Stocks to Keep in Your Watchlist to Earn Monthly Dividends - Part 2

Welcome to part 2 of this series where we will help you plan where and how to invest.

In part 1 we discussed stocks that pay out dividends from the month of January to June.

In this part we further dive into finding companies that regularly announce dividends from the period of July to December.

While many companies pay dividends quarterly/annually, a unique portfolio of certain companies can provide investors with a more frequent income stream that can be especially appealing for those seeking regular cash flow.

Whether you're a retiree looking to supplement your income, a young investor reinvesting for growth, or simply someone aiming to reduce portfolio volatility with reliable returns, monthly dividend stocks offer a unique edge.

However, not all dividend-paying stocks are equal. Some boast attractive dividend yields but lack the stability or growth potential to sustain payouts over time. Others may offer modest yields backed by robust financials and consistent cash flow.

The key is to identify companies with a proven track record of consistent payouts in specific months over the past few years, strong fundamentals, and long-term viability.

Let's get started with some of the most promising monthly dividend stocks to keep an eye on.

Read on...

July - Mahindra & Mahindra

Mahindra & Mahindra Ltd (M&M) is one of the most diversified automobile company in India with presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors & earthmovers.

It holds market leadership in SUVs and LCVs and is the #1 tractor manufacturer.

The company makes a wide range of vehicles, including utility vehicles (UVs), SUVs, light commercial vehicles (LCVs), trucks, buses, three-wheelers (including electric), and electric vehicles (EVs).

It operates across both internal combustion engine (ICE) and battery electric vehicle (BEV) segments, with strong product launches. The company derives 72% of its revenues from automotive division, 25% from farm division and balance 3% from other income.

M&M has 47 manufacturing facilities, with 23 in the automotive and farm Equipment Sectors (FES) located across India.

The company declared a final dividend of Rs 21 with record date of 05 July 2025.

August - ICICI Bank

ICICI Bank is the second-largest private sector bank in India offering a diversified portfolio of financial products and services to retail, SME and corporate customers.

The ICICI group has presence in businesses like life and general insurance, housing finance, primary dealership, etc, through its subsidiaries and associates.

Presently, the bank operates a network of 6,371 branches and 1,7037 ATMs across India. 30% of its branches are located in metro cities.

The company's loan book comprises of 54.3% retail loans, 21.7% corporate loans, 8.3% rural loans, 7.4% business banking, 4.9% SME loans and balance 3.4$ overseas loans.

The bank also has an international presence, with branches in the US (New York), Singapore, Bahrain, Hong Kong, Dubai International Finance Centre, South Africa, China, Offshore Banking Unit (OBU), and International Financial Services Centre (IFSC).

The bank's net NPAs stood at 0.39% of the total advances in FY25. Gross NPAs came in lower at 1.67% in the March quarter, from 1.96% in the preceding quarter.

The bank has improved its asset quality drastically, with the net NPAs falling from 2.29% in FY19 to 0.39% in FY25.

The management is positive about its growth in profits despite macroeconomic uncertainties and continues to invest in technology, distribution and franchisee expansion to grow its business.

ICICI Bank announced a final dividend of Rs 11 per share subject to approval of shareholders at the ensuing annual general meeting.

September - Ircon International

Ircon International Ltd (IRCON) commenced its business in 1976 as a railway construction company.

It diversified progressively since 1985 as an integrated engineering and construction PSU specialising in large and technologically complex infrastructure projects in various sectors such as railways, highways, etc.

The company's service portfolio comprises of the following segments:

1. EPC: The company provides services from conception to commissioning for infrastructure projects in the fields of civil, mechanical, electrical, signal, and telecommunication.
2. Public Private Partnership: It offers major services in the category of PPP projects in the railways sector through a joint venture model along with the state government and other stakeholders.
3. Project Management & Consultancy (PMC): The company offers comprehensive PMC services from planning to commissioning in the entire spectrum of projects for construction of railway sidings, highways, railways, and roads over bridges, buildings, etc.
4. Real Estate: It undertakes the development, construction, and leasing of office real estate, as well as the development of commercial properties.

The company derives 84% of its revenues from the railways segment and balance 16% comes from construction of highways & others.

Ircon has completed about 400 infrastructure projects in India and 128 projects in 25 countries.

It has executed a network of 5,564 km of railway tracks, 6,807 km of roads & highways, 157 km of tunnels, 9,654 km of rural electrification, 1.56 million sq. m. of buildings, 159 railway over bridges, and 455 signalling & telecommunication stations.

Geographically, the company derives 95% of its revenues from India and the balance 5% comes from the export market.

Ircon boasts of a very wide range of clientele with the likes of NHAI, BHEL, Delhi Metro, Indian Oil, NTPC, NMDC, Power Grid Corporation to name a few.

The management acknowledged sectoral headwinds but expressed confidence in diversification and new verticals. The core EBITDA guidance is in the range of 5-5.25%.

Ircon recommended a final dividend of Re 1 per share taking the total dividend for the financial year to Rs 2.65 per share.

October - HCL Technologies

HCL Tech is a leading global IT services company, which is ranked amongst the top five Indian IT services companies in terms of revenues.

