When a public company earns profits, they have two options for utilising it. One is investing back in the company's growth, and the second is rewarding their loyal investors in the form of dividends for being patient with them.
Usually, companies announce two types of dividends, interim and annual. Interim dividends are announced and are to be paid in the middle of the year before the company's annual general meeting and release of annual financial statements. On the other hand, the company announces and pays annual dividends after its AGM and release of financial statements.
If you are looking to invest your corpus in some dividend-paying companies, here is a list of a few upcoming stocks in September 2022.
LIC Housing Finance
LIC housing finance ltd. is a leading company in the housing finance industry supported by none other than LIC, with a market capitalization of ₹234.13 billion. 425% of the dividend has been declared by the company, which would go ex-dividend on September 19, 2022, currently trading at ₹425.55 per share on NSE.
Indian media conglomerate Zee Entertainment has declared an annual dividend of 300% with an ex-dividend on September 15, 2022. The company has a market capitalization of ₹246.28 billion. The stocks of the company are currently trading at ₹256.35 per share at NSE.
A power generation giant Bharat Bijlee has declared an annual dividend of 300% with an ex-dividend date on September 19, 2022. The company has a market capitalization of ₹11.59 billion, currently trading at ₹2050.00 per share at NSE.
Manufacturer and seller of glass products and packaging company has declared the final dividend of 250% with an ex-dividend date on September 13, 2022. The market capitalization of the company is ₹21.63 billion, currently trading on NSE at ₹334.30 per share.
The seventh-largest capacity of polyester (PET) film globally, polyplex corporations, has declared an annual dividend of 210% with an ex-date on September 22, 2022, currently trading at ₹2,200 per share at NSE. The company has a market capitalization of ₹69.05 billion.
Investing in companies delivering good results in terms of dividends only shall not be the only factor to look at before making any investments. Getting attracted by high dividend payments could be harmful to your capital appreciation as a high dividend also means low reserves for the company's future growth.
When a company does not invest in its growth, the growth rate of your capital will also go down. You have to set a financial objective before investing and keep a balance between capital appreciation and passive income in the form of a dividend.
Anushka Trivedi is a freelance financial content writer. She can be reached at anushkatrivedi.com
Disclaimer: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.