• NSE UPCOMING DIVIDEND STOCKS’ LIST

Check out the list of dividend paying stocks in the coming times.

Company Name	DPS	Dividend %	Type	Date
				Announce	Ex-Div
Hinduja Global	Interim	50.00	14-11-2022	08-12-2022	07-12-2022
Panchsheel Org	Interim	8.00	14-11-2022	05-12-2022	05-12-2022
Som Distillerie	Interim	5.00	18-11-2022	02-12-2022	02-12-2022
Vedanta	Interim	0.00	17-11-2022	30-11-2022	29-11-2022
Family Care Hos	Interim	0.50	14-11-2022	28-11-2022	28-11-2022
Golechha Global	Interim	10.00	14-11-2022	25-11-2022	25-11-2022
Nile	Interim	20.00	11-11-2022	25-11-2022	25-11-2022
Premco Global	Interim	0.00	02-11-2022	25-11-2022	25-11-2022
Manaksia	Interim	0.00	03-11-2022	25-11-2022	25-11-2022
Ipca Labs	Interim	0.00	02-11-2022	23-11-2022	22-11-2022
Praveg Commu	Final	40.00	24-05-2022	21-11-2022	21-11-2022
Tide Water Oil	Interim	0.00	01-11-2022	22-11-2022	21-11-2022
Bella Casa	Interim	0.00	04-11-2022	21-11-2022	21-11-2022
Balkrishna Ind	Interim	0.00	07-11-2022	22-11-2022	21-11-2022
Mazagon Dock	Interim	0.00	01-11-2022	22-11-2022	21-11-2022
PPAP Automotive	Interim	0.00	07-11-2022	18-11-2022	18-11-2022
Astral Ltd	Interim	0.00	01-11-2022	21-11-2022	18-11-2022
Emami	Interim	0.00	18-10-2022	21-11-2022	18-11-2022
Hindustan Aeron	Interim	0.00	04-11-2022	21-11-2022	18-11-2022
La Opala RG	Interim	0.00	04-11-2022	21-11-2022	18-11-2022
Indag Rubber	Interim	45.00	07-11-2022	18-11-2022	18-11-2022
Maan Aluminium	Interim	10.00	31-10-2022	18-11-2022	18-11-2022
Info Edge	Interim	0.00	02-11-2022	21-11-2022	18-11-2022
Mindspace REIT	Interest	0.00	04-11-2022	21-11-2022	18-11-2022
Data Infra	ROC	0.00	07-11-2022	21-11-2022	18-11-2022
Data Infra RE	ROC	0.00	07-11-2022	21-11-2022	18-11-2022
Gabriel India	Interim	0.00	01-11-2022	18-11-2022	17-11-2022
MRF	Interim	0.00	27-10-2022	18-11-2022	17-11-2022
Oriental Carbon	Interim	70.00	07-11-2022	18-11-2022	17-11-2022
IRFC	Interim	0.00	31-10-2022	18-11-2022	17-11-2022
Quess Corp	Interim	0.00	02-11-2022	18-11-2022	17-11-2022
G R Infra	Interim	0.00	01-11-2022	18-11-2022	17-11-2022
Page Industries	Interim	0.00	17-10-2022	18-11-2022	17-11-2022
Vidhi Spec	Interim	0.00	04-11-2022	19-11-2022	17-11-2022
PDS	Interim	125.00	07-11-2022	18-11-2022	17-11-2022
RITES	Interim	0.00	03-11-2022	18-11-2022	17-11-2022
Bhagiradh Chem	Interim	10.00	01-11-2022	17-11-2022	16-11-2022
QGO Finance Lim	Interim	1.00	01-11-2022	16-11-2022	16-11-2022
CAMS	Interim	85.00	04-11-2022	17-11-2022	16-11-2022
Aegis Logistics	Interim	0.00	01-11-2022	16-11-2022	15-11-2022
Procter&Gamble	Final	115.00	29-08-2022	-	15-11-2022
Amara Raja Batt	Interim	290.00	03-11-2022	16-11-2022	15-11-2022
Coal India	Interim	150.00	04-11-2022	16-11-2022	15-11-2022
IndiGrid InvIT	ROC	0.00	03-11-2022	16-11-2022	15-11-2022
Gloster	Interim	500.00	31-10-2022	16-11-2022	15-11-2022
Brookfield REIT	ROC	0.00	03-11-2022	16-11-2022	15-11-2022
Jamna Auto	Interim	80.00	02-11-2022	15-11-2022	14-11-2022
Amrutanjan Heal	Interim	100.00	27-10-2022	15-11-2022	14-11-2022
SMC Global Secu	Interim	60.00	01-11-2022	15-11-2022	14-11-2022
EPL	Interim	107.50	28-10-2022	15-11-2022	14-11-2022
Power Grid Corp	Interim	50.00	27-10-2022	15-11-2022	14-11-2022
PowerGrid InvIT	Interest	0.00	01-11-2022	15-11-2022	14-11-2022
Ajanta Pharma	Interim	350.00	02-11-2022	14-11-2022	11-11-2022
GMM Pfaudler	Interim	50.00	21-10-2022	14-11-2022	11-11-2022
Siyaram Silk	Interim	200.00	28-10-2022	14-11-2022	11-11-2022
Nicco Parks	Interim	40.00	21-10-2022	14-11-2022	11-11-2022
Dalmia Bharat	Interim	200.00	21-10-2022	11-11-2022	10-11-2022

 

What is Dividend?

