Hello, Dividend is a way for any company to share its profits with the shareholders.
And a reliable source of income for the investors.
So today we will tell you about 4 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 cannot qualify for the dividend.
The most crucial metric to find out about any company's dividend is the dividend yield.
The 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 according to the trading session of July 04, 2022.
We will cover the list in ascending order of dividend yield, that is, the company with the highest dividend yield, we will cover at the end.
So let's start with today's dividend alert.
The first company that we will talk about is Zensar Technologies Limited.
Zensar Technologies Ltd. is the leading digital solutions and technology services company in India.
The company is part of the Mumbai-based RPG Group and is headquartered in Pune.
Zensar Tech has declared Rs 3.50 Dividend per share and its ex-dividend date is 14th July i.e. if you buy its shares on or before 13th July.
You will be eligible for the dividend.
The dividend yield of the dividend is made up to 1.28%.
The company's biggest strength is its diversified portfolio across all verticals.
At the same time, Zensar is also part of the ₹263 billion (FY21 revenue) worth RPG Group which gives them financial flexibility and several other benefits.
The company posted strong revenue numbers in Quarter 4.
With this result, Zensar has consistently delivered good revenue growth in the financial year 2021-22 in all four quarters.
As you can see, 70.5% of its revenue comes from US markets exposing its revenue and earnings growth from structural and sector-specific challenges there.
This could prove to be a geographic concentration risk for them.
Company margins are linked to wage inflation, foreign exchange risk, and high competition.
As you can see, the company's margins came down compared to Quarter 3 due to higher distribution costs and higher operating expenses.
As you can see on your screen, we have shown some key financial and technical indicators of the 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 below the 200 DMA then the stock can be said to be bearish.
In terms of RSI, RSI values ​​below 30 are generally considered oversold, and thus a trend reversal i.e. a downtrend can lead to an uptrend.
Similarly, an RSI value above 70 is considered overbought, and a trend reversal is likely.
The second company is Bosch Limited.
Bosch Limited is a global leader in technology and services.
The company has built a strong presence in areas such as automotive technology, industrial technology, consumer goods, energy, and construction technology.
The company is involved in the manufacturing and sales of diesel and gasoline fuel injection systems, home appliances, automotive aftermarket products,
industrial equipment, electrical power equipment, security systems, and industrial and consumer energy products.
The company has declared a dividend of Rs. 110 per share and a special dividend of Rs. 100/share, i.e a total of ₹210/share.
The ex-dividend date of these dividends is 14th July i.e. if you buy the shares on or before 13th July then you will be eligible for the dividend.
The dividend yield is up to 1.33%.
Bosch Limited is one of the leading firms in the industry with its biggest strengths being its R&D department and strong product portfolio.
If we talk about their automotive competency, then the company has performed better than the market in the segment of tractors and passenger vehicles.
The company has also improved its margins in Q4 due to an increase in prices and an improvement in operational efficiencies.
But their sales have declined by 20% in the 2-wheeler segment Year on Year.
Rising commodity prices and continued semiconductor shortages are also a risk for the company.
Also, if you look at their Working Capital Days and Inventory Days, we come to know that the Company is finding it difficult to convert its Inventory into Sales.
But as demand recovers and constraints like inflation or semiconductor supply constraints are relieved, these numbers may see further improvement.
As you can see on your screen, we have shown some key financial and technical indicators of the company.
The third company is Piramal Enterprises Limited.
Piramal Enterprises Limited is one of the largest diversified companies in India.
The business of the company is divided into 2 verticals. Financial services and pharmaceutical business.
It has declared Rs 33 Dividend per share and its ex-dividend date is 14 July i.e. if you bought its shares on or before 13 July, you will be eligible for the dividend.
The dividend yield is up to 1.96%.
One of the strengths of the company is the experienced management team of the company which has a good track record of scaling up the business.
The strong focus of Piramal Enterprises' management is risk management, control systems, and compliance processes.
This has been instrumental in maintaining the healthy financials of the company.
Apart from this, the company's pharma segment has also seen very good growth.
The company launched 40 new products in FY22, contributing 15% to the company's sales.
Also, the company's diversified portfolio in the pharma sector has enabled the company to manage its strategic risk well.
The company's last quarter results were not that impressive.
As you can see, the company's profit margin has seen a sharp decline in the last quarter.
In its lending business, it has incurred a significantly higher credit cost as compared to the previous quarter, which was negligible in the previous quarter.
Credit cost means the cost of any type of borrowing, for example, interest, commission, processing fee, admin fee, etc.
As you can see on your screen, we have shown some key financial and technical indicators of the company.
The fourth company is VST Industries Limited.
VST Industries Limited is a Hyderabad-based company.
The company is involved in the business of manufacturing and trading cigarettes, tobacco, and tobacco products.
The company is a subsidiary of British American Tobacco plc, which holds a 32.2% stake in the company.
VST Industries is the third-largest player in the Indian cigarette market in terms of volume.
The company has declared Rs 140 Dividend per share and its ex-dividend date is 13th July i.e. if you bought its shares on or before 12th July.
You will be eligible for the dividend. The dividend yield is up to 4.58%.
VST has a healthy financial risk profile and has been virtually debt-free since 2003.
The company's revenue grows by 6% on a year-on-year basis in the last 10 years, which shows the company's consistent business growth.
Along with this, the company's operating profit margin has also been above 30%.
The main risk for the company is regulatory issues in their cigarette division.
On the one hand, rising tax rates on the government's ongoing industry and strict restrictions on the promotion, consumption, and packaging of cigarettes can hinder the company's growth.
With this, you see, India's cigarette industry is witnessing a gradual decline, due to which the company's growth prospects may be less.
As you can see on your screen, we have shown some key financial and technical indicators of the company.
So these were the 4 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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