A quote often glorified in dividend investment Its income is human, its dividends are divine.
This means that dividends are real money in the hands of the investor. People feel relief when they receive the extra money in the form of dividends.
I’ve heard stories of people explaining how they repay their monthly expenses from the dividends they receive.
Isn’t that great? Tens of thousands of rupees received as dividends to pay your bills!
Although dividend investing is always green stock market strategy and will continue to prevail in the years to come, it is all the more relevant in the current context where uncertainty reigns in the stock market.
There is not a single factor that generates uncertainty, but more and more problems that accumulate. The recession is the talk of the town.
To stay ahead of all of this, you need to focus on dividend-paying stocks.
Last month we did an article on companies that have announced the largest dividend payouts so far.
These companies included dividend payers such as Sanofi, Hindustan Unilever (HUL), Britannia, Bajaj Auto, Asian Paints and TCS.
Since then, a few companies have declared large dividend payouts. In this article, we will examine them.
Interestingly, these three companies have consistently increased their dividend payout ratio over the past five years.
#1 Power Grid Company
The first stock on our list is the public sector company Power Grid Corporation of India.
Power Grid was established in 1992 and is one of the largest public sector companies (PSU). From humble beginnings, it has grown at an extraordinary rate to quench India’s thirst for power.
The company falls under the Department of Energy and acts as a liaison between power generation companies, like NTPC, and power trading companies by routing electricity through its national grid.
Power Grid is India’s largest power transmission company with a market share of over 36%. When it comes to bringing renewable energy to every Indian’s home, it has a pivotal role to play in the decades to come.
Along with having monopoly status, the company has rewarded its shareholders with big dividends over the years.
Take a look at the company’s dividend history over the past few years.
For the year 2022, the company declared two interim dividends in December 2021 and February 2022 worth Rs 4 per share and 5.5 per share, respectively.
In December 2021, Power Grid also announced a special dividend of Rs 3 per share.
In addition to this, the company announced a final dividend of Rs 2.25 per share or 22.50%.
If we combine all this, it comes to Rs 14.75 per share. At the current price of Rs 210, this translates to a yield of almost 7%.
To find out more, see Power Grid Dividend Payout History.
Next on our list is software and consulting company Birlasoft.
Birlasoft is engaged in computer programming, consulting and related business. It provides software development and IT consulting to its clients mainly in banking, financial and insurance services.
It has a reputable customer base and strategic alliances with various business partners including Microsoft, Oracle, JD Edwards, SAP, Infor, AWS, Google, Salesforce, etc.
As IT stocks have fallen this year, Birlasoft has been no exception. Shares of the company have fallen sharply this year and are trading near their 52-week low.
Although the company’s investors are disappointed with recent performance, they will sigh with relief as the company has always paid dividends.
For this year, the company has already declared and paid an interim dividend of Rs 1.5 per share in November 2021.
In addition to this, Birlasoft has recommended a final dividend of Rs 3 per share, subject to the declaration of board members.
Now here’s the merry on the sundae. The company announced share buyback where he will buy shares at a high premium.
The company will buy back up to 7.8 million shares at a price of Rs 500. It is currently trading at Rs 330. That’s a premium of 52%!
#3 VST Industries
When you think of a tobacco stock that has always paid dividends and rewarded its shareholders, ITC is the first choice, hands down.
But did you know that there is another cigarette and tobacco company that constantly rewards its shareholders?
VST Industries Ltd was incorporated in 1930 as Vazir Sultan Tobacco Company.
The principal activities of the company are the manufacture and sale of cigarettes and unmanufactured tobacco.
He has expertise in all varieties of tobacco. Its R&D efforts include the development of quality blends with innovative filter variants for new brands. Its growth efforts include both expansion into geographies and new brands.
Speaking of dividends, VST Industries has a rich and long history, having paid out consistent and growing dividends since 1997.
Look at the table below.
For the financial year ending March 2022, the company declared a dividend of Rs 140 per share. This is the highest dividend declared by the company.
The book close and record date for the same are July 15, 2022 and July 29, 2022, respectively.
Did you know that ace investor Radhakishan Damani has a substantial stake in VST Industries?
According to the March 2022 shareholding of VST Industries, the billionaire investor through his companies and his own account, owns 32.3% of the capital.
Although the company has good fundamentals, it underperformed due to ESG concerns.
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Disclaimer: This article is for information only. This is not a stock recommendation and should not be treated as such.
This article is syndicated from equitymaster.com
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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