Dividends play a crucial role as a source of income for investors. While the prominence of dividends has shifted with the rise of technology-driven and data-centric investing, it remains a significant factor for those seeking steady returns. Here’s a compilation of companies that have declared dividends in 2023 and are known for providing attractive dividend yields.
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| Company | Dividend % | Dividend (INR) | Ex-Date | Dividend type |
|---|---|---|---|---|
| Vedanta Ltd. | 1850 | 18.50 | 23-03-2023 | Interim |
| Coal India Ltd. | 52.5 | 5.25 | 08-02-2023 | Interim |
| Power Finance Corporation Ltd. | 35 | 3.50 | 24-02-2023 | Interim |
| NTPC Ltd | 42.5 | 4.25 | 03-02-2023 | Interim |
| HCL Technologies Ltd. | 900 | 18.00 | 28-04-2023 | Interim |
| REC Ltd. | 32.5 | 3.25 | 09-02-2023 | Interim |
| Hindustan Zinc Ltd. | 1300 | 26 | 29-03-2023 | Interim |
| Hinduja Global Solutions Ltd. | 25 | 2.5 | 06-03-2023 | Interim |
| NMDC Ltd. | 375 | 3.75 | 24-02-2023 | Interim |
| Embassy Office Parks REIT Ltd. | Interest distribution of: 5.32+0.69+2.29 | 03-02-2023 | Interim | |
| GAIL India Ltd. | 40 | 4 | 21-03-2023 | Interim |
| IndiGrid InvIT Fund Ltd. | – | Interest distribution: 0.5 | 31-01-2023 | ROC |
| Banco Products (India) Ltd. | 400 | 8 | 24-02-2023 | Interim |
| Renaissance Global Ltd. | 30 | 3 | 19-07-2022 | Final |
| Taparia Tools Ltd | 775 | 77.5 | 16-03-2023 | Interim |
| Steel Authority of India Ltd. | 10 | 1 | 24-03-2023 | Interim |
| Styrenix Performance Materials Ltd. | 800 | 80 | 24-02-2023 | Interim |
| Geojit Financial Services Ltd. | 300 | 3 | 01-07-2022 | Interim |
| ITC Ltd. | 600 | 6 | 15-02-2023 | Interim |
| Indian Metals & Ferro Alloys Ltd. | 50 | 5 | 03-11-2022 | Interim |
| Banco Products (India) Ltd. | 400 | 8 | 24-02-2023 | Interim |
Dividends, being payments made by companies to shareholders from their profits, are a way of rewarding investors. The taxation of dividends in India depends on the type of dividend and the holding period of the shares.
1. Qualified Dividend:
Conditions for eligibility:
Paid by an Indian or foreign company listed on an Indian stock exchange.
Declared, distributed, or paid after April 1, 2020.
Shareholder holds shares for more than 12 months before the record date.
Taxation: Taxed at a flat rate of 10% (plus surcharge and cess).
Additional Tax: If total dividend income exceeds INR 10 lakh, an additional 10% tax applies.
2. Ordinary Dividend:
Any dividend not meeting the conditions for qualified status.
Taxation: Subject to normal slab rates under Section 56(2)(i) of the Income Tax Act, 1961.
TDS: If total dividend income exceeds Rs. 5,000, a 10% (plus surcharge and cess) TDS applies.
1. Growth Expectations:
Dividend stocks may not show immense growth compared to high-growth companies.
2. Stable Income:
Ideal for those seeking a stable income over a more extended investment horizon.
3. Setting Goals:
Define annual return goals and choose stocks with an annual growth between 5% to 15% along with dividends.
Q1. Which are the top dividend yield stocks in India?
Vedanta Ltd., Hindustan Zinc Ltd, Coal India Ltd, T.V. Today Network Ltd, Bhansali Engineering Polymers Ltd, Balmer Lawrie Investment Ltd, Coal India Ltd.
Q2. Is it compulsory for a company to give dividends to investors?
No, it is at the discretion of the board of directors to decide on dividend distribution.
Q3. How many times can a company announce a dividend?
Companies can declare dividends quarterly, monthly, annually, or as per their choice.
Q4. What is the ex-date?
The ex-date is the date on or after which a security is traded without a previously declared dividend.
Q5. What is an interim dividend?
An interim dividend is a dividend paid by a company quarterly or monthly, not the final dividend, and may be released with the interim statement.
Investors should carefully analyze these factors before making investment decisions in dividend-paying stocks, ensuring alignment with their financial goals and risk tolerance.