This Top Dividend Paying Stock More Than Doubles In Three Years, Check Details

Auto components manufacturer Lumax Industries has declared a final dividend of Rs 27 per equity share for the financial year ending March 31, 2023 (FY2023). Releasing its financial results for the March quarter on May 27, the Board Of Directors of the company recommended a final dividend of 270% per share at a face value of Rs 10 each for the financial year 2022-23.

The dividend payout is subject to the final approval from the shareholders at the company’s 42nd Annual General Meeting, scheduled for August 22, 2023. It is worth noting that the board of directors makes the recommendation for the dividend, so obtaining approval during the meeting is a mere formality. Lumax Industries has stated that the dividend will be paid to the eligible shareholders within 30 days of approval.

The ex-dividend date is the cutoff date after which shareholders who purchase shares will no longer be eligible to receive the dividend. On the record date, the company reviews the list of shareholders eligible to receive the dividend. Lumax has not yet announced the ex-dividend or record date.

Lumax has a strong track record of paying dividends to its shareholders. In 2022, the company provided a dividend of Rs 13.5, followed by Rs 7 in 2021 and Rs 6 in 2020. In 2019, Lumax paid a dividend of Rs 35 per share.

The automotive lighting systems manufacturer has been paying dividends almost every financial year since the financial year 2000-2001.

Shares of Lumax Industries closed 6.75 percent lower at Rs 1884.25 apiece on BSE. The stock has surged 62 percent in the past one year and over 115 percent in the last three years.

Lumax operates a factory located in Gurugram where it produces vehicle components. The company serves as a supplier to numerous major car and bike manufacturers. The majority stake in Lumax, nearly 75 percent, is held by its promoters, while the remaining shares are owned by retail investors. In 2022, foreign institutional investors held 0.47 percent of Lumax shares, and this figure rose to 0.84 percent in 2023.