250% To 1250% Dividend Payout: 2 SmallCap Stocks Turn Ex-Dividend On August 25 For Rs 25/Share Dividend Each

Two smallcap stocks namely Gulf Oil Lubricants and VST Tillers Tractors will be in focus on Friday as they trade ex-dividend for their payout of Rs 25 dividend per share each for financial year 2022-23. Ahead of the ex-dividend, VST Tillers hit a fresh 52-week high, while Gulf Oil also neared its 1-year as well. Both stocks have given double-digit returns so far in the current year.

Dividends are paid by listed companies from the profits they earned in a respective financial year. Notably, dividends are announced on a specific period, most on a quarter-on-quarter basis. It is not necessary that every listed firm on BSE or NSE doesn't need to be paying dividends. However, that is not the case with Gulf Oil and VST Tillers as they both hold consistent track records of rewarding their shareholders with such incentives.

Gulf Oil Lubricants:

This small-cap stock in the oil & gas segment has recommended payment of a dividend of Rs 25 per share on the face value of Rs 2/‐ each for the Financial Year ended March 31, 2023, subject to approval of Members in the ensuing 15th Annual General Meeting (AGM) to be held on September 1, 2023.

In percentage terms, the dividend payout is 1250%. This is also higher compared to the dividend of Rs 5 per share or 250% paid in FY22.

It said, the dividend, as recommended by the Board and if approved at the ensuing AGM, will be paid to Shareholders holding equity shares of the Company, either in electronic form or in physical form as on the
record date i.e. August 25, 2023.

Hence, the stock will turn ex-dividend on August 25 as well.

Ahead of the ex-dividend date, Gulf Oil's share price ended at Rs 626.50 apiece down by 1%o n BSE. The stock however touched an high of Rs 640 apiece in an intraday trade on Thursday, which was near its 52-week high of Rs 644 apiece.

In a month, the stock has gained by nearly 29% on BSE, while its six-monthly upside is a whopping 51.2%. So far in 2023, the stock has gained by 47%.

Backed by Hinduja Group, the company is an established player in the Indian Lubricants Industry. With operations primarily in the Automotive and Industrial segments and a leading presence in the open market through a stellar distributor network, the company supplies directly to OEMs and other B2B customers (Industries, Infrastructure, Mining and fleet Customers, State Transport and Government Undertakings).

VST Tillers Tractors:

The company has recommended a dividend of Rs 25 per equity share having a face value of Rs 10 each. In percentage terms, the dividend payout would be 250% for the financial year FY23. This payout is higher compared to the Rs 20 or 200% dividend paid in fiscal 2021-22.

This dividend will apply to those members whose names appear in the Register of Members as of the Record Date i.e. August 25, 2023. That being said, the stock turns ex-dividend on Friday.

The dividend payout is subject to the approval of members at the ensuing Annual General Meeting (AGM).

Notably, the dividend will be distributed on or after September 01, 2023, if approved by the members at the 55th AGM. The total payout would be to the tune of Rs 21.60 crore.

Ahead of turning ex-dividend, VST Tillers' share price witnessed a huge demand on Thursday. The stock ended at Rs 3334.45 apiece on BSE, up by 6.4%. The stock also touched a new 52-week high of Rs 3,351.00 apiece during this day.

In the past five trading sessions, the stock has rallied nearly 11%. Year-to-date, the upside is around 43.4% on BSE.

The stock is smallcap and belongs to the automobile sector.

Founded in 1967, the company is now the largest manufacturer of Power Tillers in India. With an eye on global opportunity, the company has expanded its presence in more than 20 countries over a decade and established itself as the most preferred brand for the compact tractors

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