The company offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO.

HCL Tech derives its revenues from 3 main business verticals namely:

1. IT & Business Services: Services such as application, infrastructure and digital process operations and digital transformation services enabled by digital and analytics, cloud-native, cybersecurity solutions.
2. Engineering and R&D Services: Offers engineering services and solutions across software, embedded, mechanical, VLSI, and platform engineering, supporting the end-to-end lifecycle of both hardware and software products across diverse industries.
3. HCL Software: It offers modernized software products and IP-led offerings for business apps and industrial software, data, and analytics, intelligent operations, security, and compliance.

Geographically, the company derives 65% revenues from America, 28% from Europe and balance 7% from rest of the world.

It derives 21% of its revenues from financial services segment, 20% from manufacturing, 16% from life sciences & healthcare, 13% from technology and services and balance 30% from others.

The company serves over 60 countries and 159 nationalities, through its network of over 200 delivery centres and 150 innovation labs globally.

The management has given a guidance of revenue growth range of 2-5% in constant currency terms with an EBIT margin guidance of 18-19%.

HCL Tech generally announces an interim dividend along with its second quarter earnings with record date being in the month of October.

November - Colgate (Palmolive) India

Colgate-Palmolive India Ltd is engaged in manufacturing/ trading of toothpaste, tooth powder, toothbrush, mouthwash and personal care products.

The company's product portfolio includes various SKUs of toothpaste, tooth powder, toothbrush, mouthwash, and personal care products.

Colgate's flagship brand is one of the most recognised brands in India having a penetration of 88% in the domestic market. The company has 51% market share in the toothpaste segment, 48% in toothpowder and 30% market share in the toothbrush segment.

Colgate owns and operates four manufacturing facilities in Himachal Pradesh, Goa, Gujarat, and Andhra Pradesh.

The management gives no explicit guidance to expand margins beyond current levels. In terms of demand the company says that growth in the urban mass segment will remain weak in the near term, with recovery expected in the back half of FY26.

The company declares an interim dividend in the month of November every year.

December - Vedanta

Vedanta Ltd is a diversified natural resource group engaged in exploring, extracting and processing minerals and oil & gas.

The group engages in the exploration, production and sale of zinc, lead, silver, copper, aluminium, iron ore and oil & gas. It has presence across India, South Africa, Namibia, Ireland, Liberia & UAE.

Presently, India accounts for 65% of total revenues, followed by Malaysia (9%), China (3%), UAE (1%), and others (22%).

Aluminium (38% of revenues) :The company is India's largest primary aluminium producer with a 46% domestic market share. It has an annual smelter capacity of 2.4 m tonnes and operates a 3.5 MTPA alumina refinery in Lanjigarh, Odisha.

Zinc, Lead & Silver (24% of revenues): The company holds a 65% stake in Hindustan Zinc Ltd (HZL) and its integrated zinc operations hold 75% market share in India's primary zinc market. Hindustan Zinc is the 3rd largest silver producer globally.

Copper (15% of revenues): The company is among India's largest copper producers, holding a 20% market share, serving housing wire, cable, transformer, and electrical profile industries.

Oil and Gas (8% of revenues): It operates in Oil & Gas sector through Cairn India, the largest private oil & gas exploration and production company in India.

Power (4% of revenues): The company ranks as the 2nd largest private player in the Indian power sector, with a total capacity of 12 GW across IPP and CPP operations.

Iron Ore (4% of revenues): Vedanta is a key player in iron ore and pig iron production, serving steel, construction, and infrastructure sectors.

Others (7% of revenues): The company also manufactures steel products and high-carbon ferrochrome. It operates an integrated steel plant with a capacity of 1.7 MTPA.

The company said it plans to invest around US$ 500 m in its group company, AvanStrate Inc. (ASI), a global display glass manufacturer. Vedanta had secured a 98% stake in ASI earlier this year.

The management has expressed confidence in achieving US$ 30 bn annual revenue and US$ 10 bn in EBITDA in the near term by emphasising on disciplined growth, operational excellence, and exploring value chain opportunities.

The company declares a dividend once every 3-4 months and is one of the highest dividend paying companies in India. Last year, the company declared an interim dividend in December 2024.

Conclusion

The importance of generating steady income cannot be overstated, especially for investors seeking regular cash flow to support their financial goals in today's volatile markets.

In Part 2 of this two-part series, we've explored a compelling list of fundamentally strong companies that have not only demonstrated consistent dividend-paying behaviour but also align with diverse sectors and risk profiles.

While dividends are attractive, it's crucial to emphasise that a prudent dividend investing strategy should not focus solely on yield. Sustainable payouts, backed by robust balance sheets, scalable business models, and future-readiness are what truly create long-term value.

This watchlist is not one-size-fits-all but rather a foundation for constructing a dividend-focused portfolio tailored to your needs.

Whether your goal is to reinvest dividends for compounding or to draw passive income regularly, aligning stock selection with your financial strategy is key.

We hereby complete the list for 12 calendar months through which you can regularly earn dividend cash flows almost every month for the entire year.

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...