5 Stocks Declaring More Than 900% Dividend in July 2023

With corporate India continuously rewarding its shareholders with big dividend payouts, investors have long relied on dividends as a stable source of passive income in the ever-changing Indian stock market.

Within this dynamic landscape, a select group of companies consistently stand out by delivering impressive dividend payouts. These companies not only exhibit the ability to navigate market volatility successfully but also prioritise sharing their profits with their shareholders.

Given these advantages, it's no wonder that dividend investing holds significant importance in many investors' strategies.

Let's explore five stocks that have declared dividends exceeding 900% in July 2023.

#1 Bosch

Leading the list is Bosch.

For the financial year 2023, the board of Bosch has declared a dividend of Rs 280 or 2,800% on the face value of Rs 10 per share.

The record date for the same is fixed as 14 July 2023.

Bosch has remained a consistent dividend payer. Since 2001, the company has declared 29 dividends.

The five-year average dividend payout ratio stands at 50.9%. The dividend yield over the past five years has averaged 0.9%.

Bosch is a top provider of goods and services in energy and building technology, consumer goods, industrial technology, and mobility solutions. The company is the Indian subsidiary of the German company Bosch.

In India, the company operates in four business sectors: Industrial Technology, Mobility Solutions, Consumer Goods, and Energy and Building Technology.

For more details, see the Bosch's financial factsheet and latest quarterly results.

Bosch's Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	103.4	105	105	115	209.9
Dividend payout ratio (%)	22.3	19.4	47.7	70.6	50.9
Dividend Yield (%)	0.6	0.6	1.1	0.8	1.3

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#2 Abbott India

Second, on the list is Abbott India.

The company's board has declared a total dividend of 2,750% on the face value of Rs 10 each for the financial year 2023, or Rs 275 per share. This includes a final dividend of 1,800% or Rs 180 per share and a special dividend of 1,400% or Rs 145 per share.

The record date for the same is 21 July 2023.

The company has maintained a good record of dividends and consistently declared dividends for the last five years. It has declared a total of 27 dividends since 2001.

The five-year average dividend payout ratio stands at 61.4%. The dividend yield over the past five years has averaged 1.4%.

Abbott India is engaged in the discovery, development, manufacturing, and market innovation of products and services in the pharma sector. It is one of the largest and fastest-growing MNCs in the pharma sector.

The company offers a variety of products in diagnostics, medical devices, nutrition products, and branded generic medicines.

For more details, see the out Abbott India's financial factsheet and latest quarterly results.

Abbott India's Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	55.0	65.0	250.0	275.0	275.0
Dividend payout ratio (%)	29.1	30.7	89.6	84.6	73.2
Dividend Yield (%)	1.1	0.9	2.1	1.7	1.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#3 Hero MotoCorp

Third on the list is Hero MotoCorp.

Hero MotoCorp announced a dividend of Rs 35 per equity share of face value Rs 2 (1750%) for the financial year 2023.

The record date for the same is 28 July 2023.

In the last five years, Hero MotoCorp has consistently made dividend payments. It has declared a total of 38 dividends since 2001.

The five-year average dividend payout ratio stands at 60.6%. The dividend yield over the past five years has averaged 3.9%.

Hero MotoCorp, formerly known as Hero Honda, is an Indian motorcycle and scooter manufacturing company. It is the largest two-wheeler manufacturer in the world. It holds 37% of the share in the two-wheeler category.

The company is about to enter India's EV (Electric Vehicle) space with the brand Vida.

For more details, see the Hero MotoCorp's financial factsheet and latest quarterly results.

Hero MotoCorp's Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	94.9	86.9	89.9	104.9	94.9
Dividend payout ratio (%)	51.7	51.0	49.6	70.3	81.5
Dividend Yield (%)	2.7	3.4	5.6	3.6	4.1

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#4 Lakshmi Machine

Last on the list is Lakshmi Machine.

The company, for the financial year 2023, has declared a dividend of Rs 98.5 per share, which is 985% on the face value of Rs 10 each.

The record date for the same is 24 July 2023.

With a good history of dividend payouts, the company has declared 26 dividends since 2001.

The average dividend payout ratio for five years stands at 25.3%. The dividend yield over the past five years has averaged 0.4%.

Lakshmi Machine Works, a leading textile machinery manufacturer in India and one among the three in the world to produce the entire range of spinning machinery.

For more details, see the Lakshmi Machine company fact sheet and quarterly results.

Lakshmi Machine's Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	41.0	35.0	10.0	10.0	40.0
Dividend payout ratio (%)	20.4	20.2	38.5	24.0	23.6
Dividend Yield (%)	0.6	0.6	0.4	0.1	0.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#5 Swaraj Engines

Last on the list is Swaraj Engines.

For the financial year 2023, the board of Swaraj Engines has declared a dividend of Rs 92 or 920% on the face value of Rs 1 per share. The record date for the same is fixed as 8 July 2023.

The company strongly believes in sharing profits with its shareholders, and it's reflected in its dividend history.

In its 20 years of rich dividend-paying history, the dividend payout ratio was never less than 50%. Since 2000, the company has declared 30 dividends.

The five-year average dividend payout ratio stands at 79.4%. The dividend yield over the past five years has averaged 4.4%.

Swaraj Engines is an India-based company engaged in the business of diesel engines, diesel engine components and spare parts.

For more details, see the Swaraj Engines company fact sheet and quarterly results.

Swaraj Engines' Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	49.9	49.9	39.9	68.9	79.9
Dividend payout ratio (%)	75.7	73.6	68.3	90.5	88.7
Dividend Yield (%)	2.5	3.6	4.4	5.3	6.1

*Adjusted for bonus issues and stock splits
Source: Equitymaster

To conclude

Dividend paying stocks usually pay a dividend at a growing rate. This increases the amount of passive income every year.

Dividends also act as a defensive strategy during market downturns, as they exhibit more stability compared to non-dividend-paying stocks.

It's important to note that while dividend stocks can provide a level of defensiveness, they are not immune to market fluctuations. They can still experience declines in value during severe market downturns or company-specific challenges.

Thus, it's essential to conduct thorough research, assess the financial health of the company, and diversify your investment.

If you want to dig deeper, use Equitymaster's stock screener to check high dividend yield stocks and the best dividend stocks to buy.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...