10 Stocks to Watch Out for Upcoming Dividends in June 2023

Dividend investing is a strategy that involves buying shares in companies that pay dividends regularly to their shareholders. These dividend payments can be made on a quarterly or annual basis and are a portion of the company's profits.

One of the key advantages of dividend investing is that it provides investors with a reliable and predictable source of income. Unlike capital gains, which depends on the market, dividends are more stable and consistent.

Dividend paying stocks can also offer downside protection during market downturns.

With all these benefits in mind, it's no surprise that many investors focus on dividend investing as a key component of their investment strategy.

Indian companies have started declaring their earnings for the full year and fourth quarter ended March 2023. Some companies have also announced interim, special, and final dividends.

Let's take a look at 10 such stocks to watch out for upcoming dividends in June 2023.

#1 Infosys

India's second largest IT company Infosys declared a final dividend of Rs 17.5 per share.

The company's board recently fixed the record date for the said dividend payment as 2 June 2023. The dividend will be paid on 3 July 2023. Infosys will trade ex-dividend a day or two before the record date.

In recent times, Indian IT services firms are confronting two challenges simultaneously.

These are a decrease in business growth in important markets like the US, and a decline in the outsourcing of fundamental coding tasks as many businesses adopt Artificial Intelligence systems to automate software programming.

While this weakness in the global macro environment could be transitory, management commentary has begun to turn cautious given fears of a macro slowdown.

It's no wonder Infosys share price is under immense pressure and most IT stocks are falling.

These stocks are mostly trading at a discount to their 3-year median PE and all-time high PEs. Infosys trades at a PE of 24, a discount of 17% to its 3-year median PE and 36% to its all-time high PE of 38.

To know more, check out Infosys dividend payout history.

#2 Mahindra CIE Automotive

Next on this list is Mahindra CIE Automotive.

The auto component company of the Mahindra group declared a dividend of Rs 2.5 per share back in February 2023. The company recently fixed its record date as 3 June 2023.

This will be only the second dividend declared by Mahindra CIE in its history. Prior to this, it declared its first dividend back in December 2021.

Mahindra CIE shares have been in focus this week after the company posted stellar results for the fourth quarter.

The company's consolidated net profit came in at Rs 2.8 billion (bn) in the quarter ended March 2023, up from Rs 1.6 bn a year ago. This was due to its domestic and Europe business witnessing strong demand.

The company informed the bourses in its filing that revenue from India rose 13.3% while the European business outperformed the Indian business by 5.8%.

To know more, check out Mahindra CIE's dividend payout history.

#3 Hindustan Unilever

Next on this list is India's largest FMCG company, Hindustan Unilever (HUL).

Along with its quarterly results, the FMCG major also announced a final dividend of Rs 22 per share for the financial year ended March 2023. It fixed 20 June 2023 as the record date for the dividend.

In November 2022, the company paid an interim dividend of Rs 17 per share, taking the total dividend for the year to Rs 39 per share. This is a 15% growth compared to last year.

In its latest quarterly results, the company maintained a cautious stance and said that in the near term, the operating environment will remain volatile.

The company added around Rs 80 bn to its revenues in FY23 with volume growth in mid-single digits despite a decline in FMCG market volumes.

To know more, check out HUL's dividend payout history.

#4 Supreme Petrochem

Next on this list is Supreme Petrochem.

The chemical company has declared a final dividend of Rs 7 per share for FY23. The record date for the same has been fixed as 28 June 2023. This dividend is in addition to the interim dividend of Rs 2 per share paid by the company in November 2022.

Shares of the company have been on investors radar ever since it approved the Phase II expansion of its expandable polystyrene (EPS) plant at Maharashtra. It's also undertaking capex for enhancing compounds, masterbatches, and XPS capacities at its Amdoshi Plant to meet additional demand.

Supreme Petrochem is a debt free company with Rs 9.7 bn cash balance at the end of March 2023.

To know more, check out the Supreme Petrochem's dividend payout history.

#5 Bajaj Auto

Next on this list is Bajaj Auto.

The auto major has declared a final dividend of Rs 140 per share for the year ended March 2023. The record date for the same has been fixed as 30 June 2023. In the previous two financial years, the company had declared the same amount of dividend, Rs 140 per share.

Shares of the company are currently trading near their 52-week high. The company was on the radar ever since it entered the much anticipated electric vehicle (EV) segment. The company has played the differentiation card in the EV game as it entered the premium segment.

The macro winds in the auto segment may keep the sales volume under pressure. However the premiumisation trend can act as a cushion.

The company plans to sell 10,000 EV units per month over the next 3-6 months, which is a significant target in India's growing EV market.

On 10 April 2023, it completed the transfer of Triumph's India sales and marketing operations to Bajaj Auto. The transfer is linked to an announcement made in 2020, where a strategic partnership was announced between the two companies, to create a new range of mid-sized Triumph Motorcycles.

The new range is expected to launch in 2023. Reportedly two bikes are already under testing. The street is bullish on Bajaj Auto on account of the impending launch of Triumph bikes.

The company has surplus cash of Rs 174.5 bn as of March 2023.

To know more, check out Bajaj Auto's dividend payout history.

#6 Bajaj Holdings & Investment

Next on the list is another Bajaj group company.

