3 Stocks That Pay Big Final Dividends Add Them to Your Watchlist

Let’s take a closer look at five companies today and why they are different from each other dividend paying stocks,

These companies not only have a track record of consistent dividend payouts but also follow a shareholder-friendly policy.

The essence of a shareholder-friendly policy is to reward investors for their investment by sharing a portion of the company’s profits in the form of dividends.

let’s take a look…

#1 VST Industries

First on this list is VST Industries.

VST Industries was incorporated in 1930 under the name of Vazir Sultan Tobacco Company.

The principal activities of the company are the manufacture and sale of cigarettes and unmanufactured tobacco.

dividend of 70-80 between the years 2014-2018. Over the next four years (2018-2022), this average payment is expected to increase to 95–140.

What’s next in 2023?

For the year ending March 2022, the company declared dividend 140 per share, which was also the highest dividend declared by VST in its history.

You shouldn’t be surprised if VST announces an even bigger payout this year.

In the dividend distribution policy (last updated in 2020), VST stated that its payout ratio was around 70% of net profit. It can either increase or decrease depending on some factors but so far so good…

VST has been paying out 66% of its profits as an average dividend over the last 5 years.

The sign of a strong business is reflected in its numbers.

This judicious use of money is also reflected in its high return ratio (5-year average ROE of 35% and 5-year average ROCE of 47%).

However, the stock of VST Industries has largely underperformed in the last one year. They have shown some bullishness in the recent sessions post the Budget 2023 announcements.

#2 Sanofi India

Next on the list is Sanofi India.

Sanofi India (Sanofi) is the Indian subsidiary of France-based pharma multinational Sanofi SA.

Sanofi SA is the world’s ninth largest pharmaceutical company by revenue. With over 100,000 employees, the company provides healthcare solutions in over 170 countries.

The major therapeutic areas the company manufacturers are Medicines for Diabetes, Cardiology, Anti-infective, Allergy, Epilepsy and Supplements.

It has a diverse product portfolio with leading brands such as Allegra, Combiflam, and Lantus.

Here’s how Sanofi’s dividend per share has fared over the years.

Sanofi’s There has been a steady increase in dividend payouts over the past few years.

Sanofi announces further special dividend for the year ending December 2022 193 per share in August 2022.

In fact, over the last five years, Sanofi India has consistently paid dividends at an average yield of over 4%, making it one of the most attractive dividend stocks in the market.

And because of the sale, Sanofi is available at a cheaper price. You can invest with a large margin of safety so that when things turn, you have the opportunity to earn higher returns.

Sanofi is currently trading near its 52-week low.

#3 Oracle Financial Services

Last on this list is Oracle Financial Services.

When we think of IT stocks, the companies that come to mind are TCS, Infosys or maybe Wipro or even HCL Technologies.

After all, these big 4 IT companies have consistently emerged as wealth creators for millions of investors over the past few decades.

But when it comes to dividend payments and high returns, Oracle Financial Services Software (OFSS) stands head and shoulders above any other company.

In recent years, OFSS has made significant investments in rapidly moving its solutions to the cloud and has launched solutions for liquidity management, virtual account management, and supply chain finance in the form of cloud services, which are well ahead of their peers. Is leading.

The company’s net margin has steadily improved from 26% in FY18 to 46.5% in FY22. By March 31, 2022, the company has become almost debt free.

Here’s how the company’s per share dividend payout has fared over the years.

For the last three years, the company has been declaring the final dividend in the month of May. Investors can expect higher payouts this year as well.

Here’s an interesting data point about OFSS… At 16.1, OFSS has a significantly lower price to dividend ratio than its peers.

The cost to dividend ratio accounts for cash flows and is a more reliable ratio when it comes to comparing dividends because cash is actually being paid out.

This means that the company is actually making money.

Effectively, this ratio indicates the number of years it will take for the dividend to recover the original share price.

OFSS shares have underperformed in the last one year, falling 10%. It has one of the lowest price to book value ratios within the peer group.

in conclusion

By identifying companies with a history of paying out large final dividends, you can potentially enjoy a steady stream of income.

High dividend stocks can provide this steady income stream because dividend paying companies are often established and financially stable. You can choose companies with a track record of paying dividends to shareholders even during tough economic conditions.

Now list dividend paying stocks in seconds using Equitymaster’s powerfulindian stock screener,

happy investing.

Disclaimer: This article is for information purposes only. This is not a stock recommendation and should not be treated as such.

This article is syndicated equitymaster.com