The earnings season in the last quarter of the financial year generally goes on for a bit more time than the previous three quarters due to the wrapping up of the entire financial year. As the earnings are coming up, here are 3 companies that are all set to cheer investors with a good dividend payout next week. All these companies are trading at a dividend yield of over 3%.
ITC Limited
ITC Ltd (NS:), an FMCG giant with a market capitalization of INR 5,48,262 crores has proven to be a goldmine for investors in the last 12 months, as the stock delivered a 64.7% return, becoming the top-performing stock in this period. The company closed FY23 with a record revenue of INR 72,990.21 crores, a 16.7% YoY jump which consequently lead to a 25.5% YoY increase in net income to INR 19,142.62 crores.
Despite a massive return (from a large-cap standard), the stock is still trading at a good dividend yield of 3.69% and it is paying a dividend of INR 9.5 per share (INR 6.75 – final & INR 2.75 – special), the ex-dividend date of which is 30 May 2023.
Vedanta Limited
Vedanta Ltd (NS:) is a natural resources company with a market capitalization of INR 1,09,836 crores. It is a gem when it comes to dividend stocks and no dividend portfolio is complete without the inclusion of it. After closing FY23 with a net income of INR 10,577 crores, the company announced a massive dividend payout of INR 6,877 crores, amounting to INR 18.5 per share, the ex-dividend date of which is 30 May 2023.
You will be surprised to know, the company has announced a total dividend of INR 101.5 in FY23. Comparing it with the current stock price of INR 297, that’s a gigantic yield of 34.17%. No other company in the metal space is even close to Vedanta in terms of dividend payout. However, one thing to note is that Vedanta’s hefty payouts are primarily for the debt servicing of its parent company – Vedanta Resources.
D.B.Corp Limited
D.B.Corp Ltd (NS:) is a small-cap print media company with a market capitalization of INR 2,271 crores. FY23 was a good year for the company as it clocked the highest revenue in three years, at INR 2,168.25 crores and a net profit of INR 169.08 crores. It is a regular dividend-paying small-cap which is rare to come across and has maintained a good dividend payout ratio of 0.54 in the last 3 fiscal years (average).
The company has now announced a dividend of INR 3 per share, the ex-dividend date of which is 31 May 2023 and the stock is currently trading at a dividend yield of 7.49% after accounting for a 56% return in the last 12 months.
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