3 Stocks To Buy Next Week For Good Dividends In 1-3 Months

Markets have fallen a fair bit from 52-week highs, offering investors an opportunity to look at stocks that offer good dividends. Here are a couple of stocks that look strong fundamentally and offer good dividends.

HPCL

The board of HPCL declared a dividend of Rs 14 per share. The said dividend will be paid within 30 days from the date of approval by the Shareholders in the ensuing Annual General Meeting scheduled to be held in the month of August 1 September 2022. The company has a consistent track record of paying dividends. One of the reasons to be buying the stock is that it is attractively priced though crude prices have been on a rise. The company has consistently paid dividends and given bonus shares as well in the past. We do not see a significant decline in dividends in the coming years. In fact, we believe that crude prices could be headed lower, post the war between Russia and Ukraine. Apart from this, we believe that if interest rates jump and economic growth slumps, crude prices could be headed much lower, which should benefit a company like HPCL. Overall, investors who have a long-term view of things can buy the stock.

Tata Steel

This is another company where the dividends are pretty decent. Tata Steel declared a dividend of Rs 51 per share. Apart from this, the stock is trading at a trailing p/e of just 4 times. The company has also declared a stock split and has reduced its debt significantly in the last year.

The dividend recommended by the Board is subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company scheduled to be held on Tuesday, June 28, 2022. The dividend, if approved by the shareholders at the AGM, will be paid, subject to deduction of tax at source, on and from June 30, 2022. Investors who buy the stock in the next few weeks would be entitled to good dividends. However, we wish to emphasize that investors who wish to buy the stock should note that metal stocks are highly volatile.

Britannia Industries

The board of directors of Britannia Industries has declared a whopping dividend of Rs 56.50 per share. The company in a BSE filing has said that "the Board of Directors of the Company at its meeting held on May 02, 2022, inter alia, has recommended the final dividend for the financial year ended March 31, 2022 @ 5650% i.e., Rs. 56.50 (Rupees Fifty Six and Fifty Paise Only) per equity share of Re. 1/- each to be declared at the 103rd Annual General Meeting of the Company." The ex-dividend date has been fixed on June 20, 2022. We believe that Britannia Industries is a good stock to own as the shares have fallen from levels of Rs 4152 to the current levels of Rs 3500. The stock is excellent to buy on declines for its healthy track record of dividends. On a trailing basis the stock is a little expensive to buy, given the price to earnings ratio of more than 50 times. The one thing worth mentioning is that inflationary pressures could tell on margins, in the coming quarters.