Eight Companies Confident to Raise Dividends for Shareholders

There are quite a few companies that are confident in their cash flow and profitability that they are sharing increased dividends with their shareholders. I believe this shows management’s confidence in their business prospects going into next financial year. There are many companies, but for now, below is the shortlist of eight companies for this week.

  • Visaka Industries Ltd. [2009, Rs 4.00, +33%] [2008, Rs 3.00]
  • ADF Foods Ltd. [2009, Rs 1.50 +50%] [2008, Rs 1.00]
  • Tilak Nagar Industries. [2009, Rs 2.50, +19%] [2008, Rs 2.10]
  • Keltech Energies Ltd. [2009, Rs 2.50, +100%] [2008, Rs 0.00]
  • J. K. Paper Ltd. [2009, Rs 1.75, +16%] [2008, Rs 1.50]
  • Joyti Structures Ltd. [2009, Rs 0.90, +12%] [2008, Rs 0.80]
  • Triton Valves Ltd. [2009, Rs 15.00, +20%] [2008, Rs 12.50]
  • ICI India [2009, Rs 16.00, +100%] [2008 Rs 8.00]

Below is the shortlist of companies that continue to keep their dividends flat (i.e. they have neither increased nor decreased compared to last year).

  • Everest Kanto Cylinder Ltd. [2009, Rs 1.20, flat] [2008, Rs 1.20]
  • Voltamp Transformers Ltd. [2009, Rs 12.50, flat] [2008, Rs 12.50]
  • Blue Star Ltd. [2009, Rs 7.00, flat] [2008, Rs 7.00]
  • Ajanta Pharma. [2009, Rs 2.50, flat] [2008, Rs 2.50]
  • Chambal Fertilizer. [2009, Rs 1.80, flat] [2008, Rs 1.80]
  • Zuari Industries. [2009, Rs 3.00, flat] [2008, Rs 3.00]
  • Diamines and Chemicals Ltd. [2009, Rs 1.00, flat] [2008, Rs 1.00]

Below is the list of companies that reduced their dividends. As a long term dividend (or income) investor, I would be concerned of these dividend cutters.

  • MRO Tek Ltd. [2009, Rs 1.00, -66%], [2008, Rs 3.00]
  • Bank of Maharashtra Ltd. [2009, Rs 1.50, -25%] [2008, Rs 2.00]
  • Oriental Hotels Ltd. [2009, Rs 9.00, -14%] [2008, Rs 10.50]
  • MM Forgings Ltd. [2009, Rs 1.50, -70%] [2008, Rs 5.00]
  • Ashok Leyland Ltd. [2009, Rs 1.00, -33%] [2008, Rs 1.50]

I will continue to provide similar updates every week. My end goal is to prepare a list of stocks that consistently grow dividends. We will see how this makes progress.

Facebook User Comments:

5 Responses to “Eight Companies Confident to Raise Dividends for Shareholders”

  1. Shakeel says:

    very informative sir…a lot of work goes in digging through these companies..i really appreciate and thankful for the way you share these lists …
    i have few basic questions regrading dividends:
    –>Do most of companies distribute dividends annually or are there some who do half yearly or so…
    –>How long should one hold stock to get a dividend.To elaborate,say, can someone buy the stock a week before dividend announcement and after the dividend is received one can simply sell the stock if he wants (if its appreciated in value)or continue to hold the stock.This can of course be seen as a short term measure to gain advantage of dividend payouts.How does it work?
    –>On a average ,how much time from announcement does it take for dividend to get credited in investor’s account.

    • TIP Guy says:


      (1) Majority of the Indian companies, i.e. about 90% of them distribute dividends annually. There are few about 8-9% that distribute twice a year. and remaining 1-2% that distribute four times a year.

      (2) Whenever the dividends are announced, it comes with a “record date”. In simple terms, whoever, holds a company stock on this “record date” will get dividends. Even if one sells the stock immediately after this record date. However note (a) typically after the record date, the next day, the stocks seems to open lower by dividend amount. (b) one may also incur capital gain/loss tax

      (3) there is also a dividend “payment date”. it is on this date the dividends are paid. It can varying between 2 weeks to 2 months.

      The strategy you mentioned about buying around record date and selling is known as “dividend rotation”, or “dividend capture” or “dividend harvesting” strategy. This type of trading strategy is very common in US markets. In US dividends are paid four times a year (i.e. every quarter). There are many mutual funds, and ETFs that only focus on this dividend capture strategy.

      On a personal note, I do not track “record date” or “payment date” because I am a long time investor (and not dividend capture trader). (a) Small individual retail investors will never be able to make this strategy profitable (b) it works only if there is higher frequency of dividends, like four times in US. (c) This strategy requires large sum of capital base to make it profitable. And as with any trading strategy it involves high risk.

      hope this helps!

      • Dividend capture is called dividend stripping in Indian Income Tax. Subject to certain conditions, the loss arising out of sale of such shares is disallowed. Effectively, taxation should also be considered for eg Mutual funds, the NAV comes down immediately.

  2. MSK says:

    Hi Tipguy,

    Can you please look into Balmer Lawrie and Company Ltd. when you have the time? Looks like a good dividend-paying company.

    • TIP Guy says:

      Hello MSK,

      Thanks for the suggestion. Will add to my list, but won’t be able to get to it in immediate future. It is indeed a good company which pays dividend, but have never been able to buy at good price.

      Best Wishes,

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