5 Stocks to Watch Out for Upcoming Dividends in February 2024

The major indexes gave investors a taste of the downs and ups of investing over the past couple of years, reaching into bear territory in 2022 and then rising in the double digits last year.

It's impossible to predict with certainty what the market will do this year.

In any case, there's a type of stock that could offer great rewards no matter what the market is doing.

We are talking about dividend stocks, which pay you passive income each year just for owning them.

In bull markets, you'll often benefit from these stocks' market performance and the extra income and in more difficult times, the dividend payments alone could bolster your portfolio.

Here are the top 5 stocks to watch out for upcoming dividends in February 2024.

#1 CESC

First on the list is CESC.

The company's board of directors, on 21 January 2024, declared an interim dividend of 450%, i.e., Rs 4.5 per share for the financial year 2023-24.

The company has fixed 1 February 2024 as the record date for payment of this interim dividend.

CESC has declared 21 dividends since December 2001.

The five-year average dividend payout ratio stands at 18.7%. The dividend yield over the past five years has averaged 5.5%.

CESC is India's first fully integrated electrical utility company ever since 1899, generating and distributing power in Kolkata.

It is an Indian electricity generation and the sole distribution company serving 567 square kilometres.

It also serves power distribution in Kota, Bikaner and Bharatpur in Rajasthan under the name CESC Rajasthan.

CESC's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	0.2	0.2	0.5	4.5	4.5
Dividend payout ratio (%)	2.1	2	4.4	42.5	42.7
Dividend Yield (%)	2.4	4.9	7.6	5.9	6.8

*Adjusted for bonus issues and stock splits
Source: Equitymaster

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

#2 Wendt

Second on the list is Wendt.

The board at its meeting convened on 21 January 2024, declared an interim dividend of 300%, i.e., Rs. 30 per equity share for the financial year 2024.

The record date for determining the members eligible to receive the aforesaid interim dividend is 1 February 2024.

Wendt has declared 35 dividends since 2001.

The five-year average dividend payout ratio stands at 44.8%. The dividend yield over the past five years has averaged 1.1%.

Wendt India is renowned for its robust product development and outstanding product portfolio, individualised technical assistance, and provision of technology solutions in grinding to its more than 750 direct domestic clients.

Wendt's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	30.0	25.0	30.0	65.0	80.0
Dividend payout ratio (%)	38.9	49.9	47.0	48.0	39.9
Dividend Yield (%)	1.0	1.4	0.9	1.3	0.9

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the Wendt (India) company fact sheet and quarterly results.

#3 Kewal Kiran Clothing

Third on the list is Kewal Kiran Clothing.

The board of directors in their meeting held on 20 January 2024, declared a 1st interim dividend @ 20%, i.e., Rs 2 per share on 61,625,185 equity shares of Rs 10 each for the financial year 2023-24.

The company has fixed 2 February 2024 as the record date for 1st interim dividend.

Kewal Kiran Clothing has declared 56 dividends since 2006.

The five-year average dividend payout ratio stands at 87.4%. The dividend yield over the past five years has averaged 4.6%.

Kewal Kiran Clothing is a menswear-focused apparel player with more than four decades of success-led journey.

With its integrated operations, comprising designing, manufacturing, branding, and retailing, the company has been able to penetrate through its targeted consumer base with its four menswear brands, Killer, Intergiti, Lawman, and Easies.

Kewal Kiran Clothing's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	6.8	8.6	4.6	19.0	5.0
Dividend payout ratio (%)	52.2	72.6	143.2	143.4	25.9
Dividend Yield (%)	2.7	6.8	2.6	9.5	1.2

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the Kewal Kiran Clothing company fact sheet and quarterly results.

#4 Balkrishna Industries

Fourth on the list is Balkrishna Industries.

Balkrishna Industries has announced an equity dividend of 800% at a face value of Rs 2 for the year ending in March 2023, or Rs 16 per share.

The dividend yield at the current share price of Rs 2,763.2 is 0.6%.

The record date for the same is 2 February 2024.

For the past five years, the firm has regularly handed out dividends and has a strong dividend track record. Balkrishna Industries has issued 54 dividends since 2002.

The five-year average dividend payout ratio stands at 32.5%. The dividend yield over the past five years has averaged 4.6%.

The company is engaged in manufacturing performance-focused tyres for the agricultural, construction, earthmoving, port, gardening, and mining industries.

It sells its tyres across the globe, covering over 160 countries with an extensive distribution network in India, Europe, America, and the rest of the world.

The company's client base includes reputed names such as John Deere, New Holland, JCB, CAT, and Turk Traktor.

Balkrishna Industries' Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	8.0	20.0	17.0	28.0	20.0
Dividend payout ratio (%)	20.0	40.3	27.9	37.7	36.6
Dividend Yield (%)	0.8	2.5	1.0	1.3	1.6

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the Balkrishna Industries company fact sheet and quarterly results.

#5 GAIL

Last on the list is GAIL.

As per the filing, the board of Angel One will meet on 29 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 6 February 2024 as the record date for payment of this interim dividend.

Since 2001, the company has declared 47 dividends.

The five-year average dividend payout ratio stands at 37.8%. The dividend yield over the past five years has averaged 5.1%.

GAIL (Gas Authority of India Limited) is a prominent Indian government-owned company specialising in the natural gas sector.

The company is a leader in this segment, with around 75% of its revenues coming from natural gas marketing.

Additionally, GAIL is involved in various segments, including petrochemicals, natural gas transmission, and LPG (liquefied petroleum gas), among others.

GAIL's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	2.8	4.4	3.4	6.8	5
Dividend payout ratio (%)	27.6	30.3	36.1	36.1	58.7
Dividend Yield (%)	2.3	8.4	3.7	6.4	4.8

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the GAIL 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...