Hello, we often tell you about companies that have announced corporate action.
Recently, some companies have announced dividends.
So today we will tell you about 3 such companies whose ex-dividend dates are coming near.
The ex-dividend date is like a time frame.
To be eligible for the dividend, investors must purchase the company's stock before the ex-dividend date, or else the investors will 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 is paying relative to its market price.
To calculate a company's dividend yield, we divide the dividend per share by its current market price.
We have listed the only companies that have done so to consider:
To calculate the dividend yield, we have considered the prices at the market closing on Thursday, June 9, 2022.
We will cover the list in ascending order of dividend yield. So let's start with today's dividend alert.
1) The first company that we will talk about is Meghmani Organics Limited.
Meghamani Organics Ltd. is a leading manufacturer of Green and Blue Pigment products which are widely used in Printing ink, Plastics, Paints, Textiles, Leather, and Rubber
The company also aims to manufacture commonly used pesticides.
They have 6 manufacturing facilities which are located in Gujarat.
It is paying Rs 1.40. has been declared and its ex-dividend date is 17th June i.e. if you buy it on or before 16th June, then you will be eligible for the dividend.
The dividend yield of the dividend is up to 1.08%
The company's biggest strength is that it is an established player in the pigment and agrochemical industries.
Meghmani Organics is in the top ten positions in both of the segments.
The company has also recently diversified into white pigment (TiO2) manufacturing through an acquisition where they will also expand capacity in the future.
This move can prove to be very profitable for them as there is a huge gap between the demand and supply of white pigment in the market.
The company's major weakness is its dependence on weather.
The uneven rains may see a negative impact on the top line and bottom line of the company as the agrochemical business is the major revenue stream for them.
Also, due to seasonal demand for agrochemicals, there is a lot of pressure on the working capital management 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 below than 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 ie 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 Newgen Software Technologies Ltd.
Newgen Software Technologies is a global software company that provides services such as software product development and software designing.
The company has built up a well-established client base across 30 salons across diverse geographies.
The company declared Rs 4.5 Dividend per share and its ex-dividend date are 15th June i.e. if you share it on or before 14th June, you will be eligible for dividend.
The dividend yield of the dividend makes up to 1.20%
Newgen's biggest strength is its R&D.
The company has continuously increased investment in R&D over 5 years resulting in their continuously improving operational efficiency.
The company has filed 44 patents which show that the company has created a basket of diversified products and services with the help of these innovations.
This gives them a technical advantage and helps in improving margins.
As their investments in R&D have increased, so has their topline and profitability, where FY20 was an exceptional year due to COVID19.
Newgen's biggest weakness is that its operating margins depend on how long and how large the contract is.
This high fixed cost or high attrition rate is putting a lot of pressure on their business.
Mildly high attrition industry-wide is a problem, but Newgen's attrition rate is 40% which is very high.
Thereby, there may be a backlog in the project implementation of the company.
As you can see on your screen, we have shown some key financial and technical indicators of the issuing company.
The third company is Apollo Tyres
Apollo Tyres is the leading manufacturer of tyres and tubes.
The company's manufacturing plants are located at various strategic locations in India such as Kochi, Vadodara, Pune, Chennai, and Chittoor.
The company caters to the OEMs i.e. Original Equipment Manufacturers and the Replacement Market.
This means that Apollo Tyres directs automobile companies to carry tires as per their design and performance needs, as well as tires used for the replacement of these OEM tires.
Apollo Tyres has declared a dividend of Rs 3.25 and its ex-dividend date is 16th June i.e. if you buy it on or before 15th June, then you will be eligible for the dividend.
The dividend yield is up to 1.56%
The biggest strength of Apollo Tyres is its strong position in the domestic tyre industry and wide distribution network.
They have 6800 dealers across India which strengthen its market position.
This, along with the revenue coming from their diversified segment and diverse geographies, can take the company to its growth trajectory.
The biggest weakness for the company is the risk of the cyclicality of the tyre industry and extreme volatility in raw materials.
Demand in this industry fluctuates greatly, especially in commercial vehicles.
In addition, 60% of the company's operating cost is made up of raw materials such as rubber, carbon black, etc.
The price of rubber depends on global demand and, the price of carbon black and other raw materials depends on crude oil.
So, if the macro environment does not turn out to be favourable, then there could be a negative impact on the P&L statement of the company.
As you can see on your screen, we have shown some key financial and technical indicators of the issuing company.
The fourth company is Bank of Baroda
Bank of Baroda is a public sector bank. After the merger with Vijaya Bank and Dena Bank in FY20, the branches of Bank of Baroda grew from 5500 to 9500.
The bank has 96 overseas branches in 19 countries.
Rs. 2.85 dividend per share has been declared and its ex-dividend date is 17th June i.e. if you buy the share on or before 16th June, then you will be eligible for the dividend.
With this, the dividend yield of the dividend comes out to 2.71%
One of the major strengths of the bank is the improvement in its asset quality.
The bank's asset quality appears to be improving even in tough times like COVID-19, which is a pretty strong indicator of growth.
Gross NPAs of the bank are reduced by 226 basis points (bps) in FY22.
The net NPA of the bank has also seen a reduction of 137 bps.
The bank faced several challenges on the corporate asset side in FY21-22.
The slippages of the bank have been seen increasingly in the last quarter.
Slippage is when the assets of banks turn into non-performing assets (NPAs) because the borrower did not make interest payments on time.
46% of Bank of Baroda's contribution to these fresh slippages comes from the corporate loan book.
And if the economy does slow down, the bank's earnings could be negatively impacted by slow credit growth and already high credit costs.
As you can see on your screen, we have shown some key financial and technical indicators of the company.
The fifth company is Canara Bank.
Canara Bank is a Bangalore-based Public Sector Bank with over 1-century banking experience.
Canara Bank has become India's fourth-largest nationalized bank after its merger with Syndicate Bank in April 2020.
Canara Bank has 9800 branches in India. The bank also has branches in New York, London, Dubai, and Hong Kong.
The bank will pay Rs 6.50 dividend per share and its ex-dividend date is 15th June i.e. if you own shares on or before 14th June then you will be eligible for dividend.
The dividend yield of the dividend is made up to 3.13%.
This bank is strategically important for the Government of India.
The Government of India is still the majority stakeholder in the bank at 62.93%.
Due to this reason, the bank gets good capital infusion and experienced management support from time to time.
In the last few financial years, the Government of India has made a capital investment of ₹ 20,701 crores in Canara Bank and Syndicate Bank on an alliance basis.
The weakness of Canara Bank is that they have not focused much on marketing, due to which their visibility in the market has not been created that much.
Most of their presence is in southern India, which proves to be a geographical risk for them.
At the same time, the growth of the bank has not been as fast due to a weak client base.
As you can see on your screen, we have shown some key financial and technical ratios of the issuing company.
So these were the 3 companies whose ex-dividend dates are near, 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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