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5 Indian stocks to look out for in October 2022

Akshata Kamath
Akshata KamathSep 22, 2022 | 15:06

5 Indian stocks to look out for in October 2022

5 companies can give you passive income in October 2022.Photo: Getty Images

If you are looking to make some passive income in the month of October 2022, 3 listed Indian companies will be distributing a good amount of money as dividends while 2 will be giving bonus issues. This includes Maharashtra Scooters, Taal Enterprises, Accelya Solutions, Insecticides India and Ruchira Papers.

About hundreds of companies announced their dividends in August and September 2022, in sync with the companies' return filing cycle. Companies usually declare dividends at the AGM, which usually happens once the financials for the year 2021-2022 are frozen or in the process of being frozen.

But first, here are the 3 terms you should know: 

  • Dividend declaration date: This is the date when the board of directors announces that the company will pay the dividend. Also, the board will announce the dividend rate and the amount in rupees. 
  • Record date: If you want to receive dividends as an investor, your name needs to be present in the company's list of shareholders on the record date. So say a company's record date is October 5, 2022, then your name has to be present in the list of the company's shareholders as of that date. 
  • Ex-dividend date: This date is usually 2 to 4 days before the record date. Why? Trading in the Indian stock market happens on T+2 days ie one only receives stocks in their demat account two days after executing a trade. So, if a company's record date is October 5, you need to buy shares on or before October 3. What happens if you buy shares on October 4 or 5? The seller will receive the dividend and not you.   

Now that most companies are in the process of filing returns, there will be very few companies that will actually pay dividends. But, in case you have missed the bus, here are 3 companies, whose stocks can help you make some passive income.   

1. Accelya Solutions: Accelya Solutions has declared a final dividend of 450% which amounts to Rs 45/share. Accelya's current market price per share as of September 22, 2022, is Rs 1,141. The record date is October 10, 2022, and the ex-dividend date is October 6, 2022.

2. Maharashtra Scooters: Maharashtra Scooters Ltd declared an interim dividend of 1000% which amounts to Rs 100/share for the financial year ending 31 March 2023. Maharashtra Scooter's current market price per share as of September 22, 2022, is Rs 5,200. The record date is September 23, 2022, whereas the dividend will get credited on October 10, 2022.  

3. Taal Enterprises: Taal Enterprises Ltd has declared an interim dividend of 225% which amounts to Rs 22.50/ share for the financial year 2022-23. The record date is September 24, 2022, and the interim dividend will be paid on or before October 15, 2022.

While these 2 will issue bonus shares: 

4. Insecticides India Ltd: Insecticides India Ltd declared a bonus issue of equity shares in the ratio of 1:2 ie one equity share of Rs 101 each for every two fully paid-up equity shares of Rs 101 held. The record date is October 3, 2022. 

5. Ruchira Papers: Ruchira Papers has declared a bonus share issue in the ratio of 1:10 ie one new fully paid-up equity share of Rs 10 each to be issued for every ten equity shares held. The record date is October 10, 2022.

Last updated: September 22, 2022 | 15:06
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