4 Stocks Declaring More Than 300% Dividend in June 2023

Amid a surge in inflation, and mounting concerns about a recession, investors are grappling with the uncertainty of generating returns from their stock portfolio in the upcoming months.

While investing inherently carries uncertainties, those seeking opportunities amid turbulence gloss upon reliable dividend-paying stocks.

However, historically, buying dividend stocks has helped insulate investors against inflation. This is because dividend-paying stocks can also offer downside protection during market downturns.

If you are considering investing in dividend stocks to beat the market volatility, here are four stocks declaring more than 300% dividend in June 2023.

#1 Voltas

Leading the list is Voltas.

For the financial year 2023, the board of Voltas has declared a dividend of Rs 4.25 or 425% on the face value of Rs 1 per share. The record date for the same is fixed as 10 June 2023.

Voltas has remained a consistent dividend payer. Since 2001, the company has declared 24 dividends.

The five-year average dividend payout ratio stands at 27.8%. The dividend yield over the past five years has averaged 0.6%.

Voltas, a Tata group company, is the undisputed market leader in the room air conditioner category for more than a decade, consistently maintaining the #1 position and has steadily maintained its lead over the competition.

Founded in 1954, the company is also globally recognised as an engineering solutions provider and a project specialist.

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

Voltas Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	4.0	4.0	4.0	5.0	5.0
Dividend payout ratio (%)	23.1	23.4	25.4	31.3	36.0
Dividend Yield (%)	0.6	0.6	0.8	0.5	0.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#2 Solar Industries

Second, on the list is Solar Industries.

The company's board has declared a final dividend of Rs 8 per share, i.e. 400% on the face value of Rs 2 each for the financial year 2023. The record date for the same is 10 June 2023.

The company has maintained a good record of dividends and consistently declared dividends for the last five years. It has declared a total of 27 dividends since 2006.

The five-year average dividend payout ratio stands at 19.9%. The dividend yield over the past five years has averaged 0.6%.

Solar Industries is one of the largest manufacturers and suppliers of Explosives and Explosive Accessories in India. It manufactures various types of packaged emulsion explosives, bulk explosives, and explosive initiating systems.

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

Solar Industries India Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	6.0	7.0	6.0	6.0	7.5
Dividend payout ratio (%)	23.2	22.9	19.5	18.8	36.0
Dividend Yield (%)	0.6	0.6	0.8	0.5	0.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#3 Tata Steel

Third on the list is Tata Steel.

Tata Group steel manufacturer Tata Steel announced a dividend of Rs 3.6 per equity share of face value Rs 1 (360%) for the financial year 2023. The record date for the same is 23 June 2023.

In the last five years, Tata Steel has consistently made dividend payments. It has declared a total of 29 dividends since 2001.

The five-year average dividend payout ratio stands at 3.6%. The dividend yield over the past five years has averaged 3%.

Tata Steel is Asia's first integrated private steel company. It's present across the value chain, from mining iron ore and coking coal to the distribution of steel and value-added products.

For more details, see the Tata Steel company fact sheet and quarterly results.

Tata Steel Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	0.1	0.1	0.1	0.3	0.5
Dividend payout ratio (%)	0.7	1.7	10.3	3.7	1.5
Dividend Yield (%)	1.8	2.5	3.7	3.1	3.9

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#4 Seshasayee Paper & Board

Last on the list is Seshasayee Paper & Board.

The company, for the financial year 2023, has declared a dividend of Rs 6 per share, which is 300% on the face value of Rs 2 each. The record date for the same is 8 June 2023.

With a good history of dividend payouts, the company has declared 24 dividends since 2001.

The average dividend payout ratio for five years stands at 10.3%. The dividend yield over the past five years has averaged 2.1%.

Seshasayee Paper and Boards Limited (SPB) is the flagship company belonging to the SPB-Esvin group. It is engaged in the business of manufacture and sale of printing and writing paper.

For more details, see the Seshasayee Paper company fact sheet and quarterly results.

Seshasayee Paper's Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	0.6	0.8	4.0	2.5	2.5
Dividend payout ratio (%)	3.1	2.7	14.6	15.9	15.5
Dividend Yield (%)	1.7	2.1	3.8	1.6	1.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

To conclude

Dividend paying stocks offer stable income in an uncertain period.

They 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...