This Smallcap Tyre Company To Soon Pay 200% Final Dividend, 800% Special Dividend

Special dividend generally come in cash form to shareholders and they are generally greater than normal dividends. Special dividend is paid out by company and frequently tied to a particular event. They are also known as extra dividend. Meanwhile, final dividend is declared at company's annual general meeting for a fiscal year. Companies give final dividends when it is recommended by the board and approved by its shareholders.

Leading tire and rubber company Goodyear India Ltd has also announced special dividend and final dividend. Check the details below:

1. Goodyear Announces 200% Final Dividend, 800% Special Dividend

The Board of directors of Goodyear in its filing dated May 26 and May 27, 2022 said, "Recommended a Final Dividend of Rs. 20/-per equity share of Rs. 10 each and Special Dividend of Rs. 80/-per equity share of Rs. 10 each, for the Financial Year ended March 31, 2022. The Final and Special Dividend, if approved by the members, at the forthcoming Annual General Meeting scheduled to be held on Monday, August 01, 2022 shall be paid within the statutory time limit to those members whose names would appear in the Register of members on Monday, July 25, 2022."

Ex-dividend date: It is worth noting that the ex-dividend date is 22 July, 2022.

2. Goodyear Dividend History

Goodyear has a great dividend track record and it has regularly declared dividends in the past 5 years. It has so far declared dividend 19 times since 2007. For year ending March 2022, Goodyear has announced an equity dividend of Rs 100 per share.

If today's current market price of the stock i.e. Rs 1006 apiece is taken into consideration, it will give a dividend yield of 9.94 which is highly attractive.

3. Stock outlook of Goodyear

The current market price of Goodyear India Ltd. is Rs 1006.15 apiece on NSE. The stock has touched its 52-week high of 1085 and 52-week low of Rs 783 apiece. The P/E is recorded at 22.5 which is lesser than the sector P/E of 35.19 and it is positive sign.

The EPS of the stock is 44.61. The stock has given a positive return of 1.91% in one year and a positive return of 18.92% in 5 years.

4. About Goodyear India Ltd

It is one of the world's largest tire companies and employees approximately 72,000 people, according to its official website. It manufactures its products in 55 facilities in 23 countries all over the globe. It was founded by Frank A. Seilberling. The market capitalization of the company at the time of writing this report is Rs 2,320 crore.

It is major strength is its surging net cash flow and cash from operating activity. The company is expected to give a good quarter and almost a debt free entity. Goodyear India declared a net profit of Rs 102 crore in FY2022. The company announced a revenue of Rs 603 crore, a jump of 5% YoY, in Q4 ending March 2022. The revenue for the FY 2022 recorded at Rs 2459 crore, a surge of 36%.