Hello, Stock market is a world where every single investor accumulates high returns and dreams of booking huge profits.
Across, share price appreciation is not a way to earn money from the market.
Yes. Investing in dividend stocks can prove to be an easy way as through dividends you can get a steady and consistent source of income.
So today we will tell you about 3 such companies whose ex-dividend dates are coming near.
The ex-dividend date is like a deadline
To be eligible for the dividend, investors must purchase the company's stock before the ex-dividend date, or else not be eligible for the dividend.
The most important metric to find out about any company's dividend is the dividend yield.
Dividend yield is a ratio that shows how much dividend a company has paid relative to its market value.
To calculate a company's dividend yield, we divide the dividend per share by its current market price.
To calculate the dividend yield, we have considered the prices quoted during the trading session as of June 27, 2022.
We will cover the list in ascending order of dividend yield i.e, the company that has the highest dividend yield we will cover at the end.
So let's start with today's dividend alert.
The first company we will talk about is Maharashtra Scooters Ltd.
Maharashtra Scooters Ltd. is a manufacturing company as well as an unregistered Core Investment Company (CIC).
Reserve Bank's experience a CIC company has to invest at least 90% of its net assets in group companies, where 60% is through equity.
This company is a part of Bajaj Holdings & Investments.
The company is primarily involved in the business of manufacturing Dies, Jigs, Fixtures, and Die Casting Components for the Automobile Industry.
The company is paying an Rs 80 Dividend per share
Its ex-dividend date is 30th June i.e. if you own shares on or before 29th June then you will be eligible for the dividend.
The dividend yield was up to 2.35%
The company's net investment as of 2021 was ₹17189 crore.
These include companies such as Bajaj Auto, Bajaj Finance, Bajaj Finserv, and Bajaj Holdings & Investments.
Its market cap is 4,263 crores, which is relatively low compared to their invested companies and even their total investment size.
The company's investment firms Bajaj Auto and Bajaj Finserv have consistently given a good performance.
So, as long as the underlying companies give a good performance, Maharashtra Scooters is expected to perform along the same lines.
A major concern for the company is the source of revenue.
In FY21, 93% of the company's revenue was generated from investments and 7% from the manufacturing side.
The company has to rely heavily on dividends from its holding company.
If in a particular year the dividend works are declared or not due to a problem in the profit of the holding company,
then its direct impact can be seen on the profitability and margins of the company.
As you can see on your screen, we have shown some key financial and technical indicators of the issuing company.
We have also included the prices of 2 technical indicators so that you can see the stocks from a technical perspective as well.
We have used 2 indicators- 200 days simple moving average i.e. 200 days SMA and RSI (14).
If a company's stock price is trading above the 200 DMA, the stock can be considered bullish.
And if the price is trading down the 200 DMA then the stock can be said to be bearish.
As for the RSI, an RSI value above 30 is generally considered oversold, and a trend reversal is likely to lead to an uptrend.
Similarly, an RSI value above 70 is considered overbought, and a trend reversal is likely.
The other company is Nippon Life India Asset Management Limited
Nippon Life India Asset Management is one of the leading Mutual Fund houses in India.
Their promoter group is Mani Jati, one of the largest private insurance companies in Japan, Nippon Life Insurance Company.
It provides services like Mutual Fund Management, Portfolio Management Services, Alternative Investment Funds, Pension Funds, and Offshore Fund Management.
The bank declared a Rs 7.50 dividend per share
Its ex-dividend date is 30th June i.e. if you own shares on or before 29th June then you will be eligible for a dividend.
The dividend yield of the dividend is made up to 2.62%.
The biggest strength of the company is its strong investor base.
The Company manages average assets under management of around ₹1.7 Crore Mutual Fund Folio around ₹ 2.83 Lakh Crore.
The last quarter of FY22 was the company's fourth consecutive quarter as they grew their market share sequentially.
With a 14% market share and the highest number of ETF products, the company enjoys a leadership position in the ETF domain in India.
The biggest challenge in front of the company is the increasing competition,
where the company can increase the commission of mutual fund agents and distributors to increase the AUM.
Its direct impact can come on the revenue of the company.
Rising inflation is also putting pressure on the savings of retailers and the earnings of corporates.
The impact of high competition is seen in its numbers for Q4 FY22 where revenues grew by 12% YoY but declined by 0.15% in QoQ.
As you can see on your screen, we have shown some key financial and technical indicators of the company.
The third company is Bajaj Auto Limited
Bajaj Auto is a flagship company of the Bajaj Group, which manufactures two-wheelers and three-wheelers.
Bajaj Auto also exports its products to 79 countries.
It is one of the world's fourth-largest motorcycle manufacturing companies as well as the world's largest three-wheeler manufacturer.
The company declared Rs 140 a dividend per share is declared
Its ex-dividend date is 30th June i.e. if you own shares on or before 29th June then you will be eligible for a dividend.
The dividend yield is up to 3.56%.
Its biggest strength is its healthy market share and strong product development capabilities in the motorcycle and 3-wheeler segments.
It has delivered a strong performance in the last quarter, driven by a strong market foothold, adequate product mix, and strong exports.
Also, the company has recently acquired a 48% stake in the KTM brand.
KTM brand sports and super sports two-wheelers are manufactured.
The announcement of Bajaj Auto's entry into the electric vehicle space also points to its strong product mix and healthy growth prospects.
Hence the company has shown a significant jump in its sales growth in FY22.
The two-wheeler market in India is very competitive.
The strong rivals of Honda Motorcycle & Scooters are Hero MotoCorp and TVS Motors.
While the company has been able to maintain a healthy market share due to its strong product development and diversified product portfolio,
it may be difficult for the company to keep its operating margins stable.
Regulations and macro trends also show considerable impact in this industry.
As you can see on your screen, we have shown some key financial and technical indicators of the issuing company.
So these were the 3 companies whose ex-dividend date is nearing, and whose dividend yield is more than 1%.
We remind you that these videos are for educational purposes only, and do not recommend any kind of buy/sell.
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