5 Stocks Paying More Than 1,000% Dividend in August 2023

One of the qualities of fundamentally strong stocks is regular dividend payments.

Dividends are like a secret weapon in an investor's armory. They provide a steady income especially in volatile markets.

In this article, we take a look at five companies that are paying more than 1,000% dividend in August 2023.

#1 L&T

Leading the list is L&T.

If you talk engineering and infra stocks in India, L&T is the first name which comes to mind. It's one of the top 5 construction companies in India. L&T is also engaged in defence manufacturing, IT, and financial services.

Larsen & Toubro (L&T) is an Indian company founded by two Danish refugees - Henning Holck-Larsen and Soren Kristian Toubro.

For the financial year 2023, the board of L&T declared a dividend of Rs 24 or 1,200% on the face value of Rs 2 per share. The record date for the same is 2 August 2023.

L&T is a consistent dividend payer. Over the last 5 years, the company has paid an average dividend of Rs 22.

L&T's end of the year dividend yield comes to 1.2%, and the 5-year average dividend payout ratio stands at 43.2%.

L&T Dividend History (2018-2022)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	16.0	18.0	18.0	36.0	22.0
Dividend payout ratio (%)	26.6	26.1	24.9	108.3	30.0
Dividend Yield (%)	1.2	1.3	2.2	2.5	1.2

Source: Equitymaster

L&T is a cash-rich company. It had consolidated cash and cash equivalents of Rs 169.3 billion (bn) as on 31 March 2023.

The company's order book is strong and its order inflows for FY23 crossed Rs 2 trillion (tn). Its order book stood at a record high of Rs 4 trillion (tn).

During the year, the company commissioned a pilot green hydrogen plant at its Hazira campus, officially marking its entry into the green hydrogen business. The pilot plant produces 45 kgs of high purity green hydrogen daily.

To know more check out L&T's dividend payout history.

#2 Maruti Suzuki

Second on the list is Maruti Suzuki.

Maruti Suzuki is a subsidiary of Japan's Suzuki Motor Corporation. It is India's largest passenger vehicle company.

It primarily manufactures passenger and commercial vehicles in India.

For the financial year 2023, Maurti Suzuki declared a dividend of Rs 90 or 1,800% on the face value of Rs 5 per share. The record date for the same is fixed as 4 August 2023.

Maruti Suzuki is consistent a dividend paying company. Since 2004, the company has declared 20 dividends.

Over the last 5 years, the company has paid an average dividend of Rs 65.

Its end of the year dividend yield is 0.79%, and the 5-year average dividend payout ratio stands at 34.4%.

Maruti Suzuki Dividend History (2018-2022)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	80.0	80.0	60.0	45.0	60.0
Dividend payout ratio (%)	30.7	31.6	31.9	31.0	46.7
Dividend Yield (%)	0.9	1.2	1.4	0.7	0.8

Source: Equitymaster

Maruti Suzuki does not have a huge cash balance. Its total cash balance as on 31 March 2023 stood at Rs 334 million (m).

Driven by new model launches, product refreshers, introduction of the strong hybrid powertrain, and the expansion of the portfolio of CNG-powered models, the company's new model activity saw a multi-fold increase during the year under review.

To expand production capacity, the construction of a new manufacturing facility in Kharkhoda, Haryana has started. A plant with a capacity of 250,000 vehicles per annum is to be commissioned within the year 2025.

To know more check out Maruti Suzuki's dividend payout history.

#3 VST Industries

Next on the list is VST Industries.

Founded in 1930 as Vazir Sultan Tobacco Company, VST Industries is the third-largest player in the Indian cigarette market.

Its principal activities are the manufacture and sale of cigarettes and unmanufactured tobacco.

For the financial year 2023, the board of VST Industries declared a dividend of Rs 150 or 1,500% on the face value of Rs 10 per share. The record date for the same is fixed as 5 August 2023.

VST Industries has declared 20 dividends since 2003.

Over the last 5 years, the company paid an average dividend of Rs 65.

Its end of the year dividend yield is 5.75%, and the 5-year average dividend payout ratio stands at 60.3%.

