The practice of buying and keeping the shares of companies whose dividends are increasing annually is a great way to earn returns without investing more in the stocks, this practice is known as dividend growth investing. Since most equities pay dividends on a quarterly, annual, or semi-annual basis, this sets them apart from the great majority of stocks. Importantly, investors should generally be cautious of equities with dividend yields exceeding 10% as the distribution may be subject to decreases in times of economic uncertainty. As a result, investors should always conduct their own research.
The Bajaj Auto, a large cap auto company, we discuss below has announced a dividend to shareholders for March ending 2022. The company has declared a final dividend of 1400%. The company maintains a good track record of Dividends.
Bajaj Auto Ltd for the year ending March 2022 has declared an equity dividend of 1400.00% i.e. Rs 140 per share. The dividend was announced on 27 April 2022, According to the board meeting of Bajaj Auto Ltd held on 27 April 2022, the company in its filing to BSE has said, "In line with the Company's Dividend Distribution Policy, the Board of Directors has approved/recommended a dividend at the rate Rs. 140 per share (1400%) of face value of Rs. 10 each on equity shares for the financial year ended 31 March 2022. The said dividend, if declared by the shareholders at the ensuing Annual General Meeting, will be credited/dispatched on or around 30 July 2022. The Dividend, if declared, shall be paid to the equity shareholders whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Friday, 1 July 2022, which is the Record Date fixed for the purpose."
Ex-Dividend Date & Record Date- Investors should note that the ex-dividend date is 30 June 2022, while the announced record date is 1 July 2022.
The company has a good track record of dividend payout and has maintained it for the last 15 years. Since 2008, the company has declared 16 dividends, out of which 2 are interim dividends and 14 are final dividends. The company has consistently declared dividends for the last 5 years. Last year, the company declared a final dividend of 1400% amounting to Rs 140 per share.
Bajaj Auto's current market price (CMP) is Rs 3,837.25/share, after a gain of 1.39%, at the time of writing. The stock touched the 52-week low last year on 20 December at Rs 3,027/05/share. While the 52-week high of the stock recorded on 23 June 2021 was 4,259.65/share. The PE ratio is 17.76. PB ratio is 3.67. EPS-TTM is Rs 213.08.
The stock in terms of returns has given mixed returns over the years. In the last 1 week, the share price moved up nearly 3.46% and moved down nearly 0.04%. Over the last 3 months, it is moved up 5.09%a, and over the last 1 year, it gave a negative return of 9.86%. On long-term investment, it has given massive returns compared to 1-year returns. In 3 years it gave positive returns of 31.62% and in 5 years 34.01% positive returns respectively.
About - Bajaj Auto Ltd.
Bajaj Auto, the flagship company of Bajaj Group, is a two-wheeler and three-wheeler manufacturing company that exports to 79 countries across several countries in Latin America, Southeast Asia, and many more. Its headquarter is in Pune, India. It has acquired 48% of the KTM Brand which manufactures sports and super sports two-wheelers, which was 14% in 2007 when the company first acquired KTM.
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