Bajaj Auto, Hindustan Zinc, Torrent Pharma Go Ex-Dividend Next Week—Here’s What You Should Know

Let’s be honest—who doesn’t love a little extra cash hitting their bank account? That’s the thing with dividend stocks. They’re like those reliable friends who always pay their share of the dinner bill. And next week, some big names—Bajaj Auto, Hindustan Zinc, Torrent Pharma, and a couple of Tata heavyweights—are about to go ex-dividend. If you’re even slightly into investing, this is worth paying attention to.

Wait, What’s This “Ex-Dividend” Thing Again?

Okay, imagine this: You’re throwing a party, and the cutoff for the guest list is Tuesday. Show up after that? No entry. Same logic here. The ex-dividend date is that deadline—buy before it, and you get the dividend; buy on or after, and you’re out of luck. Oh, and here’s the kicker: the stock price usually drops by roughly the dividend amount on that day. Makes sense, right? The company’s handing out cash, so its value dips a bit.

Other dates to know:

• Declaration date: When the company says, “Hey, we’re paying a dividend!”
• Record date: The official “who’s who” of shareholders.
• Payment date: When the money actually lands in your account.

The Big Players Going Ex-Dividend

Bajaj Auto

Dividend: ₹140 per share (not bad, huh?)
What’s the deal? Two-wheelers haven’t had it easy lately, but Bajaj’s been steady with dividends—like that uncle who always gives you the same amount for Diwali, no matter what. Yield’s around 3.2%, and the P/E ratio’s 18, which isn’t crazy. But global demand? That’s the wild card.

Hindustan Zinc

Dividend: ₹26 per share
Here’s the thing: Zinc prices are up 12% this year, so profits are looking healthier. They’ve got a rep for consistent dividends, but let’s be real—commodity prices can swing faster than your mood on a Monday morning.

Torrent Pharma

Dividend: ₹32 per share
Why it matters: They just got some FDA approvals for generics, which could mean good things ahead. The yield’s only 1.8%, but they’re paying out less than half their earnings—so there’s room to grow.

Tata Communications

Dividend: ₹21 per share
My take: With India’s cloud boom, these guys are sitting pretty. The yield’s nothing to write home about (1.5%), but they’ve increased dividends by 10% annually for five years. Slow and steady, you know?

Tata Power

Dividend: ₹2 per share (yeah, it’s small)
But here’s why you might care: 40% of their capacity’s from renewables. Green energy’s the future, and they’re betting big on it. The yield’s tiny now (0.5%), but solar projects take time. Could be worth watching.

Why This Bunch Is Interesting

You’ve got autos, metals, pharma, telecom, and power—all in one week. That’s diversification without even trying. Bajaj and Hindustan Zinc? Old-school dividend payers. The Tata companies? More about stability than flashy yields. If you’re building an income portfolio, this mix is like a well-balanced thali—something for everyone.

Picking Dividend Stocks: Don’t Just Chase the Yield

High yields can be tempting, but they’re not always what they seem. Here’s what I look at:

• Payout ratio: If they’re paying out more than 60% of earnings, that’s a red flag. It’s like someone spending their entire salary on rent—not sustainable.
• Debt: Too much debt means dividends could get cut. Hindustan Zinc’s at 0.8, which is manageable.
• Revenue growth: If earnings aren’t growing, those dividends won’t either. Inflation’s a thing, remember?

A Few Quick Tips

Don’t put all your money in one sector—spread it out. DRIPs (Dividend Reinvestment Plans) are great if you want to compound returns without lifting a finger. And timing? Buying right before the ex-dividend date can backfire. The price drops anyway, so you might overpay.

The Dark Side of Dividend Investing

Watch out for yield traps—stocks with crazy-high yields (think 5%+) are often in trouble. Vodafone Idea stopped dividends altogether. And taxes? Yeah, dividends get taxed at up to 15% in India. So that ₹140 from Bajaj Auto? More like ₹119 in your pocket.

Wrapping Up

Next week’s ex-dividend stocks are a mixed bag—some steady, some with growth potential. Bajaj and Hindustan Zinc are the yield champs, but Tata Power’s green push might pay off long-term. Just remember: sustainable dividends beat flashy numbers every time. Do your homework, and don’t get greedy.

Handy Links

• NSE’s Dividend Calendar (because timing is everything)
• Screener.in (for digging into those payout ratios)
• RBI’s Tax Guide (so you know how much you’re really keeping)

Got thoughts? Drop a comment below—I’d love to hear what you’re eyeing next week!

Source: Livemint – Markets