4 Stocks Paying Special Dividend in February 2024

When it comes to investing in dividend stocks, most investors focus primarily on the dividend yield. However, there is an additional layer of potential earnings that often goes overlooked - special dividends.

These unique distributions of company assets can significantly boost investors' returns.

A special dividend is a one-time payment made by a company to its shareholders. Unlike regular dividends, these payouts are usually larger and tied to specific events such as asset sales, corporate restructuring, spinoffs, or other income-generating activities.

While most companies rarely offer multiple special dividends, they can be a lucrative opportunity for investors.

Here are four stocks paying over 200% special dividend in February 2024.

#1 Procter & Gamble Hygiene and Healthcare

Leading the list is Procter & Gamble Hygiene and Healthcare.

The company, on 31 January 2024, declared an interim dividend of Rs 160 per share.

The interim dividend also includes a one-time special dividend of Rs 60 per share, to commemorate 60 years of the company.

The record date for this interim dividend has been set at 9 February 2024.

This is the highest dividend payout announced by the company since May 2017, when it paid Rs 362 per share to shareholders.

Since the year 2000, the company has declared 32 dividends.

The five-year average dividend payout ratio of the company stands at 108%. The dividend yield over the past five years has been 1.3%.

P&G Hygiene is one of the leading female and healthcare consumer goods companies in India. Its business is divided into two segments - hygiene and healthcare.

Its well-known brands include Whisper, Oral B, Vicks, and Olay. It has two manufacturing facilities and an extensive distribution network in India.

To know more, check out the P&G Hygiene's factsheet and the latest quarterly results.

P&G Hygiene's Dividend History

	19-Jun	20-Jun	21-Jun	22-Jun	23-Jun
Dividend per share (Adj.) (Rs)	88	105	315	160	185
Dividend payout ratio (%)	68.2	78.7	156.9	145	88
Dividend Yield (%)	1	1	2.4	1	1.1

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

#2 Gillette India

Second on the list is Gillette India.

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

This interim dividend includes a one-time 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

#3 Goodyear India

Third on the list is Goodyear India.

Goodyear India's board, on 2 February 2024, declared a special interim dividend of 260% or Rs 26 per equity share of face value of Rs 10 each for the Financial Year 2023-24.

The record date for the special interim dividend has been fixed as 12 February 2024.

Goodyear is very consistent with its dividend payments. Ever since 2007, the company paid dividends every year.

With a rich dividend payout history, it has declared 22 dividends since 2007. The average dividend payout ratio for five years stands at 127.7%. The dividend yield over the past five years has averaged 7.5%.

The company is engaged in the business of manufacturing and trading tyres and tubes. Its products are mainly used in the automotive industry and serve major automotive companies, including Escorts and Mahindra Tractor.

For more details, see the GOODYEAR (I) company fact sheet and quarterly results.

Goodyear India's Dividend History

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	13	13	178	100	26.5
Dividend payout ratio (%)	29.4	33.8	301.3	224.2	49.8
Dividend Yield (%)	1.4	2.2	20	11.3	2.5

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

#4 Triveni Engineering

Last on the list is Triveni Engineering.

The company's board, on 30 January 2024, declared a special dividend of 225% or Rs 2.3 per share share at a face value of Rs 1 each for the year. The board has also declared an interim dividend of Rs 2.3 per equity share, having a face value of Rs 1 per piece for the current financial year 2023-24.

The record date for the same is 23 February 2024.

Since 2001, the company has declared 26 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%.

Triveni Engineering & Industries is an Indian conglomerate with diversified businesses in sugar and engineering segments.

The company is engaged in sugar and alcohol, including ethanol production, power co-generation, power transmission, industrial gears and gearboxes and defence, water treatment solutions and FMCG brands.

The company is one of the largest integrated sugar manufacturers in India. It produces fuel-grade ethanol.

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

Triveni Engineering's Dividend History

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	0.8	1.3	1.9	3.6	3.3
Dividend payout ratio (%)	8.3	8.1	14.4	18.5	4
Dividend Yield (%)	1.1	3	2.1	1	1.2

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

To conclude

Investing in stocks that pay special dividends can be appealing for several reasons. Special dividends provide an additional source of income for investors. If a company has a history of paying special dividends, it can be a way to boost overall dividend income.

They are often a sign of financial strength and profitability, as companies typically distribute special dividends when experiencing excess cash or extraordinary profits.

From a tax perspective, these payouts may offer advantages depending on the investor's jurisdiction, potentially resulting in lower tax rates or different treatment.

Furthermore, positive news about a special dividend can lead to an increase in the stock price, reflecting investor confidence in the company's management.

However, it's crucial to consider the potential risks associated with investing in stocks with special dividends.

Special dividends may not be sustainable, and companies might struggle to maintain such payouts in the long term.

Additionally, stocks with special dividends may experience increased volatility around the ex-dividend date, impacting short-term price movements.

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...