4 Debt-Free Companies With High Dividend Yield Of Nearly 3.81%

Debt-free or zero-debt companies have better capabilities in terms of repaying loans. There are four debt-free companies with a high dividend yield of nearly 3.81 per cent that we have identified.

Debt-free companies have no creditors to make claims on the company's assets and can easily get a loan in case of any emergencies. Investing in a debt-free company means the company has no debt strings attached and has no interest repayment burden, thus insulating debt-free companies from changes in the interest rate regime.

The four debt-free companies are Bhansali Engineering Polymers Ltd, Ambika Cotton, MOIL Ltd, and Seshasayee Paper and Boards Limited. Given below are the details of each.

1. Bhansali Engineering Polymers Ltd

Bhansali Engineering Polymers Ltd is a vertically integrated petrochemical company that manufactures ABS (Acrylonitrile Butadiene Styrene), a raw material used extensively across industries like automobiles, home appliances, telecommunications, luggage, and other sectors. It is a small-cap company incorporated in 1984 that also manufactures resin. Its current market capitalisation is Rs 1,921.19 crore.

Based on the current market price of Rs 115.80 per share of the stock, the dividend yield is 2.60 per cent. The company has a good dividend track report and has consistently declared dividends for the last five years. This small-cap company declared its last dividend in October 2022.

Recently on May 2, 2023, in its company board meeting, a proposal for the issuance of bonus equity shares was announced, which is subject to requisite approvals.

2. Ambika Cotton Mills Limited

Ambika Cotton Mills Limited is an established player in the international and domestic yarn market with exports constituting roughly sixty percent of its revenues. The company's headquarters is in Coimbatore in Southern India. The company was incorporated in 1988 and has five manufacturing units situated in Dindigul, Tamil Nadu with a total spindle capacity of 1,08,288 for compact spinning, and knitting. Its current market capitalisation is Rs 867.05 crore.

The company has a good track record of paying dividends in the last few years. For the financial year March 2022, Ambika Cotton Mills declared an equity dividend of 350.00 per cent (Rs 35 per share) which was paid by September 2022. As per the latest stock price of Rs 1,514.50, the dividend yield results in 2.32 per cent.

The share price of the company has fallen sharply by 20.32 per cent in the last one year while in three years, it has surged massively by nearly 129.47 per cent.

3. MOIL Ltd

MOIL Ltd is a state-owned manganese ore mining company headquartered in Nagpur, India, having a miniratana status. It is a mid-cap company with a market share of 50 per cent and is one of the largest producers of manganese ore in India. Currently, the company operates 11 mines, seven located in the Nagpur and Bhandara districts of Maharashtra and four in the Balaghat district of Madhya Pradesh. All these mines are about a century old. The company has an ambitious vision of more than doubling its production to 3.00 million tonnes by 2030. The current market capitalisation of the company is Rs 3,214.05 crore.

The company has a good dividend track report and has consistently declared dividends for the last five years. For the year ending March 2022, MOIL declared an equity dividend of 60 per cent (Rs 6) per share. At the current stock price of Rs 157.95 this results in a dividend yield of 3.81 per cent. The last dividend declared in February was an interim dividend of Rs 3 per share(or 30 per cent).

In the last one year, the share price declined by 4.3 per cent while in three years it has jumped up by 24.57 per cent.

4. Seshasayee Paper and Boards Limited

Seshasayee Paper and Boards Limited (SPB),Paper and Boards Limited (SPB), the flagship company belonging to 'SPB-ESVIN GROUP', owns and operates an Integrated Pulp, Paper, and Paper board Mill at Pallipalayam, Erode, District Namakkal, Tamilnadu, India A Paper Mill at Tirunelveli District, Tamilnadu, India SPB, incorporated in June 1960. The current market capitalisation of the company stands at Rs 1,788.93 crore.

In the last five years, the company has paid dividends regularly. For the year ending March 2023, Seshasayee Paper and Boards has declared an equity dividend of 300 per cent (Rs 6 per share). At the current share price of Rs 288.20, it results in a dividend yield of 2.08 per cent. The company has set June 7 as the record date to record the eligible members for dividends.

The share price of the company has rallied by 51.25 per cent in the last one year while in three years, it has massively surged by nearly 115.88 per cent.

Important thing about dividends in this article
We could have factored in special dividends and one off-dividends. It is highly possible that such companies maybe included in the list. Sometimes companies tend to declare huge dividends on account of sale of an asset. Apart from this another important think to remember is that dividends would not be consistent or the same every year. So, we have not factored that as well in our current write-up.

Disclaimer
This article is for information purposes only and highlights stocks that declared a good on dividends. The article should be treated as informational and not an advisory to invest. Neither the author, nor Greynium Information Technologies Pvt Ltd should be held responsible for decisions based on this article.