3 Quality Low/Zero Debt Stocks To Buy For Receiving Dividend 3-5 Times Annually

There are stocks that are good on dividend payments. And when considering such stocks you need to aim for stocks that come with consistent dividend payment and also offer a high dividend yield. These stocks can go well for investors looking for stable income stream like retired folks or soon to retire folks.

Typically dividend paying stocks have good cash flows and tend to be stable and hence less volatile. Also, when considering dividend paying stocks those with consistently rising dividend payout shall augur well for your portfolio. This is more true for less cyclical industries such as pharma, FMCG, banking, fertilisers that maintain a high and consistent dividend payouts.

So, here are few stocks that pay dividend 3-5 times:

Kewal Kiran Clothing

This is a small cap textile concern i.e. a quality stock with good financials in respect of strong liquidity as well as working capital position. The company at end-FY22 maintained its strong liquidity position with Rs3,154m in cash and cash equivalents.

Incorporated in 1981 and based out of Mumbai, the company is among the country's largest branded apparel manufacturers that carries all facets of textile i.e. designing, manufacturing and marketing.

Now, coming to its dividend track record, it pays dividend a good number of times i.e. Fy 22 alone has paid 3 interim dividend of 190% amounting to Rs. 19 and hence a dividend yield of 6.85% at the current share price of Rs. 277.55 per share. Earlier in Fy20, the company paid 5 times of Rs. 43.

Also, talking of its valuations, it is decently valued with a good RoE of over 15%.

Sun TV

This is a debt free entertainment stock again with a good dividend yield of over 3%. Further the stock can be looked for its consistent and many a times dividend dole out during a year. The stock is trading at attractive valuations with TTM PE lower than the sector. The company's other strengths include good management, strong cash on its books. Also, a brand equity cannot be under-estimated. Now coming to its dividend payment stream, the company has consistently been paying dividend from the last 10 years and in some years as in Fy 12 announced dividend as many as 4 times.

RITES

This is a Miniratna Category I CPSE that is trading close to its 52-week low. The stock is almost 27% down from its all time high price of Rs. 331. The small cap company is an engineering and consultancy company. The Company offers transport infrastructure consultancy, engineering and project management services.

Another quality, debt free stock with significant cash offers dividend multiple times in a year. In Fy22, the company declared dividend 4 times with dividend rate of 170% and amounting to Rs. 17. This takes the dividend yield to a huge 7% at the current share price of Rs. 243.

Disclaimer

The above stocks while being fundamentally sound need to be lapped up only after individual's own risk and reward understanding. Here the collation is just made for emphasising on the fact that some of the stocks offer dividend a good number of times.