4 Stocks to Watch Out for Upcoming Dividends in March 2025

The Indian stock market has fallen up to 14% from its record highs just five months ago. Specifically, the Sensex and Nifty have fallen by 13.4% and 14.17%, respectively, from their peaks at the end of September last year.

This correction comes amid weak global cues, a lacklustre Q3 earnings season, concerns over US President Donald Trump's reciprocal tariff threats, and persistent selling by foreign institutional investors (FIIs).

In 2025 alone, the Sensex has declined 4.72% and the Nifty, 4.62%.

In these uncertain times, investors are increasingly seeking safe harbours that offer capital preservation and consistent returns. Dividend-paying stocks are emerging as an attractive option.

With this in mind, here are four stocks that are set to turn ex-dividend in March 2025.

#1 Castrol India

First on the list is Castrol India.

The company has declared a dividend payment of Rs 9.5 or 190% on a face value of Rs 5. The record date for the same is 18 March 2025.

Castrol India in 2024 paid dividends on two occasions, aggregating to Rs 8 per share. The company has a good dividend track record. It has consistently declared dividends for the last 5 years.

Looking at the long-term picture, Castrol India has maintained an average dividend payout ratio of 79.1% over the past five years, with an average dividend yield of 4.5%.

The company's consistency is further highlighted by its declaration of 50 dividends since 2000, making it one of the most reliable dividend stocks in the Indian market.

Castrol India is a prominent subsidiary of the global lubricants brand Castrol, part of BP (British Petroleum). It has been a significant player in the Indian lubricant industry since 1910.

Its product portfolio includes engine oils, transmission fluids, and speciality products for various vehicles, as well as oils and greases for industrial applications.

Castrol India's Dividend History (2020-24)

	Dec-19	Dec-20	Dec-21	Dec-22	Dec-23
Dividend per share (Adj.) (Rs)	5.5	5.5	5.5	6.5	7.5
Dividend payout ratio (%)	65.8	93.3	71.8	78.9	85.8
Dividend Yield (%)	4.3	4.5	4.5	5.3	4.2

Source: Equitymaster

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

#2 SBI Life Insurance

Next on the list is SBI Life Insurance.

On 25 February 2025, the company announced that its board of directors will consider an interim dividend on equity shares for FY25 on Friday, 28 February. The record date for dividend eligibility is set for 7 March 2025.

In FY24, SBI Life paid a dividend of 27%, amounting to Rs 2.7 per share. Since 2018, the company has distributed dividends on 7 occasions. Over the last five years, it has averaged a dividend payout of Rs 2 per share.

SBI Life Insurance Company is one of India's leading life insurance providers. Established in 2000 as a joint venture between the State Bank of India and BNP Paribas Cardif, the company offers a diverse range of products for both individuals and groups.

These products include life insurance, annuities, health insurance, pension plans, and variable insurance options, as well as traditional and unit-linked plans.

SBI Life Insurance Services Dividend History (2020-2024)

	Mar-20	Mar-21	Mar-22	Mar-23	Mar-24
Dividend per share (Adj.) *(Rs)	0	2.5	2	2.5	2.7
Dividend payout ratio (%)	0	17.2	13.3	14.5	14.3
Dividend Yield (%)	0	0.3	0.2	0.2	0.2

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the SBI Life Insurance company fact sheet and quarterly results.

#3 DIC India

Next on the list is DIC India.

The board has recommended a final dividend of Rs 4 per equity share for the financial year ending 31 December 2024, with the record date set for 18 March 2025.

Notably, the company has declared dividends 20 times since 2003.

DIC India is a printing and packaging firm that makes inks, adhesives, and other essential materials.

As a part of DIC Corporation-the world's largest manufacturer of printing inks-it has grown from a single service centre in Kolkata to a network of factories and logistics centres across India.

DIC India Dividend History (2020-2024)

	Dec-20	Dec-21	Dec-22	Dec-23	Dec-24
Dividend per share (Adj.) * (Rs)	6	5	2	0	4
Dividend payout ratio (%)	6	37	4	0	19

*Adjusted for bonus issues and stock splits
Source: Equitymaster

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

#4 Aayush Wellness

Last on the list is Aayush Wellness.

The company's Board of Directors recently announced the company's first-ever interim dividend of Rs 0.01 per share for Q3 FY25. The record date for the same is 3 March 2025.

Aayush Wellness offers an extensive range of advanced nutraceuticals, dietary supplements, functional foods, and therapeutic products, all aimed at boosting overall well-being.

Committed to elevating health standards across India, the company continues to deliver innovative and natural wellness solutions.

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

Conclusion

Investing in dividend-paying stocks offers several advantages along with a few potential drawbacks.

On the positive side, these stocks provide a steady income stream through regular dividend payments, which can be especially attractive for retirees or investors looking to reinvest dividends and benefit from compounding over time.

Additionally, companies that consistently pay dividends tend to be well-established with stable earnings, often resulting in lower volatility during market downturns and offering a measure of financial stability.

However, there are some considerations to keep in mind. Firms that allocate a significant portion of their profits to dividends might have less capital available for reinvestment and growth, potentially limiting long-term capital appreciation compared to high-growth companies.

Ultimately, while dividend-paying stocks can be a valuable component of a diversified portfolio focused on income and stability, it's important to balance them with growth-oriented investments to align with your overall financial goals and risk tolerance.

Investors should also pay attention to factors like corporate governance, payout consistency, and growth potential before making their decisions.

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...