4 Stocks Declaring up to 1,400% Dividend in February 2024

Who doesn't appreciate the allure of passive income? Dividend stocks provide just that - a steady payout solely based on your share of ownership.

Its beauty lies in simplicity; there are no obligations attached. Investors can choose to cash in immediately, reinvest in more shares, or save it for a rainy day.

As we step into February 2024, let's delve into the four companies poised to pay dividends up to 1,400%.

#1 Motilal Oswal Financial Services

Leading the list is Motilal Oswal Financial Services.

The company has announced an interim dividend of Rs 14 per equity share, having a face value of Re 1 each fully paid-up, for the financial year 2023-24. The shares are set to return a dividend of nearly 1,400%.

The record date for the same is 6 February 2024.

With a rich dividend payout history, it has declared 28 dividends since 2008. The average dividend payout ratio for five years stands at 22.1%. 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's financial fact sheet and quarterly results.

Motilal Oswal Financial Services Dividend History

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	8.4	4	9.9	10.1	9.9
Dividend payout ratio (%)	43.4	27.5	12.2	11.4	15.9
Dividend Yield (%)	1.4	0.8	1.6	1.1	1.6

*Adjusted for bonus issues and stock splits
Data Source: Equitymaster

#2 ITC

Second on the list is ITC.

ITC's board of members on 29 January declared an interim dividend of Rs 6.3 per ordinary share or 625%, having a face value of Re 1 each for the financial year 2024.

The record date for the same is set as 8 February 2024.

With a good history of dividend payouts, the company has declared 28 dividends since 2001.

The average dividend payout ratio for five years stands at 84.8%. The dividend yield over the past five years has averaged 4.3%.

ITC is India's biggest cigarette & one of the largest fast-moving consumer goods (FMCG) companies.

It has a 78% market share in cigarettes and a presence in other business segments such as staples, biscuits, and personal care products.

The company is also present in the paperboard, printing, & packaging business.

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

ITC's Dividend History

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	5.7	10	10.6	11.4	15.4
Dividend payout ratio (%)	54.9	80	98.9	91.4	98.9
Dividend Yield (%)	1.9	5.9	4.9	4.6	4

*Adjusted for bonus issues and stock splits
Data Source: Equitymaster

#3 Gillette India

Third on the list is Gillette India.

In line with the strong performance, the company on 30 January has announced an interim dividend of Rs 85 per equity share for the financial year 2023-24.

This interim dividend includes a onetime special dividend of Rs 40 per equity share to commemorate 40 years of serving consumers, customers, shareholders, employees, and society.

The company has fixed 8 February 2024 as the record date for payment of the interim dividend and special dividend.

Since 2001, the company has declared 33 dividends.

The five-year dividend payout ratio of the company stands at 81.3%. The five-year average yield of the company is 1.5%.

The company has an extensive distribution network comprising drug stores, department stores, and grocery stores.

It manufactures and sells FMCG products in the grooming and oral care segment. It has an extensive product portfolio of razors, blades, shaving gels, and creams.

Some of its well-known brands are Fusion5, MACH3, and Guard3.

To know more, check out Gillette India factsheets and its quarterly results.

Gillette India's Dividend History

	19-Jun	20-Jun	21-Jun	22-Jun	23-Jun
Dividend per share (Adj.) (Rs)	44	49	119	69	85
Dividend payout ratio (%)	56.7	69.4	124.9	77.7	78
Dividend Yield (%)	1	1	2.1	1	1.4

*Adjusted for bonus issues and stock splits
Data Source: Equitymaster

#4 Tanla Platforms

Fourth on the list is Tanla Platforms.

The company declared an interim dividend of 600%, amounting to Rs 6 per share, having a face value of Re 1 each.

The record date for the same is set as 5 February 2024.

Since the year 2007, the company has declared 15 dividends.

The five-year average dividend payout ratio of the company stands at 11.3%. The dividend yield over the past five years has been 0.6%.

Tanla Platforms is a technology company which offers cloud communications services which help them communicate effectively with their customers.

Tanla's offers cloud communication solutions through messaging and application-to-peer (A2P) messaging services.

The company makes use of artificial intelligence (AI), machine learning (ML), and more to ensure encrypted and reliable communication channels.

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

Tanla Platforms 's Dividend History

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	0.3	0	2	2	10
Dividend payout ratio (%)	13.6	0	7.6	5	30
Dividend Yield (%)	0.9	0	0.2	0.1	1.9

*Adjusted for bonus issues and stock splits
Data Source: Equitymaster

To Conclude

Dividends are the lifeblood of many investors. While Dividend stocks haven't been as popular in recent years, these stocks are regaining their popularity lately.

These securities are considered a good buffer during times of market volatility. They also are seen as an inflation hedge. This has increased demand for dividend stocks in recent times.

Companies paying out a slice of their earnings to shareholders typically have a record of strong profits. This helps a company to maintain its dividend payments in future.

Dividend stocks also have the potential for value appreciation, giving dual benefits to investors.

Before investing in a dividend stock, one should investigate the stock on investment measures. One of the most popular measures from an investment perspective is the dividend yield.

Dividend yield measures the yield that you earn on the stock in the form of a dividend at the current market price.

If you want to dwell deeper on dividend investing, use Equitymaster's powerful stock screener to check high dividend yield stocks and dividend growth stocks in India.

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...