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Top 3 Stocks Paying Dividends in December 2023

Nov 28, 2023

Top 3 Stocks Paying Dividends in December 2023

While the Indian stock market has been recovering since the pullback last year, market volatility remains high.

Not to mention we have the general elections in the coming year and markets tend to be more volatile during these big macro events.

Amid this volatility, having a passive source of income can be a great way to build long-term wealth.

Dividends create a stream of regular income for investors in addition to any growth they might witness from the capital appreciation.

However, picking dividend stocks for your portfolio can seem overwhelming because so many options exist.

In today's article, we look at the top 3 stocks that are set to offer dividends in December 2023.

#1 Panchsheel Organics

At the top of this list is Panchsheel Organics.

The company's board of directors on 10 November 2023, declared an interim dividend of Rs 0.8 per share for the financial year 2023-24.

The company has fixed 4 December 2023 as the record date for payment of this interim dividend.

Panchsheel Organics has declared a total of 16 dividends since 2013.

The five-year average dividend payout ratio stands at 11.4%. The dividend yield over the past five years has averaged 0.9%.

Panchsheel Organics is a leading manufacturer and exporter of Active Pharma Ingredients (APIs), intermediates & finished formulations (both human & veterinary), having a wide experience of more than three decades in the healthcare field.

For more details, see the Panchsheel Organics financial fact sheet and quarterly results.

Panchsheel Organics' Dividend History (2019-23)

  19-Mar 20-Mar 21-Mar 22-Mar 23-Mar
Dividend per share (Adj.) * (Rs) 0.0 0.0 0.9 0.4 3.6
Dividend payout ratio (%) 0.0 0.0 20.0 6.0 30.1
Dividend Yield (%) 0.0 0.0 2.4 0.3 2.1
*Adjusted for bonus issues and stock splits
Source: Equitymaster

#2 Rashtriya Chemicals and Fertilizers

Second on the list is Rashtriya Chemicals and Fertilizers.

For the financial year 2023, the board of Rashtriya Chemicals and Fertilizers declared a dividend of Rs 3.7 or 37% on the face value of Rs 10 per share.

The record date for the same is fixed as 13 December 2023.

The company has remained a consistent dividend payer. Since 2001, RCF has declared 27 dividends.

The five-year average dividend payout ratio stands at 44.5%. The dividend yield over the past five years has averaged 4%.

Rashtriya Chemicals & Fertilizers is a public sector undertaking (PSU) with 75% stake owned by GOI. The company is engaged in the manufacturing and marketing of fertilizers and industrial chemicals.

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

Rashtriya Chemicals' Dividend History (2019-23)

  19-Mar 20-Mar 21-Mar 22-Mar 23-Mar
Dividend per share (Adj.) * (Rs) 0.6 0.8 2.9 2.9 3.9
Dividend payout ratio (%) 42.0 32.0 75.6 42.8 30.2
Dividend Yield (%) 0.8 1.3 10.0 3.8 4.3
*Adjusted for bonus issues and stock splits
Source: Equitymaster

#3 Kovilpatti Lakshmi Roller Flour Mills

Last on the list is Kovilpatti Lakshmi Roller Flour Mills.

The company's board recently declared a dividend of Rs 2 (20% on face value) .

The record date for the same is 23 December 2023.

The company has declared a total of 7 dividends since 2002.

The five-year average dividend payout ratio stands at 6.3%. The dividend yield over the past five years has averaged 1.2%.

Kovilpatti Lakshmi Roller Flour Mills is a food production company based in Kovilpatti, Tamil Nadu, India.

The company is one of the largest flour mills in South India. It produces a variety of flour products, including wheat flour, atta, and maida.

For more details, see the KOVIL.L.MILL company fact sheet and quarterly results.

Kovilpatti Lakshmi Roller Flour Mills Dividend History (2019-23)

  19-Mar 20-Mar 21-Mar 22-Mar 23-Mar
Dividend per share (Adj.) * (Rs) 0.0 0.0 1.5 1.8 0.0
Dividend payout ratio (%) 0.0 0.0 18.5 13.2 0.0
Dividend Yield (%) 0.0 0.0 3.3 2.6 0.0
*Adjusted for bonus issues and stock splits
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.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Safe Stocks to Ride India's Lithium Megatrend

Lithium is the new oil. It is the key component of electric batteries.

There is a huge demand for electric batteries coming from the EV industry, large data centres, telecom companies, railways, power grid companies, and many other places.

So, in the coming years and decades, we could possibly see a sharp rally in the stocks of electric battery making companies.

If you're an investor, then you simply cannot ignore this opportunity.

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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...

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