Top 5 Stocks Paying Dividends in March 2024

Many investors like to share stories of how they got into some hot momentum stock early or the frustration of how they could have but didn't.

Yet far fewer share tales of increasing their portfolio slowly but surely through the humbler means of dividend compounding over decades.

Dividend stocks lack the wow factor of buying in early on Google or Nvidia, but reinvesting these payouts has been among the most reliable ways to produce long-term gains.

Investing in dividend returns can provide a robust source of portfolio income over time, offering a less flashy but more sustainable approach.

The main challenge lies in identifying the right dividend stocks at opportune moments. For those looking to enhance their portfolio with dividend income, here are five stocks worth watching for dividend income in March 2024.

This article is in continuation to the article we covered last month that highlighted another set of companies that are going to pay dividends in March 2024.

Read on...

#1 TVS Motors

First on the list is TVS Motors.

The board of TVS Motor Company on 11 March 2024 approved an interim dividend of Rs 8 apiece, which is about 800% of the face value, for the year ending March 2024. The dividend payout will cost the company about Rs 3.8 billion (bn).

The record date to determine the eligibility of shareholders is fixed as 19 March.

With a long history of dividend payouts, the company has declared 42 dividends since 2001.

The five-year average dividend payout ratio stands at 23.7%. The dividend yield over the past five years has averaged 0.7%.

TVS Motor is the third largest two-wheeler company in India, with an annual sales of more than 30 lakh units.

The company manufactures the largest range of two-wheelers, including mopeds, scooters, commuter motorcycles, and premium bikes.

It is the largest company in the TVS group in size and turnover.

TVS Motors' Dividend History (2019-23)

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	3.5	3.5	3.5	3.8	5
Dividend payout ratio (%)	22.9	25.7	27.4	24.4	18.1
Dividend Yield (%)	0.7	1.2	0.6	0.6	0.5

*Adjusted for bonus issues and stock splits
Source: Equitymaster

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

#2 Kama Holdings

Second, on the list is Kama Holdings.

The Board of Directors in its meeting held on 11 March 2024, declared an interim dividend at 190%, i.e. Rs 19 per share on the paid-up equity share capital of the company.

Kama Holdings has fixed 19 March 2024 as the record date for the same.

Kama Holdings has declared 21 dividends since 2003.

In the past 12 months, Kama Holdings has declared an equity dividend amounting to Rs 166 per share.

The five-year average dividend payout ratio stands at 3.9%. The dividend yield over the past five years has averaged 1.1%.

Kama Holdings is a leading core investment company engaged in the business of holding long-term investments in its subsidiaries.

Its key segments are the technical textiles business, chemicals business, and packaging film business, among others.

Kama Holdings Dividend History (2019-23)

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	3	6	21.7	32.6	33.2
Dividend payout ratio (%)	1.6	2.1	5.8	5.5	4.6
Dividend Yield (%)	0.2	0.8	1.8	1.3	1.3

*Adjusted for bonus issues and stock splits
Source: Equitymaster

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

#3 Sudarshan Chemical

Third on the list is Sudarshan Chemical.

The company has announced a whopping 180% dividend payment. This translates into Rs 3.6 per equity share with a face value of Rs 2 for the current financial year.

It has set 19 March as the record date for the purpose.

Sudarshan Chemical Industries has declared 29 dividends since 2002.

The five-year average dividend payout ratio stands at 28.1%. The dividend yield over the past five years has averaged 1.2%.

Sudarshan Chemical has specialised in colours and chemicals for over 60 years and has acquired a strong position in the colour business in India.

With over 35% market share, it is the largest pigment supplier among both Indians and MNCs in the fastest-growing economy in the world.

Sudarshan Chemical Dividend History (2019-23)

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	6	6.3	6	5	1.5
Dividend payout ratio (%)	31.3	30.1	29.4	26.6	23.2
Dividend Yield (%)	1.7	1.7	1.2	1	0.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

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

#4 KEI Industries

Fourth on the list is KEI Industries.

The company's board announced an interim dividend of Rs 3.5 per share, which translates to 175% of the face value, for the financial year 2023-24.

The record date for determining eligible shareholders for this interim dividend is 19 March 2024.

Since 2001, the company has declared 23 dividends.

The five-year average dividend payout ratio stands at 5.7%. The dividend yield over the past five years has averaged 0.3%.

The company is India's leading manufacturer of wire and cable solutions, serving clients across sectors and the globe.

The company supplies a vast array of cable and wire products to core sectors, including real estate, infrastructure, power, steel, fertiliser, energy, etc.

KEI Industries Dividend History (2019-23)

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	1.1	1.5	1.9	2.5	3
Dividend payout ratio (%)	5.2	5.2	6.7	6	5.7
Dividend Yield (%)	0.3	0.6	0.4	0.2	0.2

*Adjusted for bonus issues and stock splits
Source: Equitymaster

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

#5 IIFL Securities

Last on the list is IIFL Securities.

The board of directors of the company at their meeting held on 1 March 2024, declared an interim dividend of Rs 3 per equity share of the face value of Rs 2 each (i.e. 150%) for the financial year 2023-2024.

The record date for the said purpose is 15 March 2024.

IIFL Securities has declared 5 dividends since 2020.

The five-year average dividend payout ratio stands at 21.5%. The dividend yield over the past five years has averaged 3.6%.

The company operates in the financial services sector and provides capital financial services, including equity/currency broking in NSE/BSE, online and offline.

They also offer commodity broking in MCX and NCDEX, depository participant services, merchant banking, and distribution of financial products.

Since its incorporation, the company has served over 2.4 million customers through a network of about 2,500 points of presence covering its branches and business partners in over 500 cities in India.

IIFL Securities Dividend History (2019-23)

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	0	2.1	0.9	2.9	2.9
Dividend payout ratio (%)	0	27.3	13.8	29.8	36.7
Dividend Yield (%)	0	6.4	2.1	3.4	6

*Adjusted for bonus issues and stock splits
Source: Equitymaster

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

To Conclude

Dividend paying stocks usually pay a dividend at a growing rate. This increases the amount of passive income every year.

Dividends also act as a defensive strategy during market downturns, as they exhibit more stability compared to non-dividend-paying stocks.

It's important to note that while dividend stocks can provide a level of defensiveness, they are not immune to market fluctuations.

They can still experience declines in value during severe market downturns or company-specific challenges.

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...