Top Dividend Stocks to Watch Trading Ex-Dividend Next Week

If you’re looking to earn a little extra from your stock investments, dividend-paying stocks can be a smart move. With several well-known companies set to trade ex-dividend next week, it’s a great time to see which stocks could boost your portfolio returns.

In this blog post, we’ll explore what ex-dividend dates are, why they matter, and which top dividend stocks you should have on your radar in the coming days.

What Does “Ex-Dividend” Mean, and Why Should You Care?

Let’s start with the basics. An ex-dividend date is the cut-off day to be eligible for a stock’s upcoming dividend payment. If you buy the stock on or after this date, you won’t receive the declared dividend. Instead, the seller will get the dividend.

So, if you’re planning to invest in a dividend-paying stock, purchasing it before the ex-dividend date is essential to be entitled to that payment.

Quick example:

Let’s say a company declares a dividend, and the ex-dividend date is Monday. If you buy shares on Monday or later, you won’t get the dividend. But if you buy the stock by Friday, you’re in. Easy enough, right?

Why Do Investors Love Dividend Stocks?

Dividend stocks are a favorite for many reasons. Here are just a few:

Steady Income: Dividends offer a regular stream of income, which can be great for retirees or anyone wanting consistent returns.
Lower Risk: Many dividend-paying companies are established and financially stable, which can make them less risky.
Reinvesting Potential: You can reinvest dividends to buy more shares, leading to compounding over time.

Now that we’ve covered why dividend stocks matter, let’s check out the ones trading ex-dividend next week.

Top Dividend Stocks Going Ex-Dividend Next Week

According to a recent report by LiveMint, several companies are set to trade ex-dividend between April 22 and April 26, 2024. Here’s a look at some noteworthy names and their declared dividend payouts.

1. ONGC (Oil & Natural Gas Corporation)

ONGC has been a consistent dividend-paying blue-chip stock. It’s offering a final dividend of ?4.25 per share. If you’re interested, note that the ex-dividend date is coming up next week.

Why investors keep an eye on ONGC:

Strong government backing
Robust cash flows from oil and gas exploration
Favorable global energy demand trends

2. Amara Raja Energy & Mobility

This battery and energy storage company is offering an interim dividend of ?3 per share. With the growing focus on electric vehicles and renewable energy, Amara Raja is becoming more attractive to long-term investors.

3. Nuvama Wealth Management

Previously known as Edelweiss Securities, Nuvama is offering a final dividend of ?1 per share. Financial services firms that offer steady earnings often pay dividends as a way to reward shareholders.

Plus, as more people in India become financially literate and invest in markets, companies like Nuvama stand to benefit from increased demand for wealth management services.

4. REC Ltd (Rural Electrification Corporation)

REC is declaring a second interim dividend of ?5.50 per share. The firm plays a big role in India’s electrification and power sector financing. Stable utility and government-backed infrastructure players like REC are favorites among dividend seekers.

5. Indo Count Industries

This textiles manufacturer is set to trade ex-dividend next week for a final dividend of ?1.20 per share. It’s a smaller player, but those interested in diversified segments may want to take a closer look.

Other Stocks to Watch with Upcoming Ex-Dividend Dates:

India Grid Trust: Offers consistent payouts as an infrastructure investment trust.
Gulf Oil Lubricants: Known for its reliability and steady earnings.
Ester Industries: Operates in specialty chemicals and packing materials.

Should You Buy Dividend Stocks Just Before the Ex-Dividend Date?

Good question! Many new investors try to “chase dividends” — that is, buy right before the ex-date to pocket the payout. But there’s a catch.

Typically, on the ex-dividend date, a stock’s price drops by the amount of the dividend. That’s because the value of the dividend gets priced-in by the market. So, if a company declares a ?5 dividend, don’t be surprised if the stock drops by ?5 the next day.

So, what’s the smarter strategy?

Look at overall fundamentals rather than just chasing short-term gains. If the company has strong leaders, growth potential, and reliable earnings, then a dividend is simply the cherry on top.

Tips for Investing in Dividend Stocks

If you’re new to the dividend game, here are some easy-to-follow tips:

Do your homework: Understand the company’s financial condition and track record before buying.
Don’t just hunt for high yields: Sometimes high dividends are a sign of deeper trouble. Quality matters more.
Think long-term: Dividend investing works best with patience and compounding returns over time.

Personally, I remember buying into a midcap utilities stock three years ago for its regular ?2 dividend. I didn’t expect much, but over time, reinvested payouts, price appreciation, and bonus shares made it a great performer — much better than I expected.

Final Thoughts

Dividend-paying stocks can offer a cushion of safety and income when markets get bumpy. The key is finding companies that combine steady dividends with growth potential. With several major names trading ex-dividend next week, now’s the time to do your research and maybe pick up a few solid investments for your portfolio.

Remember, when it comes to dividends, don’t just follow the crowd — follow the fundamentals. Look for stability, reliability, and long-term value.

Let’s Hear from You

Have you had any good (or not-so-good) experiences investing in dividend stocks? What’s your strategy when it comes to building income through investing?

Drop your thoughts in the comments below or share this post with a friend who’s trying to make sense of dividend investing!

Disclaimer: This blog is for informational purposes only and does not constitute investment advice. Always consult a licensed professional before making financial decisions.

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