the company’s profit that the business decides to share with its stakeholders. It is a form of income for investors. Companies issue dividends, cash or otherwise, to keep investors loyal to their business. When a stock’s capital gain is influenced by major market trends, dividends are paid irrespective of the broad market’s ups or downs.
Investors usually perceive dividend-paying companies as stable, and hence, they invest in them for the long term. Besides, dividends help in wealth accumulation and increase the value of their investments over time.
Below is the list of upcoming dividend stocks you can include in your portfolio.
Companies giving dividends in 2023
|Sl no||Company name||Change in Stock Prices in Past 12 Months||Dividend Type||Dividend (%)||Record||Ex-Bonus|
|1||Zensar Tech||-58.93||Interim||0.00||February 03, 2023||February 03, 2023|
|2||TCS||-11.68||Interim||0.00||January 17, 2023||January 16, 2023|
|3||Welspun Enter||75.48||Interim||75.00||January 11, 2023||January 11, 2023|
|4||Shriram Finance||-2.18||Interim||150.00||January 04, 2023||January 03, 2023|
The digital solutions and technology service company offer a wide range of IT services and solutions. It has two primary segments: Digital and Application Services (DAS) and Digital Foundation Services (DFS).
In the last five years, the company has paid an average dividend of 166.00%, dividend per share has averaged ₹03.0.
Market capitalisation: ₹4,856 crore
P/E Ratio (TTM): 13.93
Industry P/E (TTM): 27.49
TCS is an India-based company providing technology solutions to global organisations. The company’s diverse service portfolio – IT and assurance services, business intelligence and performance management, business process service, cloud service, connected marketing solution, mobility solutions, mobility products and services and platform solutions – cater to industries like insurance, healthcare, retail, telecom, and others.
The company has a robust track record of offering dividends to shareholders. So far in FY23, TCS has paid a total dividend of 1600% or ₹16 per share. TCS shares will trade ex-dividend on January 16, 2023
Market capitalisation: ₹ 11,93,381 crore
P/E Ratio (TTM): 30.29
Industry P/E (TTM): 27.49
The company operates in the two segments of infrastructure and oil and gas. It is a holding company that operates in the Hybrid Annuity Model (HAM) and Build and Transfer (BOT) Toll projects.
The company has fixed January 11, 2023, as the record date for determining shareholders’ eligibility for interim dividends.
Market capitalisation: ₹ 2,545 crore
P/E Ratio (TTM): 9.89
Industry P/E (TTM): 18.56
Shriram Finance is an Indian non-banking finance company that offers credit solutions for commercial vehicles, two-wheelers, car loans, home loans, small business loans, personal loans, and gold loans.
The company’s board of directors has approved ₹15.00 interim dividend, aggregative to 150% per share on the face value of ₹10, for eligible shareholders. January 4, 2023, is fixed as the record date to determine the eligibility of shareholders. It is the highest ex-gratia announced by an Indian NBFC to date.
Market capitalisation: ₹ 51,888 crore
P/E Ratio (TTM): 9.82
Industry P/E (TTM): 18.74
Dividends provide payback to the initial investment of investors. It is important to note that stock price is impacted by the performance of the market. Hence, growth stocks generate more returns when the economic conditions are growing. But dividend calculation is done independently of the market. Hence, companies may still pay dividends when their share price has declined. It is also used as a tool to reward investors to stay invested. If you are interested in investing in any of these companies, thorough research is recommended. You can take the first step by opening a Demat account.