Top 5 Stocks Paying Big Dividends in September 2023

Corporate India once again displayed its commitment to rewarding shareholders generously during the fiscal year 2022-23, even in the face of lackluster profit expansion.

In the previous financial year, Indian corporations disbursed an unprecedented total of Rs 4 trillion (tn) in dividends, marking an impressive 28% surge from the figures seen in 2021-22.

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

This not only allows investors to benefit from potential growth but also provides them with a regular income stream.

Let's take a look at five stocks that are paying dividends in September 2023.

#1 Vinati Organics

Leading the list is Vinati Organics.

For the financial year 2023, the board of Vinati Organics declared a dividend of Rs 7 or 700% on the face value of Rs 1 per share.

The record date for the same is 1 September 2023.

The company has remained a consistent dividend payer. Since 2001, the company has declared 26 dividends.

The five-year average dividend payout ratio stands at 18.7%. The dividend yield over the past five years has averaged 0.4%.

Vinati Organics is a leading manufacturer of speciality chemicals and organic intermediaries. The company has a presence in over 35 counties across the globe.

The product range includes aromatics, industrial monomers, and industrial polymers.

It is the world's largest manufacturer of Isobutyl Benzene (IBB) and 2-Acrylamido 2 Methylpropane Sulfonic Acid (ATBS).

To know more, check out the Vinati Organics factsheet and the latest quarterly result.

Vinati Organics' Dividend History (2019-2023)

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	1.75	5.5	6	6.5	7
Dividend payout ratio (%)	6.4	16.9	22.9	19.3	15.7
Dividend Yield (%)	0.3	0.3	0.5	0.4	0.3

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#2 NMDC

Second on the list is NMDC.

NMDC's board declared a final dividend of Rs 2.85 or 285% per share, having a face value of Rs 1 each for FY23. This is in addition to an interim dividend of Rs 3.75 per share, which has been already paid to the shareholders.

The record date for the final dividend is 1 September 2023.

The company has maintained a good record of dividends and consistently declared dividends for the last five years. It has paid a total of 43 dividends since 2001.

The five-year average dividend payout ratio stands at 39.7%. The dividend yield over the past five years has averaged 6.5%.

NMDC is the largest iron ore manufacturer.

The company is engaged in exploration and production of iron ore, diamonds and sponge iron. It has also forayed into renewable energy and generates and sells wind power.

NMDC has the lowest cost of producing iron ore in the country and enjoys cost leadership over its peers.

To know more, check out NMDC's financial factsheet and latest quarterly results.

NMDC's Dividend History (2019-2023)

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	5.8	5.5	7.8	14.7	6.6
Dividend payout ratio (%)	36.4	45	36.4	45.8	34.9
Dividend Yield (%)	5.3	6.6	5.7	9.1	5.9

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#3 Vindhya Telelinks

Third on the list is Vindhya Telelinks.

Vidhya Telelinks announced a dividend of Rs 15 per equity share with a face value of Rs 10 (150%) for the financial year 2023.

The record date for the same is 5 September 2023. It has declared a total of 13 dividends since 2001.

The five-year average dividend payout ratio stands at 11.9%. The dividend yield over the past five years has averaged 1.3%.

Vindhya Telelinks is a leading Public Limited Indian Non-Government Company.

The company operates in two segments, Cable; and Engineering, Procurement and Construction (EPC).

To know more, check out Vindhya Telelinks company fact sheet and quarterly results.

Vindhya Telelinks Dividend History (2019-2023)

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	12	10	10	10	15
Dividend payout ratio (%)	7.5	32.1	4.4	6.1	9.6
Dividend Yield (%)	0.9	2.3	1.2	1	0.9

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#4 Nirlon

Fourth on the list is Nirlon.

For the financial year 2023, the board of Bosch has declared a dividend of Rs 11 or 110% on the face value of Rs 10 per share.

The record date for the same is 5 September 2023.

The company has remained a consistent dividend payer. Since 2002, the company has declared 29 dividends.

The five-year average dividend payout ratio stands at 59.4%. The dividend yield over the past five years has averaged 2%.

Nirlon is mainly engaged in the manufacturing and marketing of tyre cord yarn, industrial fabric, nylon chips, conveyor belts and fan and V-belts. The company also operates in the real estate business.

To know more, check out the Nirlon company fact sheet and quarterly results.

Nirlon's Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	0.8	0.8	0.8	8	26
Dividend payout ratio (%)	12.1	10.6	6.2	56.6	211.5
Dividend Yield (%)	0.4	0.4	0.3	2.9	6.3

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#5 Metro Brands

Last on the list is Metro Brands.

For the financial year 2023, the board of Metro Brands has declared a dividend of Rs 1.5 or 30% on the face value of Rs 1 per share. The record date for the same is 1 September 2023.

The company has declared 4 dividends since 2022.

The five-year average dividend payout ratio stands at 24.2%.

The company is a retailer of fashion footwear bags and accessories operating in the premium and economy categories.

Metro Brands is one of the largest Indian footwear speciality retailers and is among the top aspirational Indian brands in the footwear category.

To know more, check out Metro Brands' company fact sheet and quarterly results.

Metro Brands' Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	0.5	0.6	0.7	1.5	2.3
Dividend payout ratio (%)	8.6	10.1	12.5	61.1	28.7
Dividend Yield (%)	0	0	0	0	0.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

Other stocks paying dividend in September 2023

Apart from the above, here are other companies paying out dividends in September 2023.

Company Name	Record Date	Dividend %
Triveni Engineering & Industries Ltd.	01-Sep-23	325
Ganesh Housing Corporation Ltd.	01-Sep-23	24
Gujarat State Petronet Ltd.	01-Sep-23	50
eClerx Services Ltd.	01-Sep-23	10
NBCC (India) Ltd.	01-Sep-23	54
Ram Ratna Wires Ltd.	01-Sep-23	50
Baid Finserv Ltd.	01-Sep-23	5
Swastik Safe Deposit & Investments Ltd.	01-Sep-23	10
SKP Bearing Industries Ltd.	01-Sep-23	10
Syrma SGS Technology Ltd.	01-Sep-23	15

Data Source: Ace Equity

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...