5 Stocks Declaring Big Dividends in February 2023

Indian share markets are off to a difficult start in 2023. Sentiment was already weak over worries of high inflation, but it was further dampened by the sharp selloff in Adani group stocks.

The recent selloff has pushed Indian market out of the world's top five stock markets.

This anxiety has made the near-term performance of equities, exchange-traded funds (ETFs), and fixed-income assets hazy.

In light of the uncertainty, how does one manage his/her portfolio? One way could be dividend stocks.

Dividend gives extra passive income, and while it doesn't eliminate the effect of inflation entirely, it does lessen their severity.

The main problem is identifying the best dividend stocks.

For starters, check out this list of stocks which are declaring big dividends in February 2023.

Before we move on to the stocks, you can also take a look at stocks listed in this article: Top 5 Dividend Stocks to Watch Out for in February 2023.

#1 Vedanta

First on the list is Vedanta.

For the financial year 2023, Vedanta recently declared a fourth interim dividend of Rs 12.5 per share. This was on the back of a 15% sequential rise in the profit to Rs 30.9 billion (bn) and steady operational performance in a challenging macroeconomic environment in the December 2022 quarter.

The record date for the same is fixed as 4 February 2023.

The total dividend declared for the year has shot up to Rs 81 per share, including the 4th interim dividend.

Vedanta has remained a consistent dividend payer. Since 2001, the company has declared 38 dividends.

The five-year average dividend payout ratio stands at 38.7%. The dividend yield over the past five years has averaged 7.9%.

Vedanta's dividend yield is the highest compared among its peers. For a detailed comparison, check out Vedanta vs NALCO - Which is the better dividend stock?

And for more details, check out the Vedanta company fact sheet and quarterly results.

Vedanta's Dividend History

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	21.2	18.9	3.9	9.5	45
Dividend payout ratio (%)	57.6	72.3	-30.6	23.5	70.6
Dividend Yield (%)	7.6	10.3	6	4.2	11.2

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#2 Sundaram Clayton

Second on the list is Sundaram Clayton.

The company's board has declared an interim dividend of Rs 59 per share for the financial year 2023. This dividend is due to a two-fold jump in the standalone net profit for the December 2022 quarter to Rs 341.8 m.

The record date for the same is 8 February 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 45 dividends since 2001.

The five-year average dividend payout ratio stands at 8.8%. The dividend yield over the past five years has averaged 1.1%.

Sundaram-Clayton is part of the TVS Group, one of the largest automotive and auto components manufacturing and distribution groups in India.

The company is a leading supplier of aluminium die castings to the automotive and non-automotive sectors. It manufactures non-ferrous gravity and pressure die castings.

For more details, check out the Sundaram Clayton company fact sheet and quarterly results.

Sundaram Clayton's Dividend History

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	15	36	31	26	44
Dividend payout ratio (%)	4.8	9.8	10	8.8	10.8
Dividend Yield (%)	0.3	1.2	2.1	0.8	1.2

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#3 Sun Pharma

Third on the list is Sun Pharma.

Sun Pharma, for the financial year 2023, has declared an interim dividend of Rs 7.5 per share on the back of higher sales in India and the US markets.

It also saw an uptick in the global speciality portfolio, driving the profit higher by 5.2% to Rs 21.6 bn in the December 2022 quarter.

The record date for the same is 8 February 2023.

With a good history of dividend payouts, the company has declared 27 dividends since 2001.

The average dividend payout ratio for five years stands at 42.3%. The dividend yield over the past five years has averaged 0.9%.

The company is a top player in the pharma sector, not just in India but in international markets too.

Sun Pharma is the fourth largest speciality generic pharmaceutical company in the world. It currently has a global footprint across 100+ countries, offering a product portfolio of 300+ pharma brands, 29 of which regularly feature in the top pharma brands of the country.

For more details, check out the Sun Pharma financial fact sheet and quarterly results.

Sun Pharma's Dividend History

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	2	2.7	4	7.5	10
Dividend payout ratio (%)	18.7	20.6	22.9	78.8	70.4
Dividend Yield (%)	0.4	0.6	1.1	1.3	1.1

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#4 Motilal Oswal Financial Services

Fourth on the list is Motilal Oswal Financial Services.

The board has declared an interim dividend of Rs 7 per share to reward shareholders for the financial year 2023. The record date for the same is 3 February 2023.

With a rich dividend payout history, it has declared 26 dividends since 2008. The average dividend payout ratio for five years stands at 22.9%. The dividend yield over the past five years has averaged 1.2%.

Motilal Oswal Financial Services is a non-banking financial company that offers a range of financial products and services such as stock broking, private wealth management, retail broking, and asset management.

For more details, check out Motilal Oswal financial fact sheet and quarterly results.

Motilal Oswal Financial Services Dividend History

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	8.3	8.4	4	9.9	10.1
Dividend payout ratio (%)	19.8	43.4	27.5	12.2	11.4
Dividend Yield (%)	1	1.4	0.8	1.6	1.1

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#5 Kajaria Ceramics

Last on the list is Kajaria Ceramics.

On the back of a 6% sequential rise in profits to Rs 736.6 m, the board declared an interim dividend of Rs 6 per share for the financial year 2023. The record date for the same is 8 February 2023.

With a rich dividend payout history, the company has declared 25 dividends since year 2000.

The average dividend payout ratio for the past five years stands at 31.5%. The dividend yield over the past five years has averaged 0.8%.

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India. It has an annual capacity of 82.8 million square meters and is distributed across eight plants.

It exports to Europe, west Asia, and SAARC countries and has plans to tap the export potential in Australia, North America, and Singapore.

For more details, check out the Kajaria Ceramics financial fact sheet and quarterly results.

Kajaria Ceramics' Dividend History

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	2.9	2.9	2.9	9.9	11
Dividend payout ratio (%)	20.9	20.8	18.8	51.5	45.8
Dividend Yield (%)	0.5	1	0.8	1.1	1

*Adjusted for bonus issues and stock splits
Source: Equitymaster

Why should you invest in dividend stocks?

Fundamentally strong companies usually pay dividends at a growing rate. This increases the amount of passive income every year.

Further, dividend paying stocks help by acting as a hedge against inflation and market volatility.

Funnelling excess cash into dividend stocks may produce income in the short-term, but it's not a quick financial fix. Plan on keeping your money invested for five years or more. That timeline can help you avoid unnecessary capital losses.

If you are interested in investing in dividend stocks, you should investigate the company's history of dividend payments and their value before investing.

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

To keep a track of upcoming dividends, check out list of upcoming dividend stocks in India 2023.

To know what's moving the Indian stock markets today, check out the most recent?share market updates here.

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...