7 Stocks To Buy Now To Receive Dividends From 250% To 20%

Markets are once again hovering around that 60,000 points mark. There has been some consolidation in the markets over the last few weeks. Here are a list of 7 stocks, which if you buy now, you would be entitled to dividends in the next couple of months.

What are dividends?

Dividends are declared from the profits of the company and distributed to shareholders based on the earnings of the company. It is good to invest in dividend paying companies, which can be a steady stream of revenues in the year's to come.

Taxation on dividends

Dividends are taxed and the dividends received are added to the total income of a person and tax is paid accordingly. So, if you are in the highest tax bracket, you may end up paying more tax on your dividends. It's important to note that the shareholders need to approve the dividends and these are declared by the board of directors of a company.

Stocks with dividends of upto 250%

Stock name	Dividend amount	Ex-date
Patanjali Foods	250%	Sept 23, 2022
Hinduja Global	250%	Sept 23, 2022
Evans Electric	20%	Sept 23, 2022
Elcid Investments	150%	Sept 22, 2022
Polyplex	210%	Sept 22, 2022
Mold Tek Tech	20%	Sept 22, 2022
SMS Pharma	30%	Sept 22, 2022

How investors should choose dividend paying companies?

At times dividends are declared when income is boosted by way of sale of an asset. This is not the right way to invest as this could be a one time dividend. The company should have a steady dividend paying track record. Do not looks for one time dividends. Sometimes dividends are declared on the basis of occasions. For example a large dividend on the completion of 50-years etc.

Good dividend paying companies in India

There are many good dividend paying companies in India. Some of these include Bajaj Auto, HeroMoto Corp, ITC. It is advisable to look for more long term track record before investing in dividend stocks. While we have mentioned some of the above stocks to buy based on their dividends, investors need to look at the more long-standing track record of dividends.

Good way to participate in the profits of the company

Dividends are a good way for existing shareholders to participate and share in the growth of the underlying business above and beyond the share price's appreciation. In India, most dividends are cash dividends, which are cash payments made on a per-share basis to investors. So, your stock holdings would determine the amount of dividends you receive.