5 Stocks to Watch Out for Upcoming Dividends in March 2024

Trading and investing, particularly with a long-term perspective, presents considerable challenges for many retail investors as it is loaded with unique hurdles along the way.

Despite these obstacles, Indian retail investors have navigated the terrain, with confidence since the market downturn in 2020.

The market's journey to new all-time highs has been a significant morale booster.

Some people see the benchmark indices reaching new heights and worry they're missing out, while others worry there's a crash around the corner.

Whichever camp you're in, buying more dividend-paying stocks is probably the surest way to build a portfolio that can outperform over time.

Dividend-payers as a class tend to outperform non-payers because these companies are already profitable regularly.

Plus, a commitment to distribute a portion of profits forces managers to think further ahead and exercise more care when directing limited cash flows.

If you seek dividends, here are the top 5 stocks to watch for upcoming March 2024 payouts.

#1 Sanofi India

First on the list is Sanofi India.

Pharmaceutical company Sanofi India's board, on 23 February, declared an interim dividend of Rs 50 per equity share of the face value of Rs 10 each.

The board of the drug maker fixed 7 March as the record date for the interim dividend.

The company's board also recommended a final dividend of Rs 117 per equity share of the face value of Rs 10 each for the year ended December 2023. The pharma firm follows a January-December financial year.

It announced 3 May as the record date for the final dividend.

Sanofi India has declared 49 dividends since December 2001.

The five-year average dividend payout ratio stands at 150.4%. The dividend yield over the past five years has averaged 19.6%.

Sanofi India Ltd (Sanofi India), a subsidiary of Sanofi, is a healthcare company. It focuses on a range of therapeutic areas, including diabetes, cardiology, consumer healthcare, hospital, central nervous system, and anti-histamines.

The company's product portfolio includes insulin, tablets, vaccines and injections.

Sanofi India's Dividend History (2018-22)

	Dec-18	Dec-19	Dec-20	Dec-21	Dec-23
Dividend per share (Adj.) * (Rs)	84	348.9	364.9	489.9	569.9
Dividend payout ratio (%)	50.8	194.1	176	119.5	211.5
Dividend Yield (%)	1.5	5.6	4.9	5.9	8.5

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the Sanofi India company fact sheet and quarterly results.

#2 Marico

Second on the list is Marico.

Leading FMCG major Marico's board, on 27 February 2024, declared a second interim dividend of Rs 6.5 per equity share of Re 1 each for the financial year 2023-24. Marico has fixed 6 March 2024 as the record date for the interim dividend to determine eligible shareholders.

Since 1997, Marico has paid 61 dividends in total.

The five-year average dividend payout ratio stands at 71.6%. The dividend yield over the past five years has averaged 1.7%.

Marico is one of the top five FMCG companies in India by growth. The company deals in haircare, skincare, edible oils, male grooming, and healthy foods.

Some of its brands include Parachute, Saffola, Livon, Nihar, and Beardo. The company also has market leadership in most of its product categories.

Marico's Dividend History (2019-23)

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	4.7	6.7	7.5	9.2	4.5
Dividend payout ratio (%)	54.2	83.6	80.8	95.3	44
Dividend Yield (%)	1.4	2.5	1.8	1.8	0.9

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the Marico company fact sheet and quarterly results.

#3 DCM Shriram

Third on the list is DCM Shriram.

The company's board of directors, on 21 February 2024, declared an interim dividend of 200%, i.e., Rs 4 per share for the financial year 2023-24.

The company has fixed 6 March 2024 as the record date for payment of this interim dividend.

DCM Shriram has declared 50 dividends since December 2000.

The five-year average dividend payout ratio stands at 20.4%. The dividend yield over the past five years has averaged 2.3%.

DCM Shriram Ltd. is a leading business conglomerate with a group turnover of Rs 77.7 bn.

DCM Shriram Industries Limited is a diversified group with operations in sugar, alcohol, co-generation of power, and inorganic chemicals, among others.

DCM Shriram's Dividend History (2019-23)

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	9.8	8.2	9.3	14.7	14
Dividend payout ratio (%)	16.9	17.8	21.6	21.5	24
Dividend Yield (%)	2.4	3.8	1.9	1.3	1.9

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the DCM Shriram company fact sheet and quarterly results.

#4 Castrol India

Fourth on the list is Castrol India.

The company's board of directors, on 1 February 2024, declared an interim dividend of 90%, i.e., Rs 4.5 per share for the financial year 2023-24.

The company has fixed 21 March 2024 as the record date for payment of this interim dividend.

For the year ending December 2023, Castrol India has declared an equity dividend of 150%, amounting to Rs 7.5 per share.

Castrol India has declared 49 dividends since December 2000.

The five-year average dividend payout ratio stands at 74.7%. The dividend yield over the past five years has averaged 4.3%.

The company is one of the key lubricant manufacturers in India. It's principally engaged in the business of manufacturing & marketing of automotive and industrial lubricants and related services.

The company is a purchaser of base oil which forms the largest portion of its operating expenses. The price of base oil generally fluctuates in line with crude oil.

Castrol India Dividend History

	Dec-18	Dec-19	Dec-20	Dec-21	Dec-22
Dividend per share (Adj.) * (Rs)	5	5.5	5.5	5.5	6
Dividend payout ratio (%)	69.8	65.8	93.3	71.8	72.8
Dividend Yield (%)	3.3	4.3	4.5	4.5	5.1

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, check out the Castrol India company fact sheet and quarterly results.

#5 Ksolves India

Last on the list is Ksolves India.

The company will meet on 13 March 2024 to discuss various matters, including potential dividends.

The record date for the same is set as 21 March 2024.

Earlier this year, the board of directors of Ksolves India on 25 January 2024 paid second interim dividend of Rs 7.5 per share.

Apart from this, on15 October considered and declared 1st interim dividend of Rs 7 per share.

Since 2021, Ksolves India has paid 9 dividends in total.

The five-year average dividend payout ratio stands at 45.9%. The dividend yield over the past five years has averaged 2.2%.

With a presence in over 12 countries, Ksolves India provides services to all kinds of businesses, from start-ups to small-sized and mid-sized companies.

Ksolves India is an expert in Apache Spark, Apache Cassandra, Apache NiFi, Salesforce, Machine Learning, Artificial Intelligence, OpenShift, Microservices, Penetration Testing, DevOps, etc.

Ksolves India Dividend History (2019-23)

	Mar-20	Mar-21	Mar-22	Mar-23
Dividend per share (Adj.) * (Rs)	0	5	5.8	15.5
Dividend payout ratio (%)	0	66.3	42.9	74.3
Dividend Yield (%)	0	5.7	1.6	3.5

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more, check out Ksolves India company fact sheet and quarterly results.

To Conclude

Dividend paying stocks usually pay a dividend at a growing rate. This increases the amount of passive income every year.

Dividends also act as a defensive strategy during market downturns, as they exhibit more stability compared to non-dividend-paying stocks.

It's important to note that while dividend stocks can provide a level of defensiveness, they are not immune to market fluctuations.

They can still experience declines in value during severe market downturns or company-specific challenges.

Thus, it's essential to conduct thorough research, assess the financial health of the company, and diversify your investment.

If you want to dig deeper, use Equitymaster's stock screener to check high dividend yield stocks and the best dividend stocks to buy.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...