When a company declares its earned profits in its quarterly results, it may pass on a share of its earnings to shareholders. Shares are proportional to the number of shares owned by the individual. This is known as a dividend. A company pays dividends to make the shares attractive to investors and to retain them.

Net profit remains after deducting operating expenses, interest and taxes from the profit earned by any company. In this way the company can distribute Dividend or Dividend to its shareholders out of the profit which is left after deducting all the expenses.

How are Dividends given?

Dividend is given to the shareholders on the basis of the shares held by them. The amount of Dividend is declared per share, whoever has the number of shares will get the dividend.

Suppose SBI Bank announced a dividend of ₹ 1 per share. If you have a total of 1,000 shares in SBI Bank, then you will get a total dividend of ₹ 1 × 1,000 = ₹ 1,000.

Why Company Pay Dividend?

You have learned the dividend meaning above, now it comes to why a company gives dividend?

If a company makes a net profit in a financial year (F/Y), then the company can distribute dividend to its shareholders. If the company has to pay dividend, then the company announces it in its AGM.

If the company's business is established properly and they do not need additional money for further business expansion, then the management can distribute dividend out of the profit to the shareholders.

To give or not to give Dividend is entirely a decision of the management. If they want, even after making profit, they can use that money for some other purpose by not paying dividend.

Can loss making company pay dividend?

In most cases, the profit making companies pay the dividend. If a company has incurred losses in a financial year, although they have substantial cash reserves, then the company can pay dividend from its cash reserves.

How is Dividend Income Calculated?

A dividend is calculated by using the dividend payout ratio, wherein, the annual dividend per share is divided by earnings per share. The said ratio can be expressed as –

Dividend Payout Ratio = Dividends paid / Reported net income

Notably, the dividend payout ratio is 0% for those companies that do not offer dividends to their shareholders. Similarly, companies that pay out the total net income as dividends have a 0 dividend payout ratio.

Similarly, the retention ratio can be computed by dividing the dividend paid per share by earnings per share. The same can be expressed as –

Retention Ratio = Dividend per share / Earnings per share

With the help of the dividend payout ratio, one can conveniently find out the amount of money a company is offering to its shareholders. Further, the ratio comes in handy to calculate the amount that is reinvested for expanding and improving a company’s operations, paying off existing debt, or building a cash reserve.

It also proves useful in assessing a company’s sustainability. For instance, a company with a payout ratio that is more than 100% signifies that it is paying off more than what shareholders are earning. Eventually, such a practice would force a company to either reduce its offering or stop it altogether. On the other hand, a company with a steady dividend payout ratio indicates a robust financial standing.

How a Dividend works?

Dividend process (summary) –

• The company earns a net profit or maintains a healthy cash reserve.
• The management decides that instead of reinvesting some of the profit, it should be distributed among the shareholders.
• Dividend is approved by the Board of Directors.
• The company declares the dividend, in which the dividend per share, when the dividend will be paid and the record date declares.
• In the end, the dividend is paid out to the shareholders.

 

Conversely, business owners may decide to reinvest the excess earnings into their business to expand their operations or overall productivity. Subsequently, it must be noted that both retaining and paying off dividends tend to influence the financial model of a business venture.

Financial Statement	Impact
Balance Sheet	When paid out, it reduces aggregate cash and retained earnings.
Cash Flow Statement	It is reported as a use of cash under the financing activities section.
Statement of Retained Earnings	Here, it is reported as a decrease in retained earnings.
Income Statement	No impact.

When are stock dividends paid out?

Below are some important dates that need to be noted:

1. Declaration Date: This is the date on which the company declares the dividend. This includes the dividend amount, ex-dividend date and payment date.

2. Record Date: This is the date by which the company must record the investor. Only shareholders on record are entitled to dividend payments. To be eligible to be added to the company's books, the stock must be purchased at least two days prior to the record date.

3. Prior Date: This is usually before the record date. If you buy the shares on or after the earlier date, you are not eligible to receive the dividend. It is up to the Indian stock exchanges to set this pre-date.

4. Payment Date: This is usually one month before the record date. The declared stock dividend is paid on the payment date.

Types of Dividend

The company can reward its shareholders by giving dividend in many ways. like -

• Cash Dividend
• Stock Dividend
• Property Dividend
• Scrip Dividend
• Liquidating Dividend

But out of all these methods, cash dividend is the most popular and most of the companies distribute dividend only through cash dividend. A company can distribute cash dividend in two ways –

1. Interim Dividend: If a company declares dividend during a financial year before the release of its final financial statements, then it is called Interim Dividend.

