There are several companies that have declared decent dividends, as it is time of the year, when most companies declare dividends, following their annual results. Here are three stocks, where if you buy now, you will receive dividends
Britannia, Bajaj Auto and Swaraj Engines attractive on dividends
|Company name||Amount of dividend||Ex dividend date|
|Britannia Industries||Rs 56.50 per share||June 20, 2022|
|Bajaj Auto||Rs 140 per share||June 30, 2022|
|Swaraj Engines||Rs 80 per share||June 30, 2022|
Now, if you see Swaraj Engines is very attractive from the point of dividend yields, generating almost 5.22% on the current stock price of Rs 1533. However, investors wishing to buy the shares of Swaraj Engines should also look at other factors apart from the dividend yield on the stock, especially the continuity of dividends. For example, if the fundamentals of the stock change, the company may not be in a position to declare the same dividends as that of the previous year.
However, our belief is that all the three companies are in a strong position to declare dividends in the future as well.
Buy the shares on declines
If you get some of these shares on declines, they could be attractive to buy as well. In fact, as the price of the stock falls the dividend yields on the stock tend to get even more attractive. The valuations for some of these companies are not bad, given the recent fall in the share price. In fact, Britannia Industries offers a dividend yield of more than 4%, which makes the stock attractive to buy. However, the company's margins maybe impacted to some extent following the hike in wheat and wheat related products. However, from term perspective the fundamentals of the company are very strong. One of the reasons some of these dividend paying stocks look attractive is the fall in their share price. For example, Swaraj Engines shares have fallen from levels of Rs 2000, while Bajaj Auto has dropped from levels of Rs 4000.
Dividend companies should be a part of your portfolio
We have been telling investors that some of the growth stocks being chased by investors could be over done, given that they do not have a dividend paying track record. Some of the companies above have been declaring dividend non stop and some of them are even debt free stocks like Bajaj Auto. This makes them very attractive. In fact, in this market dividend yield of near 4 and 5%, with good strong fundamentals is hard to find. All of the three stocks above have fallen drastically from their 52-week high levels, which is one of the reasons to buy these stocks. If you get some of these stocks at lower levels it would be a good idea to accumulate them.
Investors are advised caution as the markets have become exceedingly volatile. Neither Greynium Information Technologies, nor the author would be responsible for any losses based on a decision reading the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets.