Top Stocks Declaring Big Dividends in May 2023

Long-term investing can seem like a challenging endeavour. After all, the world changes quickly.

Over the past three years alone, the world has been hit by one of the worst pandemics in modern history, an unprecedented supply chain and inflation crisis, and the Russia-Ukraine war.

Then, 2023 kicked off with the Adani stocks selloff and a banking crisis in the US triggered by the failure of Silicon Valley Bank (SVB).

So, what's an investor to do?

Well, they could start by focusing on companies with long track records of stable profits and cash flows with a history of regular dividend payouts.

Dividend payments can be a reliable source of income even during temporary downturns in the unpredictable stock market.

If you are considering investing in dividend stocks to beat the market volatility, here are six stocks to watch out for in May 2023.

#1 Castrol India

First on the list is Castrol India.

For the calendar year 2023, Castrol India recently declared a final dividend of Rs 3.5 per share, in addition to the interim dividend of Rs 3 declared in August 2022. This was on the back of a flat growth in net profit at Rs 1.9 billion (bn) in the December 2022 quarter.

The record date for the same is fixed as 4 May 2023.

The total dividend declared for the year stands at Rs 6.5 per share, including the final dividend. At the current price, the total dividend of Rs 6.5 per share for the calendar year 2023 results in a dividend yield of over 6%!

Castrol India has remained a consistent dividend payer. Since 2000, the company has declared 46 dividends.

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.

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

Castrol India Dividend History (2018-2022)

	Dec-18	Dec-19	Dec-20	Dec-21	Dec-22
Dividend per share (Adj.) * (Rs)	5.0	5.5	5.5	5.5	6.0
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

#2 Stovec Industries

Second on the list is Stovec Industries.

The company's board has declared a final dividend of Rs 47 per share for the financial year 2023.

The record date for the same is 3 May 2023.

The company has maintained a good record of paying dividends for the last five years.

The five-year average dividend payout ratio stands at 42.3%. The dividend yield over the past five years has averaged 1.9%.

Stovec Industries engages in the development and production of consumables for the textile, graphic printing, and sugar industry.

It produces rotary printing machines for textiles, rotary screens, chemicals for textile printing, anilox and screens for graphic printing, digital ink and sugar screens.

For more details, check out the Stovec Industries company fact sheet and quarterly results.

Stovec Industries' Dividend History (2018-2022)

	Dec-18	Dec-19	Dec-20	Dec-21	Dec-22
Dividend per share (Adj.) * (Rs)	55.0	40.0	60.0	22.0	57.0
Dividend payout ratio (%)	34.2	33.4	86.9	16.2	41.0
Dividend Yield (%)	1.5	1.9	3.0	0.9	2.5

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#3 Elantas Beck India

Third on the list is Elantas Beck India.

For the financial year 2023, the company's board has declared a final dividend of Rs 5 per share. The record date for the same is set as 3 May 2023.

The company has a good dividend track record and has consistently declared dividends for the last six years.

The five-year average dividend payout ratio stands at 5.9%. The dividend yield over the past five years has averaged 0.1%.

Elantas Beck India is part of an international company Altana that specialises in chemicals. The Indian arm of Elantas Beck manufactures a wide range of speciality chemicals in the electrical insulation and construction industries.

For more details, check out the Elantas Beck company fact sheet and its latest quarterly results.

Elantas Beck India Dividend History (2018-2022)

	Dec-18	Dec-19	Dec-20	Dec-21	Dec-22
Dividend per share (Adj.) * (Rs)	4.5	5.0	5.0	5.0	5.0
Dividend payout ratio (%)	5.4	8.0	6.4	5.9	4.1
Dividend Yield (%)	0.2	0.2	0.2	0.1	0.1

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#4 CRISIL

Fourth on the list is CRISIL.

For the financial year 2023, the company has declared an interim dividend of Rs 7 per share in addition to the previous three interim dividends and a final dividend.

In the past 12 months, CRISIL has declared dividend amounting to Rs 55 per share.

Since 2001, the company has declared 72 dividends. The five-year average dividend payout ratio stands at 65.7%, with a dividend yield of 1.7%.

CRSIL is one of the leading rating agencies in India. It also provides research and risk advisory services.

The company's rating services span an entire range of debt instruments for over 8,000 companies. It has a global presence and draws most of its revenue from North America, India, and Europe.

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

CRISIL Dividend History (2018-2022)

	Dec-18	Dec-19	Dec-20	Dec-21	Dec-22
Dividend per share (Adj.) * (Rs)	29.6	31.7	32.8	45.9	47.9
Dividend payout ratio (%)	59.6	67.3	67.5	72.0	62.1
Dividend Yield (%)	1.9	1.7	1.7	1.6	1.6

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#5 Ramkrishna Forgings

Next on the list is Ramkrishna Forgings.

Ramkrishna Forgings, for the financial year 2023, has declared an interim dividend of Rs 0.5 per share.

This was in addition to three interim dividends of Rs 0.5 per share each, declared earlier, driving the total dividend amount to Rs 2 per share.

Ramkrishna Forgings Ltd. has declared 20 dividends since September 2005.

The five-year average dividend payout ratio stands at 1.8%. The dividend yield over the past five years has averaged 0.1%.

The company supplies industrial equipment for railway coaches and wagons. In India, it is a trusted brand to OEMs, including Tata Motors, Ashok Leyland and Daimler.

In international markets, it is a leading producer of Volvo, Mack Trucks, Iveco, and Ford.

For more details, check out the Ramkrishna Forging company fact sheet and quarterly results.

Ramkrishna Forging Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	0.04	0.1	0.0	0.0	0.5
Dividend payout ratio (%)	0.7	0.8	0.0	0.0	4.0
Dividend Yield (%)	0.1	0.3	0.0	0.0	0.3

*Adjusted for bonus issues and stock splits
Source: Equitymaster

#6 HDFC Bank

Last on the list is HDFC Bank.

The board of HDFC Bank has approved a final dividend of Rs 19 per share for the financial year 2023. This is the highest dividend the lender has paid since listing, according to the data available on the exchanges.

The bank has set the record date as 16 May 2023 to determine those shareholders eligible to receive the dividend.

With a long history of paying consistent dividends, HDFC Bank has declared 24 dividends since April 2001.

The five-year average dividend payout ratio stands at 11.4%. The dividend yield over the past five years has averaged 0.6%.

HDFC Bank is India's largest bank by market cap and the largest private sector bank by assets.

It is one of the most valuable brands in India, with a brand value of US$ 20.2 bn. Also, it's among the few companies listed on international stock exchanges.

For more details, check out the HDFC BANK company fact sheet and its latest quarterly results.

HDFC Bank Dividend History (2018-2022)

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Dividend per share (Adj.) * (Rs)	3.0	3.7	2.5	6.4	15.4
Dividend payout ratio (%)	9.1	9.1	5.0	11.3	22.6
Dividend Yield (%)	0.7	0.6	0.3	0.4	0.1

*Adjusted for bonus issues and stock splits
Source: Equitymaster

In conclusion

Rising interest rates and hot inflation have turned the market upside down in the past one year, with investors ditching highflying companies for overlooked stocks like dividend-payers that offer stability.

Companies paying out a slice of their earnings to shareholders typically have a record of strong profits.

This is why dividend-paying stocks have been shown to have higher returns than non-dividend-paying stocks over the long run.

If you are investing in dividend stocks, you should investigate the company's history of dividend payments and their intrinsic value before taking a leap.

Now use Equitymaster's stock screener to dig deeper into the high dividend yield stocks and the best dividend stocks in India.

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...