Bajaj Holdings has declared a final dividend of Rs 13 per share. The company has fixed 30 June as the record date for the same. This is in addition to the interim dividend of Rs 110 per share it paid in September 2022.

The company's dividend payout has increased dramatically in the past two years. Bajaj Holdings recently declared its quarterly earnings where profit rose 22.4% to Rs 13.5 bn.

Bajaj Holdings and Investments, formerly known as Bajaj Auto, is an Indian-based holding and Investment company. The company operates as a primary investment firm, focusing on new business prospects. It holds strategic stakes of 31.5% in Bajaj Auto and 39.2% in Bajaj Finserv Ltd.

To know more, check out Bajaj Holdings' dividend payout history.

#7 Maharashtra Scooters

Next on this list is Maharashtra Scooters.

The midcap company has recently declared a final dividend of Rs 60 per share. The record date for the same has been set as 30 June 2023. This dividend is in addition to the interim dividend of Rs 100 per share it paid in September 2022.

This year's dividend payout is much higher than the payouts it declared in the past. In 2022, the company paid out Rs 80 per share. Prior to this, it paid out Rs 50 per share in 2021 and 2020.

The company is a subsidiary of Bajaj Holdings and the shares of both these companies have moved in tandem in the recent past.

To know more, check out Maharashtra Seamless' dividend payout history.

#8 Nippon Life AMC

Next on the list is Nippon Life Asset Management Company (AMC).

In March this year, we wrote to you about the five midcap companies that could announce big dividends in 2023. Nippon Life AMC was part of that list.

And the company did not disappoint. It has declared a final dividend of Rs 7.5 per share. The record date for the same is 30 June 2023. This dividend is in addition to the interim dividend of Rs 4 per share it paid in October 2022.

Its five-year average dividend payout and dividend yield stood at 78.7% and 2.4%, respectively.

Nippon Life AMC offers its products and services to retail, HNI (high net worth), institutional, corporate, and offshore investors.

During the FY18-22 period, the company's net profit went up by over 63%. A number of investors and cost optimisation measures undertaken by the company have contributed to the growing profits.

As a result, the company's return ratios are increasing, and so are its cashflows. The company is also a zero-debt company.

To know more, check out Nippon Life AMC's dividend payout history.

#9 Syngene International

Next on this list is Syngene International.

The pharma company recently declared a final and a special dividend, along with its quarterly results. Both the special and final dividend total Rs 1.2 per share. The record date for the same has been fixed as 30 June 2023. In 2022, the company had paid a dividend of Rs 1 per share.

Shares of Syngene International have been on a roll as the company has surpassed its full year guidance and reported blockbuster earnings. The company's revenue growth for FY23 was 23% versus the guidance of high-teen growth. Profit increased 17% compared with guidance of single-digit growth.

In its latest concall, the company said it added 400 scientists in Hyderabad in FY23 and commissioned a state-of-the-art sterile fill-finish facility as well as a kilo lab for polymers and specialty materials.

The company expects to maintain revenue growth in the high teens in FY24.

To know more, check out Syngene's dividend payout history.

#10 Bajaj Finance

Last on this list is Bajaj Finance.

The company has declared a final dividend of Rs 30 per share for the financial year ended March 2023. The record date for the same has been fixed as 30 June 2023.

This is the company's highest dividend per share payout in its history. Prior to this, it had declared dividends of Rs 20 and Rs 10 for 2022 and 2021. The company recently posted a 30% jump in its PAT at Rs 31.6 bn for the March 2023 quarter.

Shares of Bajaj Finance have seen a steep decline in the recent past owing to increased competition and slowdown in growth.

For more on Bajaj Finance and what lies ahead for this fintech stock, check out this video where Yazad Pavri discusses its growth prospects, challenges, and more.

So these were the top 10 stocks that are set to pay dividends in June 2023. Have a look at the table below to compare each on their financial metrics.

Dividend Paying Stocks of June 2023

Company	Record Date	Dividend %	Dividend Type	Promoter Holding	Total Debt/Equity(x)	PATM (%)	Current Price (Rs)
Infosys Ltd.	02-Jun-23	350.0	Final	15.1	0.0	18.8	1,252.6
Mahindra CIE Automotive Ltd.	03-Jun-23	25.0	Final	68.9	0.0	3.4	398.4
Hindustan Unilever Ltd.	20-Jun-23	2,200.0	Final	61.9	0.0	15.5	2,454.4
Supreme Petrochem Ltd.	28-Jun-23	350.0	Final	64.2	0.0	13.1	382.7
Bajaj Auto Ltd.	30-Jun-23	1,400.0	Final	55.0	0.0	15.0	4,429.5
Bajaj Holdings & Investment Ltd.	30-Jun-23	130.0	Final	51.5	0.0	91.8	6,854.7
Maharashtra Scooters Ltd.	30-Jun-23	600.0	Final	51.0	0.0	830.2	5,058.5
Bajaj Finance Ltd.	30-Jun-23	1,500.0	Final	55.9	3.0	22.8	6,280.4
Nippon Life India AMC	30-Jun-23	75.0	Final	73.7	0.0	58.6	238.0
Syngene International Ltd.	30-Jun-23	7.5	Special	54.9	0.2	15.1	677.4
Syngene International Ltd.	30-Jun-23	5.0	Final	54.9	0.2	15.1	677.4

Data Source: Ace Equity, Equitymaster

Happy Investing!

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...