VST Industries Dividend History (2018-2022)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	12.5	20.0	20.0	30.0	30.0
Dividend payout ratio (%)	43.5	55.6	52.8	74.8	74.7
Dividend Yield (%)	2.6	6.1	6.5	13.3	5.8

Source: Equitymaster

VST Industries had a cash balance of Rs 88.2 m at the end of FY23.

The company's revenues grew at a healthy pace during the year under consideration. In the said year its sales grew by 9% to Rs 17.5 bn due to high demand.

On the other hand, its new profit fell marginally by 6% due to high increased taxation.

Experts believe growing demand for value segment could provide strong tailwinds to VST Industries. However raw material prices and increasing tax rates could pose significant challenges.

To know more check out VST Industries' dividend payout history.

#4 Divi's Laboratories

Next on the list is Divi's Laboratories.

Divi's Laboratories is a leading manufacturer of APIs (Active pharmaceuticals ingredients), intermediates, and registered starting materials in India.

The company has been operating for more than thirty years in Hyderabad, India. It's among the top pharmaceutical companies in the country.

For the financial year 2023, the board of Divi's Laboratories declared a dividend of Rs 30 or 1,500% on the face value of Rs 2 per share. The record date for the same is fixed as 11 August 2023.

Divi's Laboratories is consistent dividend paying stock. Over the last 5 years, the company has paid an average dividend of Rs 18.

Its end of the year dividend yield is 0.68%, and the 5-year average dividend payout ratio stands at 29.2%.

Divi's Laboratories Dividend History (2003-2023)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	10.0	16.0	16.0	20.0	30.0
Dividend payout ratio (%)	30.3	31.4	30.9	26.8	26.9
Dividend Yield (%)	0.9	0.9	0.8	0.6	0.7

Source: Equitymaster

Currently, the company has six multipurpose manufacturing facilities and three R&D centres. It plans to invest Rs 10 bn in setting up a new manufacturing facility in Andhra Pradesh which should be ready in the next three years.

The company is also investing in new technologies such as vapour-phased chemistry, continuous flow chemistry, photochemistry, gadolinium compounds, and peptides.

Apart from this, Divi's Laboratories has taken up debottlenecking and backward integration projects at its manufacturing sites to improve cost efficiency.

To know more check out Divi's Laboratories' dividend payout history.

#5 Hawkins Cookers

Last on the list is Hawkins Cookers.

Hawkins Cookers is an Indian company which manufactures pressure cookers and cookware.

The company is based in Mumbai and has three manufacturing plants at Thane, Hoshiarpur and Jaunpur.

For the financial year 2023, the board of Hawkins Cookers declared a dividend of Rs 100 or 1,000% on the face value of Rs 10 per share. The record date for the same is fixed as 3 August 2023.

Since 2004, the company has declared 20 dividends. Over the last 5 years, the company has paid an average dividend of Rs 76.

Its end of the year dividend yield is 2.96%, and the 5-year average dividend payout ratio stands at 60.2%.

Hawkins Cookers Dividend History (2018-2022)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	70.0	80.0	0.0	80.0	150.0
Dividend payout ratio (%)	76.0	78.0	0.0	52.5	94.6
Dividend Yield (%)	2.5	2.6	0.0	1.5	3.0

Source: Equitymaster

Its total cash balance as on 31 March 2023 was Rs 11.4 m.

During FY23 the company's sales grew at a slow pace due to weak demand. Its net profit grew by 13% on a YoY basis to Rs 947.8 m due to softening input prices.

To know more check out Hawkins Cookers' dividend payout history.

Conclusion

Consistent dividend paying companies like the ones we saw above often seem like a lucrative investment choice. After all everyone loves a little stability in a volatile market. But investors should be careful.

While dividend-paying companies offer stability, the dividend is paid from the profits of the business.

An investor should carefully analyse whether dividend payout is within the earnings capacity of the company.

Take a holistic approach while planning investments and don't compromise on research.

Before you go, check out the below video where Richa Agarwal explains the concept of dividend investing.

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...