Up to Rs 115 Per Share in Dividends: 5 Stocks Nearing 1,000% Dividend Payout Soon

For many investors, dividends are considered the most reliable source of income that keeps their portfolios ticking. These periodic payouts can be a strategy to generate higher returns and build true long-term wealth over time. As the earnings season ends, and with the financial year 2024 wrapping up, companies have started announcing final dividends. But what's different this time is companies are making bigger payouts due to the strong performance in the past year. In this article, we will look at five such stocks that have announced big payouts and their record dates that are getting closer.

State Bank of India (SBI)

First on the list is the State Bank of India (SBI). For FY24, the board of SBI declared a dividend payout of 1,370%, amounting to a dividend of Rs 13.7 per share. The company has fixed Wednesday, 22 May 2024, as the record date for determining eligible shareholders for payment of dividends. The same shall be paid on 5 June 2024. SBI has paid 23 dividends since 2001. Over the last 5 years, SBI has averaged a dividend of 448%. The five-year average dividend payout ratio stands at 10.4%. SBI is an Indian multinational public sector banking and financial services institution. It provides a wide range of products and services to individuals, commercial enterprises, large corporate public bodies, and institutional customers.

Colgate Palmolive (India)

Second on the list is Colgate Palmolive (India). The company's board has declared a second interim dividend of Rs 26 per share. The same will be recorded on 23 May 2024. In addition, the board has also declared a one-time special interim dividend of Rs 10 per share owing to the excellent performance for 2023-24. Colgate Palmolive (India) has paid 34 dividends since 2001. The five-year average dividend payout ratio stands at 44.8%. Over the last 5 years, Colgate Palmolive has averaged a dividend of 994%. Colgate Palmolive is an FMCG company that has maintained its leadership since 1990. Colgate has over 51% market share in toothpaste, 48% in tooth powder, and a 30% share in the toothbrush market.

Tata Consumer Products

Third on this list is Tata Consumer Products. For FY24, the board of Tata Consumer Products declared a dividend payout of 775%, amounting to a dividend of Rs 7.8 per share. The same will be recorded on 24 May 2024. Tata Consumer Products has continuously paid dividends since 2001. The five-year average dividend payout ratio stands at 45.5%. Over the last 5 years, Tata Consumer has averaged a dividend payout of 475% on its face value. Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company's portfolio of products includes tea, coffee, water, salt, pulses, spices, ready-to-cook offerings, breakfast cereals, snacks, and mini meals.

Stovec Industries

Fourth on the list is Stovec Industries. The board of Stovec Industries recently declared an interim dividend payout of 1,150%, amounting to a dividend of Rs 115 per share. The same will be recorded on 27 May 2024. Stovec Industries has paid 26 dividends since 2001. The five-year average dividend payout stands at Rs 45. The end-of-year dividend yield of Stovec Industries is 3%. Stovec Industries is engaged in the manufacturing and selling of textile machinery and consumables, graphics consumables, and galvanic screens. The company operates in three segments: textile machinery and consumables, graphics consumables, and galvanic.

Vedanta

Last on the list is Vedanta. The board of Vedanta recently declared an interim dividend payout of 1,100%, amounting to a dividend of Rs 11 per share. The same will be recorded on 24 May 2024. Vedanta has paid 41 dividends since 2001. The five-year average dividend payout ratio stands at 79.2%. Over the last 5 years, Vedanta has averaged a dividend of 3,575% on its face value. Vedanta is a diverse natural resource company that explores, extracts and processes minerals as well as oil and gas. The company explores, produces, and sells zinc, lead, silver, copper, aluminum, iron ore, and oil and gas. Vedanta's other businesses include commercial power generation, steel manufacturing, and port operations in India, as well as glass substrate manufacturing in South Korea and Taiwan.

Conclusion

The idea of getting regular income from your investments is tempting, but one should remember greed is not good. An investor should keep in mind that the promise of regular returns should not come at the cost of potentially losing your investment capital. Hence, high dividend-paying stocks might seem like cash machines at first glance, but a closer look is crucial. Before you jump in, understand the companies, dig into their financials, and consider your overall investment goals. A high dividend can be a great bonus, but it shouldn't be the only factor driving your decision. So, do your homework, and find the dividend stocks that fit your long-term financial strategy. Happy investing!