10 Stocks Paying Big Dividends in August 2023

An investor's biggest wish is to save himself from the unpredictability of the stock markets. It's one of the most painful things to watch your portfolio suffer sharp decline in value.

But the truth is, no one can really avoid unpredictability. Unpredictable, is the second name of Mr market.

Investors cannot entirely save themselves from the volatility but they can hedge against it or be better prepared for it. To be prepared, investors can look out for fundamentally strong stocks that pay regular dividends.

Dividend paying stocks help to shield investors from market volatility.

In this article, let's take a look at 10 such stocks that are paying big dividends in August 2023.

#1 United Breweries

Leading the list is United Breweries.

United Breweries is the flagship company of the UB group. The company is engaged in manufacturing and marketing of beer. The company owns leading beer brand Kingfisher.

Kingfisher Premium Lager, the company's most well-known beer, is presently sold in 69 countries and dominates the international market for Indian beers.

For the financial year 2023, the board of United Breweries' declared a final dividend of Rs 7.5 per share or 750% on its face value. The record date for the same is set for 3 August 2023.

Since 2005, the company has declared 20 dividends. The five-year average dividend payout ratio stands at 25.6%, with an average dividend yield of 0.5%.

For more details, see United Breweries company fact sheet and quarterly results.

United Breweries Dividend History (2018-22)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	2.0	2.5	2.5	0.5	10.5
Dividend payout ratio (%)	13.4	11.7	15.4	11.6	75.8
Dividend Yield (%)	0.2	0.2	0.3	0.0	0.7

Data Source: Equitymaster

#2 Industrial and Prudential Investment Company

Second on the list is Industrial and Prudential Investment.

Industrial & Prudential Investment Company is a publicly owned investment management firm. It's a zero debt company.

For the financial year 2023, the board of Industrial & Prudential Investment Company declared a final dividend of Rs 50 per share or 500%. The record date for the same is 18 August 2023.

Since 2022, the company has declared 21 dividends. The five-year average dividend payout ratio stands at 20.3%, with an average dividend yield of 2.8%.

For more details, see Industrial and Prudential Investment Company Industries company fact sheet and quarterly results.

Industrial and Prudential Investment Company Dividend History (2018-22)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	26.0	26.0	26.0	25.0	50.0
Dividend payout ratio (%)	21.9	23.1	17.8	15.9	22.7
Dividend Yield (%)	2.1	2.5	3.6	2.2	3.4

Data Source: Equitymaster

#3 PI Industries

Third on the list is PI Industries.

PI Industries is engaged in the business of agri inputs, fine chemicals, contract research and manufacturing services, polymers, and engineering services.

For the financial year 2023, the board of PI Industries declared a final dividend of Rs 5.5 per share or 550%. The record date for the same is 11 August 2023.

Prior to this the company has declared an interim dividend of Rs 4.5 per share or 450%. Thus, it paid total dividend of Rs 10 in FY23. Since 1998, the company has declared 33 dividends.

The five-year average dividend payout ratio stands at 12.3%, with an average dividend yield of 0.3%.

For more details, see PI Industries company fact sheet and quarterly results.

PI Industries Dividend History (2018-22)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	3.6	3.6	3.6	5.0	6.0
Dividend payout ratio (%)	15.0	13.5	12.1	10.3	10.8
Dividend Yield (%)	0.5	0.4	0.3	0.2	0.2

Data Source: Equitymaster

#4 Alkem Laboratories

Fourth on the list is Alkem Laboratories.

Alkem Laboratories is an Indian multinational pharmaceutical company headquartered in Mumbai. It manufactures and sells pharmaceutical generics, formulations and nutraceuticals in India and abroad.

For the financial year 2023, the board of Alkem Laboratories declared a final dividend of Rs 10 per share or 500%. The record date for the same is 10 August 2023.

In FY23 the company declared an interim dividend of Rs 7.5 per share or 750%. It had also declared a special dividend of Rs 25 or 1,250% in the same year. Thus, it paid total dividend of Rs 42.5 in FY23. Since 2016, the company has declared 16 dividends.

The five-year average dividend payout ratio stands at 24.3%, with an average dividend yield of 0.7%.

For more details, see Alkem Laboratories company fact sheet and quarterly results.

Alkem Laboratories Dividend History (2018-22)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	13.0	16.0	25.0	30.0	34.0
Dividend payout ratio (%)	24.3	24.7	26.0	22.2	24.2
Dividend Yield (%)	0.7	0.9	1.1	1.1	0.9

Data Source: Equitymaster

#5 West Coast Paper Mills

Fifth on the list is West Coast Paper Mills.

The company is one of the oldest and the largest producers of paper for printing, writing, and packaging in India.

For the financial year 2023, the board of West Coast Paper Mills declared a final dividend of Rs 10 per share or 500% on the face value. The record date for the same is 10 August 2023.

Since 2000, the company has declared 20 dividends.

For more details, see West Coast Paper Mills company fact sheet and quarterly results.

West Coast Paper Mills Dividend History (2018-22)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	4.0	5.0	5.0	1.0	6.0
Dividend payout ratio (%)	11.8	11.2	8.1	-150.7	11.5
Dividend Yield (%)	1.7	1.9	3.9	0.4	1.8

Data Source: Equitymaster

#6 J B Chemicals & Pharmaceuticals

Sixth on the list is J B Chemicals & Pharmaceuticals.

