5 Stocks Declaring More than 400% Dividend in September 2023

Dividends have traditionally held a significant appeal for investors, serving as a dependable income stream from their investments.

Particularly in the early days of the stock market, when technology had less dominance, dividends ranked among the top considerations for novice investors.

They can be a reliable source of income even during temporary downturns in the unpredictable stock market.

Given these advantages, it's no wonder that dividend investing holds significant importance in many investors' strategies.

Let's explore five stocks that have declared dividends exceeding 400% in September 2023.

#1 Sharda Motor

Leading the list is Sharda Motor.

The company's board has recommended a final dividend of Rs. 17.27 per equity share of face value of Rs 2 each (i.e., 864% of face value per equity share) for the financial year 2022-23.

The record date for the same is 19 September 2023.

The company has distributed 14 dividends since 2013.

The five-year average dividend payout ratio stands at 3.8%. The dividend yield over the past five years has averaged 0.5%.

Sharda Motor Industries manufactures, assembles and sells auto and white goods components to OEMs.

It is the market leader in manufacturing exhaust systems, catalytic converters, independent suspension, and pressed parts- white goods products.

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

Sharda Motor's Dividend History (2018-2022)

	18-Mar	19-Mar	20-Mar	21-Mar	22-Mar
Dividend per share (Adj.) * (Rs)	0.5	0	0	0.5	8.2
Dividend payout ratio (%)	1.9	0	0	2	15
Dividend Yield (%)	0.6	0	0	0.7	1.1

*Adjusted for bonus issues and stock splits
Data Source: Equitymaster

#2 AIA Engineering

Second on the list is AIA Engineering.

For the financial year 2023, the board of AIA Engineering has declared a dividend of Rs 16 or 800% on the face value of Rs 2 per share.

The record date for the same is fixed as 12 September 2023.

AIA Engineering has remained a consistent dividend payer. Since 2006, the company has declared 22 dividends.

The five-year average dividend payout ratio stands at 20.6%. The dividend yield over the past five years has averaged 0.8%.

AIA Engineering is a developer and manufacturer of high chrome casting products. The company offers grinding media, shell liners and diaphragms, including partition walls, discharge diaphragms, drying chamber diaphragms and dapple rotator diaphragms.

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

AIA Engineering's Dividend History (2019-2023)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	9	27	9	9	16
Dividend payout ratio (%)	16.6	43.1	15	13.7	14.3
Dividend Yield (%)	0.5	2	0.4	0.6	0.6

*Adjusted for bonus issues and stock splits
Data Source: Equitymaster

#3 GMDC

Third on the list is GMDC.

The board of Gujarat Mineral Development Corporation has revised the dividend amount to Rs 11.45 per share or 573%, having a face value of Rs 2 each. Earlier, the board had fixed a dividend of Rs 9.1 per share.

The record date for the same is 22 September 2023.

With a good history of dividend payouts, the company has declared 24 dividends since 2000.

The average dividend payout ratio for five years stands at 23.3%. The dividend yield over the past five years has averaged 2.9%.

GMDC Ltd is a mining and mineral processing company. The company is the largest merchant seller of lignite in India. It offers lignite for various industrial units, including textiles, chemicals, ceramics bricks and captive power.

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

GMDC's Dividend History (2018-2022)

	18-Mar	19-Mar	20-Mar	21-Mar	22-Mar
Dividend per share (Adj.) * (Rs)	3.5	2	2	0.2	4.3
Dividend payout ratio (%)	26	28.9	44	-16.6	33.9
Dividend Yield (%)	2.8	2.5	6.4	0.4	2.3

*Adjusted for bonus issues and stock splits
Data Source: Equitymaster

#4 GOCL Corporation

Fourth on the list is GOCL Corporation.

GOCL Corporation's board has declared a total dividend of Rs 10 each for the financial year 2023.

This includes a final dividend of 250% or Rs 5 per share and a special dividend of 250% or Rs 5 per share.

The record of both dividends is 14 September 2023.

The company has a solid track record of consistently declaring dividends over the past five years. It has declared a total of 27 dividends since 2002.

The five-year average dividend payout ratio stands at 27.9%. The dividend yield over the past five years has averaged 2.3%.

The company is a multi-division, multi-location company operating businesses in commercial explosives, energetics mining chemicals & accessories and realty.

The company is multi-locational, with factories and service centers across India.

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

GOCL Corporation's Dividend History (2019-2023)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	2	4	6	5	10
Dividend payout ratio (%)	24.4	40	37.8	14.1	23.5
Dividend Yield (%)	0.7	3.1	2.7	1.8	3.4

*Adjusted for bonus issues and stock splits
Data Source: Equitymaster

#5 Eldeco Housing

Last on the list is Eldeco Housing and Industries.

Eldeco Housing announced a dividend of Rs 8 per equity share of face value Rs 2 (400%) for the financial year 2023.

The record date for the same is 15 September 2023.

In the last five years, the company has consistently made dividend payments. It has declared a total of 22 dividends since 2002.

The five-year average dividend payout ratio stands at 7.9%. The dividend yield over the past five years has averaged 1.6%.

Eldeco Housing and Industries is a leading real estate developer in Lucknow. The company is engaged in promotion, construction, development and sale of townships, residential, commercial properties and developed plots.

EHIL is a part of Eldeco Group, one of North India's prominent real estate developers with expertise in housing and commercial spaces in Tier I, Tier II and Tier III towns.

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

Eldeco Housing's Dividend History (2019-2023)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	0.7	0.7	1.6	8	8
Dividend payout ratio (%)	1.8	1.8	2.9	15.5	17.7
Dividend Yield (%)	1.2	2.4	2.1	1.1	1.4

*Adjusted for bonus issues and stock splits
Data Source: Equitymaster

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...