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Top dividend paying stocks in February 2024 you must add to your watchlist

08 Feb 2024

Introduction:

When a company makes a profit and distributes it among its shareholders, it announces the dividend payment. A dividend represents a company's choice to distribute a portion of its profits among its existing shareholders. This allocation is provided in the form of cash to individuals who hold the company's stock on a specified record date. Dividends can take various forms, such as interim, final, or special.

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As we enter the penultimate month of the financial year 2023-24, several promising companies are anticipated to pay dividends to their shareholders. By investing in the stocks of these companies, you can not only ensure steady capital appreciation but also make some additional income. 

Below are the top dividend-paying stocks in February 2024:

1. CESC Limited

First on this list of top dividend-paying stocks in February 2024 is CSEC Limited. It stands for Calcutta Electric Supply Corporation. CESC is a fully integrated electrical utility company, having operated since 1899, primarily engaged in the generation and distribution of power in Kolkata. The company holds the exclusive role of being the sole distribution company covering an extensive area of 567 square kilometers.

On 21 January 2024, the company’s Board of Directors announced an interim dividend of 450%, which comes out to be Rs. 4.5 per share considering the face value of Re. 1. The company has fixed the record date for the payment of the dividend as 1 February 2024. The company’s average dividend payout ratio for the last five years stands at 18.7%. 

As of 29 January 2024, CESC Limited’s shares were trading for Rs. 138.00 per share at both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

2. Havells India Limited

The second company on this list of top dividend-paying stocks in February 2024 is Havells India Limited. It is the fastest-growing manufacturer of electrical and power distribution equipment in India, with a product portfolio that spans a wide range. The company offers Industrial & Domestic Circuit Protection Switchgear, Cables & Wires, Motors, Water Heaters, Fans, CFL Lamps, etc., designed for domestic, commercial, and industrial applications. Additionally, its range includes Modular Switches, covering the entire spectrum of electrical requirements for households, commercial establishments, and industrial facilities.

On 16 January 2024, the company’s Board of Directors announced an interim dividend of 300%, with an ex-dividend date of 1 February 2024. At the face value of Re. 1, the dividend turns out to be Rs. 3 per share. As of 29 January 2024, the shares of Havells India Limited were trading for Rs. 1,305.75 per share on the NSE and Rs. 1,305.05 per share on the BSE.

3. Indian Energy Exchange

The third company on this list of the top dividend-paying stocks in February 2024 is the Indian Energy Exchange (IEX), India’s number one electricity exchange. On 17 January 2024, the company’s Board of Directors announced an interim dividend for FY24 of 100%. The ex-dividend date has been set as February 3, 2024.

As of 29 January 2024, the shares of IEX Limited were trading for Rs. 140.90 per share at the NSE and Rs. 140.95 per share at the BSE. The company’s dividend yield stood at 0.74%.

4. Balkrishna Industries Limited

Fourth on this list of dividend-paying stocks in February 2024 is Balkrishna Industries Limited. The company specialises in the manufacturing of a diverse range of off-highway tires, catering to various industries in the domestic market. This comprehensive range encompasses agricultural, industrial, material handling, forestry, lawn and garden, construction, and earthmoving tires.

The company announced an interim dividend of 200% on 17 January 2024. At a face value of Rs. 2, it turns out to be Rs. 4 per equity share. The company’s average dividend payout ratio for the last five years is 32.5%. As of 29 January 2024, Balkrishna Industries’ shares were trading for Rs. 2,525.25 per share at the NSE and Rs. 2,531.05 per share at the BSE.

To conclude

These are the top dividend-paying stocks in February 2024. Apart from these, some other prominent companies have also announced interim dividends for February 2024. They include Zensar Technology, NTPC, GAIL, Motilal Oswal, Sun Pharma, Torrent, Nestle, and MRF. You can invest in these companies before the record date to avail of the dividend-related benefits.

But when evaluating stocks that pay dividends, you must consider your investment objectives, the company's historical dividend track record, financial stability, and future growth potential.

 

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