Top 5 Dividend Stocks to Watch in September 2024 for Consistent Income

When venturing into the stock market, many investors focus on buying low and selling high to capture profits. But what if you could earn a steady income without selling your shares? That’s where dividends come into play. Dividends offer a unique opportunity for investors to generate consistent returns while holding onto their stocks.

Understanding Dividends

Dividends are payments made by companies to their shareholders, usually in the form of cash or additional shares. They represent a portion of the company’s earnings and are a way for companies to share their profits with investors. Unlike growth stocks that primarily aim for price appreciation, dividend stocks provide a stable income stream and the potential for capital gains.

For investors looking for a balanced approach between income and growth, dividend-paying stocks are an attractive option. Here are five stocks you should watch out for in September 2024, as they are expected to pay dividends.

1. Gulf Oil Lubricants India Ltd.

Leading the list is Gulf Oil Lubricants India Ltd. The company’s board announced a final dividend of ₹20 per equity share (1,000% on the face value of ₹2 per equity share) for the financial year 2023-2024. The record date for this dividend is set for September 5, 2024.

Earlier in the year, Gulf Oil Lubricants declared an interim dividend of ₹16 per share, bringing the total dividend for FY24 to ₹36 per share. This marks the company’s 18th dividend declaration since 2014, solidifying its reputation as a reliable dividend-paying stock.

Gulf Oil Lubricants is a key player in the Indian market, involved in the manufacturing, marketing, and trading of automotive and industrial lubricants. It ranks among the top three private lubricant companies in India.

2. AGI Greenpac Ltd.

Next up is AGI Greenpac Ltd., which has declared a 300% dividend amounting to ₹6 per share for FY24. The record date for this dividend is September 12, 2024, offering investors a timely opportunity to benefit from this payout.

AGI Greenpac, formerly known as HSIL, has a strong dividend history, with 27 payouts since 1997. The company has maintained an average dividend yield of 1.7% over the past five years, making it a stable choice for dividend-seeking investors.

As India’s largest sanitary ware manufacturer, AGI Greenpac operates in diverse segments, including building products, glass packaging, plastic packaging, consumer products, and retail. Its consistent dividend payments reflect the company’s robust financial health and commitment to returning value to shareholders.

3. TV Today Network Ltd.

TV Today Network Ltd. Is another stock to consider for dividend income in September 2024. The company has declared a 170% dividend, amounting to ₹8.5 per share, with a record date of September 11, 2024. At the current share price, this translates to a dividend yield of 3.2%.

TV Today Network has a solid dividend track record, with 23 payouts since 2004. The company has consistently declared dividends over the past five years, with an average dividend payout ratio of 135.9% and a dividend yield of 11.6%.

As a prominent player in India’s media industry, TV Today Network operates several popular news channels and radio stations under the India Today Group. The company's commitment to delivering consistent dividends makes it a reliable choice for income-focused investors.

4. Ion Exchange (India) Ltd.

Ion Exchange (India) Ltd. Is another stock worth watching in September 2024 for its dividend payout. The company has approved a final dividend of 150%, amounting to ₹1.5 per share, with a record date of September 4, 2024.

Ion Exchange has a strong dividend history, having consistently declared dividends over the past five years. The company’s five-year average dividend payout ratio stands at 2.9%, with a dividend yield averaging 0.6%.

Ion Exchange is a leader in the Indian water treatment industry, offering comprehensive water management solutions for industries, homes, and communities. The company’s extensive experience and diversified product range make it a reliable investment for those seeking dividend income.

5. Triveni Engineering & Industries Ltd.

Rounding out the list is Triveni Engineering & Industries Ltd. The company has declared a final dividend of 125%, equivalent to ₹1.25 per share, for the fiscal year 2023-2024. The record date for this dividend is September 6, 2024.

In addition to the final dividend, Triveni Engineering also paid an interim dividend of 225% and a special dividend of 225% earlier in the year. The company’s five-year average dividend payout ratio is 81.3%, with an average dividend yield of 1.5%.

Triveni Engineering & Industries is a diversified conglomerate with businesses in sugar production, ethanol manufacturing, power co-generation, and industrial gears. The company’s strong financial performance and commitment to shareholder returns make it an attractive option for dividend investors.

Conclusion: Why Dividends Matter

Investing in dividend-paying stocks can be a lucrative strategy, offering regular income and potential capital appreciation. Special dividends, in particular, provide an additional income stream and often signal a company’s financial strength. However, it’s essential to approach these investments with caution, as dividend sustainability can vary.

Before investing, it’s crucial to conduct thorough research, assess the financial health of the company, and consider the potential risks. Diversifying your investments can also help mitigate the risks associated with dividend volatility.