It's Raining Dividends! 5 Stocks Paying up to 5,000% Dividend in February 2024

These days artificial intelligence (AI), sustainable funds and quant investing are all the rage, while one of the oldest and simplest stock-picking strategies seems antiquated.

This timeless approach is worth a second look though.

Dividend investing holds a unique charm, offering steady cash flow over the long term. When you reinvest dividend income, the magic of compounding can turbocharge your returns.

Last week, we wrote about the top stocks paying dividends in February 2024. It's only been a week and more companies have announced even bigger dividends as it's quarterly earnings season!

Take a look...

#1 Hero MotoCorp

First on the list is Hero MotoCorp.

The board of directors on 9 February 2024, declared an interim dividend of 3750%, amounting to Rs 75 per equity share, alongside a special dividend of 1250%, equivalent to Rs 25 per equity share.

This announcement brings the overall interim dividend for the financial year 2023-24 to an impressive 5,000%, totalling Rs 100 per equity share.

Accordingly, the board has fixed 21 February 2024 as the record date for payment of interim & special dividends.

In the last five years, Hero MotoCorp has consistently made dividend payments. It has declared a total of 40 dividends since 2001.

The five-year average dividend payout ratio stands at 64.7%. The dividend yield over the past five years has averaged 4.2%.

Hero MotoCorp, formerly known as Hero Honda, is an Indian motorcycle and scooter manufacturing company. It is the largest two-wheeler manufacturer in the world. It holds 37% of the share in the two-wheeler category.

For more details, see Hero MotoCorp's financial factsheet and latest quarterly results.

Hero MotoCorp's Dividend History (2019-2023)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	86.9	89.9	104.9	94.9	99.9
Dividend payout ratio (%)	51	49.6	70.3	81.5	71.4
Dividend Yield (%)	3.4	5.6	3.6	4.1	4.3

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#2 Alkem Laboratories.

Second on the list is Alkem Laboratories.

Alkem Laboratories, on 9 February 2024, declared declared an Interim Dividend of 1,750% or Rs 35 per equity share on the face value of Rs 2 per share for the financial year 2023-24.

The record date for the dividend is 17 February 2024.

In the past 12 months, Alkem Laboratories has declared an equity dividend amounting to Rs 50 per share.

The company has declared 17 dividends since 2016.

The five-year average dividend payout ratio stands at 31.3%. The dividend yield over the past five years has averaged 1.1%.

Alkem Laboratories is an Indian pharmaceutical company headquartered in Mumbai. It manufactures and sells pharmaceutical generics, formulations and nutraceuticals in India and abroad.

For more details, see Alkem Laboratories company fact sheet and quarterly results.

Alkem Laboratories' Dividend History (2018-2022)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	16	25	30	34	50
Dividend payout ratio (%)	24.7	26	22.2	24.2	59.4
Dividend Yield (%)	0.9	1.1	1.1	0.9	1.5

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#3 Disa India

Third on the list is Disa India.

DISA India last week approved the first interim dividend of a whopping Rs 100 per share (1,000%), having a face value of Rs 10 each for the financial year 2023-24.

The record date for the said dividend is 16 February 2024.

DISA is a dividend-paying stock and holds a good track record of payout for the last five years. In FY23. The company paid up to 1,100% dividend, aggregating to Rs 110 per share.

Since 2001, the company has declared 23 Dividends.

The five-year average dividend payout ratio stands at 24.5%. The dividend yield over the past five years has averaged 0.9%.

DISA develops and manufactures a complete range of metal casting production solutions for the ferrous and non-ferrous foundry industries.

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

Disa India's Dividend History (2018-2022)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	2.5	2.5	10	160	110
Dividend payout ratio (%)	1.3	1.2	6	60.3	53.7
Dividend Yield (%)	0	0.1	0.2	2.6	1.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#4 Cummins India

Fourth on the list is Cummins India.

The board of directors have approved and declared an interim dividend of Rs 18 per equity share, i.e., at the rate of 900% on its face value.

The record date for the same is fixed as 21 February 2024.

In the past 12 months, Cummins India Ltd. has declared an equity dividend amounting to Rs 25 per share.

Since 2001, the company has declared 46 dividends since 2001.

The five-year average dividend payout ratio stands at 59.1%. The dividend yield over the past five years has averaged 2.3%.

Cummins designs, manufactures, and sells diesel and alternative fuel engines, generators, and related accessories. It also provides after-sale services.

The company has a strong domestic presence. Being a part of Cummins USA, it also has a global presence.

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

Cummins India's Dividend History (2019-2023)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	17	14	15	18.5	25
Dividend payout ratio (%)	63.5	55	65.5	54.9	56.4
Dividend Yield (%)	2.3	4.3	1.6	1.6	1.5

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#5 PI Industries

Last on the list is PI Industries.

The board, on 9 February 2024, announced an interim dividend of 600%, i.e., Rs 6 per equity share of Rs 1 each, for the financial year 2023-24.

The company has fixed 21 February as the record date.

PI Industries Ltd. has declared 30 dividends since 2002.

PI Industries paid a dividend of 1,000% for the year ended March 2023. The dividend payout per share of Rs 10.

The five-year average dividend payout ratio stands at 11.8%. The dividend yield over the past five years has averaged 0.3%.

PI Industries is engaged in the business of agri inputs, fine chemicals, contract research and manufacturing services, polymers, and engineering services.

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

PI Industries' Dividend History (2019-2023)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	3.6	3.6	5	6	10
Dividend payout ratio (%)	13.5	12.1	10.3	10.8	12.3
Dividend Yield (%)	0.4	0.3	0.2	0.2	0.3

*Adjusted for bonus issues and stock splits
Source: Equitymaster

Which Other Stocks are Declaring Big Dividends in February 2024?

Company	Dividend (%)	Dividend (Rs)	Record Date
Banco Products	1000	20	16-Feb-24
Page Industries	1000	100	16-Feb-24
Gulf Oil	800	16	13-Feb-24
Nestle	700	7	15-Feb-24

Data Source: BSE

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 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.

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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...