2 Stocks with Dividend Announcements in Smallcap Space

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In the case of dividends, the declaration date is the date on which the board of directors announces the next dividend payment to stockholders. The record date and the ex-dividend date decide which shareholders are eligible to get the dividend. The record date is the date on which a company's management looks at the shareholder records to check who is eligible to collect future dividend payments. The most important date for dividend investors is the ex-dividend date. This date, which is normally one/two days before the record date, holds the key. Investors who buy stock on or after the ex-dividend date won’t be paid that quarter’s dividend. In our efforts to make investors aware of dividend opportunities, we have come with two companies that have announced dividends.

1. Oriental Aromatics Ltd (BO: OIEN )


Oriental Aromatics Limited is a smallcap company with a market capitalization of Rs 2,590 crore as of December 2. The company manufactures and distributes a range of chemicals, compounds, and other aroma chemicals. OAL offers synthetic camphor, terpineols, pine oils, resins, and other chemicals ranging from flavors, fragrances, pharmaceuticals, soaps, cosmetics, rubber, tyre, paints, and varnishes. The company announced an interim dividend of 30% or Rs 1.5 per equity share for FY 2022 to be paid on or before 27 December 2021. The record date for the same is December 10 and the ex-dividend date is December 9. For FY2021, the company declared an equity dividend of 50% amounting to Rs 2.5 per share. At the current share price of Rs 770, it results in a dividend yield of 0.33%. The company consistently declared dividends for the last five years.

In September 2021 quarter, the company’s net sales jumped 25.4% year-on-year to Rs 230.47 crore from Rs 183.83 crore in Q2FY2021. However, its net profit declined to Rs 12.16 crore from Rs 33.25 crore during the period under comparison. The stock’s 31.4% return in a year is less than half of S&P BSE SmallCap’s 64.3% return. The scrip’s return was 38.8% and negative 5% respectively on a year-to-date and six-month basis. Although promoters’ holding remained unchanged in September 2021 quarter, FIIs and DIIs marginally raised their holding in the company.

2. BNK Capital Markets Ltd (BO: BNKC )

BNK Capital Markets Ltd offers lease financing, investment banking, and corporate finance and advisory services. The company recommended a final dividend of 25% or Rs 2.50 per equity share for the financial year March 31, 2021. At the current share price of Rs 265, it translates into a dividend yield of 0.94%. Record date/Book closure date is December 8 and the ex-dividend date is December 9. The company has a decent dividend track record and has consistently declared dividends for the last five years.

BNK’s total income from operations declined almost 50% to Rs 7.4 crore from Rs 13.17 crore in September 2020 quarter. Its net profit declined to Rs 1.52 crore from 4.53 crore in Q2FY2021. Despite this, BNK’s stock price soared 182.5% in a year, 157.3% year-to-date, and 35.6% in six months. What is noteworthy is a 26.67% rise in holding by promoters in September 2021 quarter to 86.36% from 59.69% on a quarter-on-quarter basis. 

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  • Satish Gupta @Satish Gupta
    sir ji ,I would like to know your opinion on Gail Ltd & Rec Ltd.
    Like 0
  • Satish Gupta @Satish Gupta
    sir ji ,I would like to know your opinion on Gail Ltd & Rec Ltd.
    Like 0
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      Like 0
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  • Mrinal Hudait @Mrinal Hudait
    SIR, PLEASE WRITE YOUR ARTICLE ON IEX ,TIDE WATER & GLENMARK PHARMACEUTICAL
    Like 0
    • Mrinal Hudait @Mrinal Hudait
      yes I have read that article but for present and future investment for iex and other stocks consideration , please give your valuable advice or article if possible I will highly obliged and thankful to you.
      Like 1
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      Ok, sure.
      Like 0
    • Mrinal Hudait @Mrinal Hudait
      yes sir
      Like 0
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  • Karthik Magesh @Karthik Magesh
    what if we sell the stock after report date?
    Like 0
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      @Karthik Magesh Check the price movement before the record date
      Like 0
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