3 Stocks to Watch Out for Upcoming Dividends in January 2024

The Indian stock market is on a tear, with key indices scaling new heights like never before. The Sensex and Nifty have galloped ahead, leaving investors breathless with excitement.

Amid this thrilling rally, it's important to remember the hidden gems, dividends, the silent heroes offering double the delight.

While capital appreciation takes centre stage, dividend-paying stocks offer a unique advantage in this soaring market: a steady stream of income, like a sweet bonus on top of the capital gains.

The big challenge will be finding the right dividend stocks at the right time.

Here are 4 stocks to watch out for upcoming dividends in January 2024.

#1 HCL Technologies

First on the list is HCL Technologies.

The board of directors announced on 15 December 2023 that the tech giant HCL is anticipated to declare an interim dividend on 12 January.

The company has fixed 19 January 2024 as the record date for payment of this interim dividend.

Before this, in October 2023 and July 2023, the company had declared an interim dividend of Rs 12 and Rs 10 per share.

Ever since the financial year 2013-14, the company has paid dividends consistently during all quarters, and the last quarter of the last financial year is no exception.

This IT company has a knack for declaring big consecutive dividends. Since 2000, the company has declared 87 dividends in total.

The five-year average dividend payout ratio stands at 46.3%. The dividend yield over the past five years has averaged 2.4%.

HCL Technologies (formerly Hindustan Computers Limited) is an Indian multinational information technology services and consulting company headquartered in Noida.

It emerged as an independent company in 1991 when HCL entered into the software services business.

HCL Technologies' Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	4	10	10	42	48
Dividend payout ratio (%)	10.7	24.5	24.3	84.3	87.7
Dividend Yield (%)	0.7	2.3	1	3.6	4.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, check out HCL Technologies factsheet and quarterly results.

#2 Angel One

Second on the list is Angel One.

As per the filing, the board of Angel One will meet on 15 January to consider financial statements for the period ending December 2023. The board will also likely consider and approve a proposal for dividend distribution.

The company has fixed 23 January 2024 as the record date for payment of this interim dividend.

Before this, in July 2023, the company had paid an interim dividend of Rs 9.3 per share.

Since 2020, the company has declared 14 dividends.

The five-year average dividend payout ratio stands at 31.1%. The dividend yield over the past five years has averaged 1.9%.

The company is a diversified financial services company. Its financial products and service offerings include broking services, research services, and investment advisory.

It also has a margin trading facility, loan against shares, distribution of third-party financial products and investor education.

The entire client base of the company is retail and has no exposure to institutions.

Angel One's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	2.3	2.3	12.5	26.8	39.6
Dividend payout ratio (%)	24.3	22.4	35.3	35.9	37.3
Dividend Yield (%)	0	0	4.4	1.8	3.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, check out Angel Broking company fact sheet and quarterly results.

#3 Ksolves India

Last on the list is Ksolves India.

The company will meet on 18 January 2024 to discuss various matters, including potential dividends.

The record date for the same is set as 26 January 2024.

Earlier this year, the board of directors of Ksolves India Ltd on 15 October considered and declared 1st interim dividend of Rs 7 per share.

Since 2021, Ksolves India has paid 9 dividends in total.

The five-year average dividend payout ratio stands at 45.9%. The dividend yield over the past five years has averaged 2.2%.

With a presence in over 12 countries, Ksolves India provides services to all kinds of businesses, from start-ups to small-sized and mid-sized companies.

Ksolves India is an expert in Apache Spark, Apache Cassandra, Apache NiFi, Salesforce, Machine Learning, Artificial Intelligence, OpenShift, Microservices, Penetration Testing, DevOps, etc.

Ksolves India Dividend History (2019-23)

	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	0	5	5.8	15.5
Dividend payout ratio (%)	0	66.3	42.9	74.3
Dividend Yield (%)	0	5.7	1.6	3.5

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more, check out Ksolves India company fact sheet and quarterly results.

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...