5 Stocks to Watch Out for Upcoming Dividends in March 2023

With Indian share markets already facing high volatility this year due to Adani stocks selloff, investors are heavily relying on dividend stocks to generate returns.

And the best part is the dividend season is just getting started with multiple companies declaring their final dividend for the financial year.

Here are five companies which have recently declared big dividends.

#1 Ujjivan Small Finance Bank

First on the list is Ujjivan Small Finance Bank.

Ujjivan Small Finance Bank is an Indian small finance bank based in Bangalore, which commenced operations on 1 February 2017. Ujjivan Financial Services holds a majority stake in the bank.

The bank has a pan-India presence, with over 59.7 lakh customers, and 575+ banking touchpoints across 248 districts, 24 states and Union Territories, as of 30 September 2022.

For the quarter ended December 2022, the company reported total sales of Rs 10.8 billion (bn). Sequentially, sales were up by 9%. However, on a YoY basis, sales were up by 53%.

Its quarterly net profit came in at Rs 2,932 million (m). Sequentially, net profit has reduced marginally and on a YoY basis, it has increased by Rs 3,270 m compared to loss of 338 m.

The net profit margin stood at 27.1% for the quarter ending 31 December 2022. Sequentially it is 2.5% lower.

On the back of 53% YoY rise in the net interest income for the December 2022 quarter, the company has approved dividend on 14 February 2022. The company has fixed 01 March 2023 as the record date.

To know more, check out its factsheet and latest quarterly results.

#2 Hinduja Global Solutions

Next on the list is Hinduja Global Solutions.

Hinduja Global Solutions is one of the largest transnational business conglomerates in the world. The company provides information technology-enabled services in India and internationally. They offer professional IT staffing claims processing call centre software development and consulting services.

For the quarter ended 31 December 2022, Hinduja Global Solutions has declared an interim dividend of 25% amounting to Rs 2.5 per share. The company has fixed 06 March 2023 as the record date.

Since 2007, the company has paid 44 dividends in total. Over the last 5 years, the company has paid an average dividend of 650% amounting to Rs 65 per share. Its end of year dividend yield was 23.9%.

Hinduja Global Solutions Dividend History (2018-2022)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	4	4	8	15.9	195
Dividend payout ratio (%)	10.4	11.8	20.3	-142.5	33,428.40
Dividend Yield (%)	1.2	1.4	4	2.3	23.9

Source: Equitymaster

To know more about the company, check out its factsheet and latest quarterly results.

#3 Huhtamaki India

Huhtamaki India is India's leading manufacturer of primary consumer packaging and labelling materials. It's the largest manufacturer (in volume) of finished flexible packaging in the larger Africa - India - Asia Pacific region, excluding Japan.

Huhtamaki India follows the calendar year format and the company's financial year ends on 31 December 2022.

For the financial year 2022, the company has declared a final dividend of 100% amounting to Rs 2 per share. The company has fixed 20 April 2023 as the record date.

Since 1997, Huhtamaki India has paid 26 dividends in total. Over the last 5 years, the company has paid an average dividend of Rs 2.8 per share.

Huhtamaki India Dividend History (2018-2022)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	3	5	3	1	2
Dividend Yield (%)	1.55	2.03	0.96	0.44	0.5

Source: Equitymaster

To know more about the company, check out its factsheet and latest quarterly results.

#4 ABB India

Established in 1949, ABB India is one of the most reputed names in Indian infrastructure. Its operations can be divided into four major segments: electrification, process automation, motion, and robotics.

ABB India follows the calendar year format and the company's financial year ends on 31 December 2022.

For the financial year 2022, the company has declared a final dividend of 275% amounting to Rs 5.5 per share. The company has fixed 27 April 2023 as the record date.

Since 2000, ABB India has paid 26 dividends in total. Over the last 5 years, the company has paid an average dividend of Rs 5.1 per share.

ABB India Dividend History (2018-2022)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	4.8	4.8	5	5.2	5.5
Dividend Yield (%)	0.36	0.37	0.41	0.23	1.35

Source: Equitymaster

To know more about the company, check out its factsheet and latest quarterly results.

#5 Castrol India

Castrol India is an automotive and industrial lubricant manufacturing company. It's the 2nd largest manufacturer of automotive and industrial lubricants in the Indian lubricant market and has around 20% market share in the overall Indian lubricant market. It is part of Castrol UK.

Castrol India follows the current year format and the company's financial year ends on 31 December 2022. For the financial year 2022, the company has declared a final dividend of 70% amounting to Rs 3.5 per share.

Since 1997, Castrol India has paid 48 dividends in total. Over the last 5 years, the company has paid an average dividend of Rs 7 per share.

Castrol India Dividend History (2018-2022)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	5	5.5	5.5	5.5	3.5
Dividend Yield (%)	3.3	4.3	4.5	4.5	4.5

Source: Equitymaster

To know more about the company, check out its factsheet and latest quarterly results.

Investment Takeaway

Dividend stocks offer resilience, but dividend payout also means fewer funds for a company for its business. If the company didn't use the money to pay dividends, the same amount could have better utilized at working capital or capex.

So one should be careful while selecting dividend-paying stocks. The father of investing Benjamin Graham says,

• "The stockholder wants both income and appreciation, but in general the more he gets of one the less he realizes of the other."

An investor should clearly choose his investment goals before he makes any investment decision. Investing in fundamentally strong stocks should be the ultimate focus.

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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...