5 Dividend Paying Stocks In October 2021

Dividend are paid to shareholders' from the company's profit and the profit left unpaid or not distributed as dividend among company's shareholders forms the company's free reserves and surplus.

Importantly as some of the companies pay-out dividend regularly, it is important to note that dividend payment is to be completed within 30 days of its approval i.e. eligible shareholders determined for dividend pay out as on record date should receive the dividend amount before the dividend payment date or issue date.

1. Universal Autofoundry:

The company is into manufacturing and selling of iron castings to the automotive and engineering industries. The product line of the company includes lift arms, adaptor plates, brake and control housings, rocker, brackets, suspension and engine mounting, and brake drums.

Universal Autofoundry is a small cap scrip with a m-cap of Rs. 16.53 crore. For the financial year ended March 2021, the board of the company recommended a final dividend of Rs. 0.5 per share of Rs. 10 (Dividend -5%). Record date as fixed for determining the shareholders who will be eligible for this dividend pay-out was fixed at October 1, 2021, while the stock turned ex-dividend in respect of this declared dividend on September 30, 2021.

The dividend, upon approval at the company's AGM,  scheduled to be held on Friday, 17th September, 2021,  will be paid on or after Friday, 17th September, 2021 but within 30 days from the declaration of dividend at Annual General Meeting as provided in the Companies Act, 2013. 

LTP: Rs. 52.25

2. Asian Granito:

Established in the year 2000, Asian Granito India is amongst the leading ceramic companies in the country. The company's offerings include tiles, marble & quartz and bathware. The company's market cap stood at Rs. 966 crore.

The tiles company announced a final dividend of Rs. 0.5 for the fiscal year 2020-21 for which the record date is decided at October 12. In the last 5 years, the company has announced a maximum final dividend of Rs. 1.3 per share for the financial year ended 2018.

3. Tata Consultancy Services:

The country's leading software major TCS in its board meeting scheduled on October 8 will consider recommending second interim dividend for the financial year 2022. Previously, the IT company decided on paying out Rs. 7 as first interim dividend for the Fy 2022 for which the stock turned ex-dividend on July 15, 2021.

For the year ending March 2021 Tata Consultancy Services has declared an equity dividend of 3800.00% amounting to Rs 38 per share. At the current share price of Rs 3753.00 this results in a dividend yield of 1.01%.

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Established in the year 1978, the company is a leading fertilizer and chemical manufacturing company in the public sector. The company's two divisions are namely fertilizers and the other industrial products. Products of the company include ammonia/urea, formic acid and carbon dioxide and hydrogen peroxide.

For the fy ended 2021, the company has announced a final dividend of Rs. 1.78 (dividend %-17.8 percent) for which the stock shall turn ex-dividend on October 20, 2021. On the ex-date, the scrip is adjusted for dividend pay-out. In the past, the company has announced an interim dividend of Rs. 1.2 per share for the FY 2021.

Considering the dividend pay-out and the stock's last trading price of Rs. 83.1, the dividend yield equates to 3.59.

This PSU company is again a small cap scrip with a market cap of Rs. 4584 crore.

5. HCL Tech:

This tech company offering innovative solutions around Digital, IoT, Cloud, Automation, Cybersecurity, Analytics, Infrastructure Management and Engineering is a large cap scrip.

The company's board meet is scheduled for October 14, 2021 and in that besides quarterly results, the company will also deliberate on its 3rd interim dividend for the fiscal year 2022.

Earlier the company has declared two interim dividends of Rs. 6 each per share.

5 Dividend paying stocks in October 2021

 

Stock	Dividend type	Dividend Amount	Record date	Ex-dividend date
Universal Autofoundry	Final dividend	Rs. 0.5	1.10.2021	30.09.2021
Asian Granito	Final dividend	Rs. 0.5	12.10.2021	11.10.2021
Tata Consultancy Services	Second interim dividend	To be declared	19.10.2021	14.10.2021
Rashtriya Chemicals and Fertilisers	Final dividend	Rs. 1.78	21.10.2021	20.10.2021
HCL Technologies	Interim dividend	To be declared	23.10.2021	21.10.2021