Interim Dividend is given out of the company's retained profit or cash reserve.

2. Final Dividend: Final Dividend is the dividend declared by a company after the release of the final financial statements of the financial year.

In this, the company has to compulsorily put some part of its profit in surplus.

How do you get Dividend?

Many new investors get confused that dividends come in the balance of their trading account.

Dividend is always credited to the bank account linked to your demat account. If your demat account is in X and your demat account is linked with Y Bank then you will get dividend in your Y bank account.

What is the effect of dividend on share price?

• On April 1, SBI, which is operating at a market price of ₹100, declared a dividend of ₹5.
• The ex-dividend date is 26 April 2021.
• Now here the price will increase from ₹ 100 to ₹ 105 on the dividend announcement date.
• The ex-dividend date which is 26th April 2021 will be reduced by ₹5 from the current market price of the share.
• If the CMP is running at ₹115 then the new market price will be ₹110.

This is done so that no one can take the wrong advantage of declaring dividend. The price is reduced on the ex-dividend date because even if someone buys shares from this date, he does not get the dividend.

What is Dividend per Share?

DPS shows how much dividend the company has promised to pay per share.

DPS = Total Dividend Total Number of Shares

What is Cum Dividend and Ex. Dividend?

If an investor buys shares before ex. dividend date, then he is entitled to receive the dividend, this is called Cum Dividend.

The investor who buys shares on or after the ex. dividend date, then he does not have the right to receive dividend, it is called Ex. Dividend says.

Dividend Payout Ratio vs Dividend Yields

A dividend payout ratio tends to indicate the portion of a company’s net earnings that are offered as dividend income. Similarly, a company’s dividend yield highlights the rate of returns that were made available to the shareholders in the form of cash dividends.

Regardless, dividend payout is regarded to be a more useful indicator of a company’s ability to allocate dividends among its shareholders sustainably. Also, it is largely associated with a business venture’s cash flow and further highlights the amount it has paid as dividends in a year. Notably, even the slightest increase in share prices tends to lower the rate of dividend yield significantly.

Consequently, the dividend yield is calculated using the given formula.

Dividend Yield = Annual dividends per share / Dividends per share

Dividend Stocks

Dividend stocks can be defined as those publicly-listed companies which offer regular dividends to their shareholders. Such companies are mostly well-established and tend to possess a fair record of allocating earnings to their shareholders.

Things to consider for choosing a profitable dividend stock –

1). The company stock should at least have a dividend payout ratio of 50%.
2). Overall dividend yield should be between 3% and 6%.
3). The company should have a fair track record when it comes to offering dividends and paying off debts.

Keeping these points in mind, along with other financial parameters, will help gauge a company’s profitability and financial standing effectively.

 

• NSE TOP DIVIDEND STOCKS’ LIST

 

Check out stocks offering high dividend yields.

Company Name	Last Price	Latest  Div%	Dividend Yield  % at these Prices
			52 high	52 Low	Current
Vardhman Acryli	51.80	250.00	29.90	57.67	48.26
INEOS Styro	851.35	2,970.00	15.79	42.06	34.89
Hinduja Global	1,275.40	2,200.00	11.22	26.00	17.25
IOC	66.30	114.00	12.09	17.48	17.19
REC	91.90	153.00	12.08	18.60	16.65
Vedanta	287.85	4,500.00	10.21	21.84	15.63
Indian Card	205.55	250.00	7.53	14.93	12.16
Power Finance	102.05	120.00	7.80	12.36	11.76
GAIL	85.10	100.00	8.65	12.05	11.75
SAIL	77.90	87.50	6.64	13.76	11.23
NMDC	132.35	1,474.00	8.41	14.80	11.14
Banco Products	181.10	1,000.00	7.41	16.93	11.04
Goodyear	1,015.85	1,000.00	8.30	12.77	9.84
HUDCO	36.05	35.00	7.49	11.44	9.71
ALLSEC Tech	465.80	450.00	6.02	10.71	9.66
NALCO	70.00	130.00	4.90	9.71	9.29
Savita Oil Tech	290.15	250.00	6.06	13.41	8.62
Sanofi India	5,743.70	4,900.00	5.80	8.55	8.53
ONGC	127.60	210.00	5.39	8.76	8.23
PNB Gilts	60.80	50.00	6.46	8.71	8.22
PDS	305.20	238.50	5.84	9.54	7.81
Oil India	186.35	142.50	4.66	8.49	7.65
Renaissance	111.45	85.00	3.90	7.87	7.63
Coal India	236.35	170.00	7.07	12.22	7.19

Lastly, it can be said that potential investors who wish to invest in high-dividend yielding stocks must become familiar with the concept of dividends beforehand. Successively, they should take into account the various factors and associated financial parameters for gauging the scope of generating profits by investing in such stocks. Make sure to check the dividend stock list for different shares before finalizing investment.