This Company Will Soon Be Paying A Good Dividend Of Rs. 36/ Share
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oi-Roshni Agarwal
This company from the personal care segment has a good dividend track record and has been consistently paying dividends for the last 5 years. In an exchange filing, the company announced the outcome of its board meet held on august 24, 2021 and said that its audited financial results for the financial year ended June 30, 2021 have been approved.
Alongside, the board also recommended a dividend of Rs. 36 per Equity Share (Nominal Value of Rs. 10/- each), for the Financial Year ended June 30, 2021. The dividend shall be paid between November 27, 2021 to December 17, 2021, on approval of the Members at the 37th Annual General Meeting, said the filing. Note the dividend herein recommended is the final dividend pay-out.
If you could guess it, we here are referring to Gillette India Ltd., i.e. the country’s popular fast moving consumer goods (FMCG) company that owns leading brands like Gillette and Oral B. The company is also socially active and supports initiatives like education of underprivileged children in the country through programmes such as P&G Shiksha.
For the year ending June 2021, the company in all has declared an equity dividend of 1190 percent that amounts to Rs. 119 per share. Here is the quick break-up of the dividend for the June ended financial year:
| Dividend announcement date | Ex-date | Dividend type | Dividend % | Dividend in Rs. |
|---|---|---|---|---|
| 27.08.2021 | 15.11.2021 | Final | 360 | 36 |
| 27.04.2021 | 12.05.2021 | special | 500 | 50 |
| 28.02.2021 | 11.02.2021 | Interim | 330 | 33 |
Considering the above dividend, dividend yield for the counter turns out to be 2.0076% taking into account the last traded price of Rs. 5924.15.
Past dividend history of Gillette India
| Announcement Date | Ex Dividend Date | Dividend (%) | Dividend Type |
|---|---|---|---|
| 26/08/20 | 17/11/20 | 490 | Final |
| 22/08/19 | 18/11/19 | 250 | Final |
| 07/02/19 | 15/02/19 | 190 | Interim |
| 23/08/18 | 20/11/18 | 230 | Final |
| 24/08/17 | 06/11/17 | 100 | Final |
| 06/05/17 | 17/05/17 | 1540 | Special |
| 23/08/16 | 22/11/16 | 200 | Final |
Should you buy the Gillette stock for bagging a good dividend of Rs. 36/ share?
To be eligible for the dividend, you should be holding the shares of the scrip as on record date after which the stock turns ex-dividend that is the shareholders who buy the share on the ex-dividend date or post that will not be eligible for the declared dividend. Now as the ex-date for Gillette is still far away, you can give a thought for the same.
Note even though company has been consistently paying dividend, future dividends are not guaranteed as dividends are announced at the discretion of the firm and there remains no contractual obligation to declare/pay the same. So, for similar future stream of payment you surely cannot take position into the stock.
Also, companies paying out good dividends may be doing so, being mature players in their respective industries’, with limited options to park cash. Hence investor should not solely invest in a stock for good dividend or dividend yield, but look at these in conjunction with other metrics such as Return on Equity (ROE) and Return on Capital Employed (ROCE).
Other financials of Gillette India:
M-cap- Rs. 19314 crore
P/E TTM- 62.23
Sectoral P/E- 75.87
Book value per share- 242.14
P/B-24.28
52W Low/high- Rs. 5218/ Rs. 6275
RoE-39.33
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