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Dividend Paying Stocks in December 2023

Introduction:

When a company wish to distribute a portion of its profits among the shareholders, it announces a dividend. It serves a dual purpose for companies – firstly, it helps them reward their loyal shareholders, and secondly, it serves as an incentive to attract more investors to invest in the company. For investors, investing in dividend-paying stocks provides them an opportunity to make additional income apart from capital appreciation.

In this article, you will find a list of top dividend-paying stocks in India in December 2023. You will also get to know a brief overview of financial health and other crucial parameters regarding these stocks so that you can make informed investment decisions. Keep reading.

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Dividend-paying stocks in December 2023

Below are the top dividend-paying stocks in India in December 2023:

  • Panchsheel Organics Limited

First on this list of top dividend-paying stocks in December 2023 is Panchsheel Organics Limited. Incorporated in 1989, it is a manufacturer and exporter of Active Pharma Ingredients (APIs), associated Intermediates, Pellets, Specialty Chemicals, and finished formulations for both human and veterinary use. The company has more than three decades of experience in the healthcare industry.

On 10 November 2023, the company’s Board of Directors announced an 8% interim dividend to its shareholders. It means that they will get a dividend of Re. 0.8 per share on the face value of Rs.10. The record date for the payment of this interim dividend has been set as 4 December 2023. The average five-year dividend payout ratio of the company stands at 11.4%.

  • Rashtriya Chemicals and Fertilisers Limited

The second company on this list of top dividend-paying stocks in December 2023 is Rashtriya Chemicals and Fertilisers Limited. It is one of the leading producers of fertilisers, such as methanol, sodium nitrate, ammonium bicarbonate, methylamines, dimethylacetamide, and dimethyl formamide in India. The company is a PSU with more than 75% stakes held by the Government of India.

On 30 May 2023, the company announced a final dividend of 37% for its shareholders based on its Q2 earnings. It means that the shareholders will receive a dividend of Rs. 3.7 per share on a face value of Rs. 10. The company has fixed the record date for the payment of the dividend as 13 December 2023. The five-year average dividend-payout ratio of the company stands at 44%, making it one of the most consistent dividend-paying stocks in India.

  • Kovilpatti Lakshmi Roller Flour Mills Limited 

The third and last company on this list of top dividend-paying stocks in December 2023 is Kovilpatti Lakshmi Roller Flour (KLRF) Mills Limited. It is a leading food-production company with its headquarters at Kovilpatti, Tamil Nadu. The company has recently ventured into the textile and engineering sectors. The primary food products include processed maida, atta, sooji, and wheat. Besides, textile and engineering products include spun yarn, open-end spun yarn, sheet metal fabrication, ferrous casting, etc.

On 23 November 2023, the company announced a final dividend of 20% for its shareholders. It means that they will receive a dividend of Rs. 2 per share on a face value of Rs. 10. The company has fixed the record date for the payment of the dividend as 22 December 2023. The average five-year dividend-payout ratio of the company stands at 6.3%. 

Things to consider while investing in dividend-paying stocks

Investing in dividend-paying stocks can fetch you an additional income apart from capital appreciation of your investment value. However, you should consider several factors before making any investment decision:

  • Company fundamentals

Analyzing the fundamentals of a company is paramount before investing in its stocks. The ratio of the dividend payment should not be your sole criterion while selecting stocks for investment. Instead, you should look for a company with strong fundamentals so that your capital remains safe. 

  • Debt levels

You must also evaluate a company’s debt-to-equity (D/E) ratio before investing in its stocks. Avoid investing in companies with high debt as they may find it difficult to sustain profits even after consistent performances.

  • Prevailing market trend

The prevailing market trend should influence your investment decision. If you’re a risk-averse investor, you can avoid investing when the markets are highly volatile.

To conclude

The top three dividend-paying stocks in December 2023 include Panchsheel Organics Limited, Rashtriya Chemicals and Fertilisers Limited, and Kovilpatti Lakshmi Roller Flour (KLRF) Mills Limited. You can add these stocks to your investment portfolio to ensure a regular stream of income. But before investing, you must consider various factors, such as company fundamentals, debt levels, etc. 

 

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