J B Chemicals & Pharmaceuticals is engaged in manufacturing of pharmaceutical specialties in various dosage forms, herbal remedies, diagnostics, generic drugs, active pharmaceutical ingredients (APIs).

For the financial year 2023, the board of JB Chemicals & Pharmaceuticals declared a final dividend of Rs 9.25 per share or 462.5%. The record date for the same is 17 August 2023.

Since 2001, the company has declared 32 dividends. The five-year average dividend payout ratio stands at 25.1%, with an average dividend yield of 0.8%.

For more details, see J B Chemicals & Pharmaceuticals company fact sheet and quarterly results.

J B Chemicals & Pharmaceuticals Dividend History (2018-22)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	2.2	5.2	11.0	16.5	16.5
Dividend payout ratio (%)	12.0	20.7	31.2	28.4	33.0
Dividend Yield (%)	0.6	1.4	2.2	1.3	1.0

Source: Equitymaster

#7 Neelamalai Agro Industries

Seventh on the list is Neelamalai Agro Industries.

Initially, Neelamalai Agro Industries was engaged in managing their own tea plantations and producing, manufacturing and marketing tea.

From the original tea plantation, the company has made steady progress over the years moving on into rubber, coffee, vanilla, pepper and cardamom.

For the financial year 2023, the board of Neelamalai Agro Industries declared a final dividend of Rs 30 per share or 300%. The record date for the same is 18 August 2023.

Since 2001, the company has declared 26 dividends.

For more details, see Neelamalai Agro Industries company fact sheet and quarterly results.

Neelamalai Agro Industries Dividend History (2018-22)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	20.2	30.3	20.2	30.0	30.0
Dividend payout ratio (%)	-465.2	85.2	-81.6	170.1	-144.1
Dividend Yield (%)	1.4	2.2	2.3	1.9	0.8

Data Source: Equitymaster

#8 Grindwell Norton

Eighth on the list is Grindwell Norton.

Grindwell Norton manufactures abrasive products, including bonded and coated abrasives. The company also manufactures silicon carbide and aluminium oxide, as well as industrial ceramics.

Grindwell Norton also operates through a joint venture which manufactures a wide range of centralised lubrication systems.

For the financial year 2023, the board of Grindwell Norton declared a final dividend of Rs 14.5 per share or 290% on the face value. The record date for the same is 5 August 2023.

Since 2002, the company has declared 23 dividends. The five-year average dividend payout ratio stands at 42.1%, with an average dividend yield of 1.2%.

For more details, see Grindwell Norton company fact sheet and quarterly results.

Grindwell Norton Dividend History (2018-22)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	5.0	6.0	7.5	9.5	12.0
Dividend payout ratio (%)	36.7	39.4	45.2	44.2	44.9
Dividend Yield (%)	1.0	1.0	1.6	1.0	0.7

Data Source: Equitymaster

#9 Lumax Industries

Ninth on the list is Lumax Industries.

Lumax is a leading manufacturer and supplier of automotive components and systems in India. The brand name Lumax is synonymous with lighting in the Indian automotive industry.

For the financial year 2023, the board of Lumax Industries declared a final dividend of Rs 27 per share or 270%. The record date for the same is 4 August 2023.

Since 2000, the company has declared 25 dividends. The five-year average dividend payout ratio stands at 37%, with an average dividend yield of 1.3%.

For more details, see Lumax Industries company fact sheet and quarterly results.

Lumax Industries Dividend History (2018-22)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	23.0	35.0	23.5	7.0	13.5
Dividend payout ratio (%)	37.1	34.6	36.7	39.4	37.1
Dividend Yield (%)	1.1	1.9	2.7	0.4	1.5

Data Source: Equitymaster

#10 Cheviot Company

Last on the list is Cheviot Company.

Cheviot Company is the flagship of Group Cheviot. It owns jute mills in West Bengal. The company manufactures jute products and jute fabrics to cater to both international and domestic market.

For the financial year 2023, the board of Cheviot Company declared a final dividend of Rs 27 per share or 270%. The record date for the same is 4 August 2023.

Since 2000, the company has declared 19 dividends. The five-year average dividend payout ratio stands at 51.4%, with an average dividend yield of 2.3%.

For more details, see Cheviot Company fact sheet and quarterly results.

Cheviot Company Dividend History (2018-22)

Year	2018	2019	2020	2021	2022
Dividend per share (Rs)	0.7	1.1	51.6	182.3	60.0
Dividend payout ratio (%)	0.8	1.3	64.5	144.8	45.5
Dividend Yield (%)	0.1	0.2	9.5	23.9	5.3

Data Source: Equitymaster

Investment Takeaway

Dividend stocks are lucrative but investors should not blindly buy a stock just because it pays good dividend. A company that pays good dividends may have weak fundamentals too. But in very rare cases.

Also, dividend stocks offer resilience, but dividend payout also means fewer funds for the company for its business. If the company doesn't use the money to pay dividends, the same amount could be utilised in working capital or for its capex.

Hence, an investor should carefully analyse all the facts.

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