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Best dividend-paying stocks in India in May 2023

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Best dividend-paying stocks – Are you looking to buy the best dividend-paying stocks in May 2023? Then is article will help you to find the 5 best dividend-paying stocks which have announced massive dividends and are turning ex-dividend this month.

Generally, large corporations such as ITC, Reliance, TCS, and others companies pay dividends regularly as they earn huge net income and their capex is also not much higher. There is no such rule that every company must give dividends regularly to its shareholders. The decision of issuing dividends is taken by the board of directors. Mostly these dividends are declared alongside their quarterly or annual results.

To build the trust of investors, companies give dividends by sharing their profits. The amount of dividend will vary depending upon the size of the company and the share price of the company.

before we deep dive into those five stocks, let’s look at what dividend means

What are dividends and examples?

Dividends are paid by corporations to their shareholders, giving a share of their profits in the form of cash. For example, TCS has declared a dividend of 20 rupees per share as an Interim dividend for their shareholders. Let’s say you own 100 TCS shares before the EX date of the dividend, then you will receive 2000 rupees as dividends to your bank account.

Dutch East Indian company was the first Indian company to give dividends to its shareholders.

What are the 4 types of dividends?

Dividends are categorized under 4 types and the company will distribute in any of the forms to its shareholders

  1. Cash Dividends – This is the most commonly used type of dividend-paying where a company directly distributes the cash to their shareholders. The amount of the dividend is announced when they release their quarterly or annual reports.
  2. Special Dividend – In a company sells its subsidiary and earns profit, then the company may consider sharing its profit with its shareholders.
  3. Property Dividend – If a company distributes some of its inventory or a physical product then it is called a property dividend. For example, if a jewelry company distributes a small piece of gold ornament to its shareholders.
  4. Stock Dividend – For example, if you own 200 shares of the Company, let’s say the company has decided to share 5% as a stock dividend. Then you will receive 10 additional shares.

Best dividend-paying stocks in May 2023

Well, there are numerous Indian companies that have already declared dividends and turning Ex-dividend in May. But we have identified 5 major stocks that give considerable amounts of dividends per share.

Best dividend-paying stocks in May 2023 #1 – Great Eastern Shipping Company

Great Eastern Shipping Company is a Mumbai-based shipping company that was founded in 1949 by the Seth family.

Dividend announced – Great Eastern Shipping Company announced 9/- per share as a dividend and the EX dividend date is 24th May 2023.

Best dividend-paying stocks in May 2023 #2 – Kennametal India

Kennametal India is a metalworking solution company based in India. Kennametal India provides a wide range of metalworking solutions to automotive, general engineering, aerospace, and many more.

Dividend announced – Kennametal India Company announced 20/- per share as a dividend and the EX dividend date is 25th May 2023.

Best dividend-paying stocks in May 2023 #3 – Trent

Trent is a retail-based company in India that is a subsidiary of Tata Group. The was established in 1998.

Dividend announced – Trent Company announced 2.2/- per share as a dividend and the EX dividend date is 25th May 2023.

Best dividend-paying stocks in May 2023 #4 – Anand Rathi Wealth

Anand Rathi is a financial service company that serves wealth management and stock advisory services. The company was established in 2006.

Dividend announced – Anand Rathi Wealth Company announced 7/- per share as a dividend and the EX dividend date is 29th May 2023.

Best dividend-paying stocks in May 2023 #5 – Rallis India

Rallis India is an Agro based company that produces and distributes crop protection chemicals, seeds, and other agricultural inputs. The company is a subsidiary of Tata Group.

Dividend announced – Great Eastern Shipping Company announced 2.5/- per share as a dividend and the EX dividend date is 30th May 2023.

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How to find the best dividend-paying stocks in India

Finding the best dividend-paying companies is not a big challenge. You can get updated news about the dividend companies listed in money control and another finance website. But figuring out which company will perform well and give consistent returns in the future is a challenging task. For that, you need to follow the below-mentioned points

  1. Research Dividend Metrics – There are some really important metrics to consider before investing in any dividend-paying stocks. One of the main metrics is the dividend yield. Consider investing in one of the stocks that have more than a 1% dividend yield at least.
  2. Consider Sector and Industry – Do consider investing in companies that have free cashflows and high-profit margins. Sectors like energy, metals, and some others have huge profit margins.
  3. Check dividend history – Check out the company’s dividend-paying history and its consistency. Also, analyze the dividends variance from one quarter to another quarter.

Best dividend-paying stocks list in May 2023

CompanyDividendEx-DateDividend type
Great Eastern Shipping Company924 May 23Interim
Kennametal India2025 May 23Interim
Trent2.225 May 23Interim
Anand Rathi Wealth7.029 May 23Interim
Rallis India2.530 May 23Final
Best dividend-paying stocks list

Highest-paying dividend stocks in History

There are a lot of companies that pay huge dividends every year, but mostly government-based companies give massive dividends to their shareholders. Below is the list of highest-paying dividend stocks

CompanyShare priceMarket capDividend Yiled
Coal India2391.47 lakh crore9.70%
Standard Industries30198 crore8.13%
Vedanta2811 lakh crore25.13%
HUDCO5611 thousand crore6%
ONGC1642 lakh crore7.93%
Best dividend-paying stocks list in May 2023

Conclusion

By here we hope that you have got your favorite dividend-giving stocks from our list. We only give educational information to our readers by analyzing the top stocks. Please do your own research on the best dividend-paying stocks for further.

how to get 1,000 per month in dividends

There is no such to make exact money through dividends every month. However, invest in companies that give massive dividends.

How many times ITC has given dividends

ITC has been given 27 times since 2001. In 2022, the company had given 2 times the dividends to their shareholders.

Do all stocks pay dividends?

No there is such a rule to pay dividends to shareholders. However, it is subject to the company and the board of directors’ approval.

What is the EX dividend?

The Ex-dividend is the date on which an investor must hold the company’s shares for receiving dividends. That means if anyone buys after the Ex dividend mentioned he/she is not subjected to receive any dividend even if he holds the shares.

What is the dividend yield?

The dividend yield is the ratio to measure the annual dividend income generated.
The formula to calculate the dividend yield is Dividend Yield = (Annual Dividend per Share / Stock Price) x 100