1. Bajaj Steel:
Nagpur based entity on June 29, 2021 announced a final dividend of 60 percent amounting to Rs. 3 per share for the Fy 21. For the said dividend the stock shall turn ex-dividend today i.e. December 2, 2021, while the record date is December 4.
The company has been consistently paying dividend and considering the last dividend and the current market price of Rs. 825 per share, dividend yield comes to be barely 0.36 percent.
Established in 1961, the Nagpur based company is the only company globally that is into manufacturing machineries for all of the cotton grinning technologies, all pressing technologies, Up Packing & Horizontal Packing, as well as Seed Cleaning, Delinting & Decorticating, other than general engineering fabrication, machining, intelligent electrical panel manufacturing and various other engineering activities.
2. Coal India:
The mining and minerals PSU major on November 23, 2021 announced an interim dividend for the FY22 of 90% amounting to Rs. 9 per share of the face value of Rs. 10. This is higher in comparison to Rs. 7.5 apiece announced last year. For the Fy21 considering the dividend pay-out of 160% (Rs. 16 per share) and current share price of Rs. 156.55, the scrip’s dividend yield turns out to be an impressive 10.22%. Since 2011, the company has declared dividend 19 times.
For the Fy22 interim dividend, the stock shall turn ex-dividend on December 6, while record date for it is December 7. “The date of payment of ‘Interim Dividend’ is ‘on and from 21st Dec’ 2021′”, said the company’s exchange filing.
Edelweiss and Motilal Oswal have signalled a ‘Buy’ on the scrip of Coal India for a price target of up to Rs. 210 per share.
The PSU entity is the biggest coal producing company globally. Other products of the company include non-coking coal as well as coking coal of different qualities for varied purposes. The company primarily caters to thermal power producing entities, steel and cement producers as well as other industrial organisations.
3. TT Ltd.:
This textiles-hoisery and knitwear company informed that in its meeting held on December 1, the company’s board has approved interim dividend payment @ 10% i.e. Rs. 1 per share for the fiscal year 2022. Record date for the dividend is Decmeber 10, 2021. “The said interim Dividend will be credited / dispatched to all shareholders within 30 days from date of declaration”, added the release.
TT Ltd. Is the flagship company of th T.T. Group. The company from the knitwear segment was the first to go public. The company offers the complete range of textile sector including yarn, fabric, cotton, garments and accessories.
4. Oriental Aromatics:
This chemicals company declared an interim dividend of 30 percent for the Fy 22. Ex-dividend and record date for the same is December 9 and December 10, respectively. The interim dividend amounts to Rs. 1.5 per share. Last fiscal year the company declared a dividend of Rs. 2.5 per share. The closing price of the scrip as on December 2, 2021 has been Rs. 769.20 per share. For the last several years, the company has been consistent in paying out dividends.
Formerly known by the name Camphor and Allied Products is the world’s top integrated companies with 4 major divisions within its business namely camphor, flavour, fragrance and aroma chemicals.
5. BNK Capital Markets:
The company from the financial market space announced a final dividend of 25% amounting to Rs. 2.5 per share. Record date for the same is December 10, while the company shall go ex-dividend on December 9, 2021. The announcement in respect of the dividend was made on June.
The company has been consistent in paying dividend. BNK Capital is an NBFC firm engaged in financial activities such as investment banking, corporate finance distribution business and other advisory related services. Under its boutique based service oriented business model, the company’s offering encompass equity Broking ,Commodities Broking ,Currencies Broking ,Internet Based Trading in Securities, Commodities and Currencies ,Depository Services, Wealth Management Services, Distribution of Financial Products, Corporate Finance and Advisory and Research.
Should you be buying shares ahead of dividend declaration?
Though investors can be lured to buy into a stock ahead of its dividend declaration and sell it off after the dividend pay-out, the same is not recommended. However this in itself is a strategy referred to as ‘dividend stripping’. Herein investors stand to benefit by way of tax benefits. Notably, upon dividend pay-out, the company’s share price falls and for the investor who sells the scrip post the share price fall implies that he or she can book capital loss. And this can further be set-off against income and help lower down the investors’ net tax payable amount.
Further if not for taxation advantage, one needs to be diligent in picking dividend paying stocks as one can choose:
1. Dividend paying stocks with a dividend yield of over 3 percent.
2. Dividend pay-out should be over 40 percent i.e. the proportion of earnings that the company pays out to its shareholders.
3. Choose on a dividend paying scrip with a clearly drawn dividend policy.
Disclaimer:
In the article we have just collated the stocks that will be making dividend in some time as their record date falls in the month of December. Remember from the record date it usually takes a month time for dividend to be credited into your account. As say for BPCL the record date was September 16 and the dividend of Rs. 58 per share was credited on October 25, 2021.
Further, note the story above listing stocks paying dividends in due time, should be considered as a call to invest in these stocks, investors need to engage in their own due diligence and research.
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