Several companies issue dividends regularly, which makes their stocks attractive to investors. Dividends, big or small, are always good news for investors, as they increase the value of their investment and allow them to earn income.
Dividends are a portion of the company’s profit that it distributes among its investors. Usually announced by large companies, dividends are incentives paid by corporations to investors for investing in their stocks.
Benefits of dividends
- Companies make their stocks attractive to investors by announcing dividends.
- These stocks allow investors to benefit in two ways: by earning an income from the company’s dividend and through appreciation of the stock price.
- Dividends allow investors to offset losses they might have incurred if the share price had fallen.
- Dividends are usually given out by large companies, which are financially stable and comparatively less risky.
- Dividend stocks help with diversification and add stability to your portfolio.
List of Upcoming Paying Stocks in May 2023
|Company name||Dividend type||Dividend %||Announcement date||Record date||Ex-bonus date|
|Rallis India||Final||250.00||April 25, 2023||NA||May 30, 2023|
|Trent||Final||220.00||April 27, 2023||May 25, 2023||May 25, 2023|
|Tata Consumer Products||Final||845.00||April 25, 2023||NA||May 19, 2023|
|GM Breweries||Final||60.00||April 04, 2023||NA||May 16, 2023|
|HDFC Bank||Final||1900.00||April 17, 2023||May 16, 2023||May 16, 2023|
|Tata Coffee||Final||300.00||April 18, 2023||NA||May 15, 2023|
|Indiamart Intermesh Ltd.||Final||200.00||April 28, 2023||May 11, 2023||May 11, 2023|
|Kiwal Kiran Clothing Ltd.||Interim||20.00||April 27, 2023||May 11, 2023||May 11, 2023|
|Laurus Labs Ltd.||Interim||60.00||April 27, 2023||May 10, 2023||May 10, 2023|
|Coforge Ltd.||Interim||190.00||April 27, 2023||May 10, 2023||May 10, 2023|
|Oracle Financial Services Software||Interim||4,500.00||April 26, 2023||May 09, 2023||May 09, 2023|
|Ramkrishna Forging Ltd.||Interim||25.00||April 10, 2023||May 09, 2023||May 09, 2023|
|Castrol India Ltd.||Final||70.00||February 13, 2023||May 04, 2023||May 04, 2023|
|CRISIL||Interim||700.00||April 04, 2023||May 04, 2023||May 04, 2023|
|Stovec Industries Ltd.||Final||470.00||February 28, 20233||NA||May 02, 2023|
What is Dividend yield?
The dividend yield is a financial ratio that investors use to identify high dividend-paying stocks. It expresses dividends as a percentage paid to the shareholders against the market value per share. Using the dividend yield ratio investors can compare between dividend paying stocks for the same investment amount.
Investing in dividend stocks is a tried and tested method for wealth accumulation. Besides the dividend yield ratio, keeping the following factors in mind will help you select the best dividend stocks.
Companies that announce dividends usually have a history of long-term profitability and earnings. These are stable companies with earnings growth expectations ranging from 5–15%.
The dividend-paying company must have enough cash flow to support dividend payment programs, which includes a lower debt burden. Companies with a higher debt-to-equity ratio (more than 2) might not be able to sustain their growth in the long run.
Lastly, a company can pay dividends even when its stock price decreases, but the trend might not sustain itself in the long run. While investors look into the company’s fundamentals while investing, educating yourself on broader industry trends is a smart idea. You can expect the chosen company to thrive while the economy and the particular sector are promised growth.
Dividends are a form of income from your equity investment. However, the dividend payment is not guaranteed. It depends on the company’s performance in the year or its business strategy. Moreover, a scrip dividend is when the company pays dividends via additional stocks to existing investors. If the news of dividend payouts has piqued your interest, you can start investing in them by opening a Demat account with Angel One.