5 high dividend stocks up more than 80% in 2024 (2024)

This analysis will focus on five top companies that have excelled in both areas in 2024.

#1 Cochin Shipyard

Leading the list, defence shipbuilder Cochin Shipyard has seen an impressive 82% rise in its stock price in 2024.

Additionally, it distributed a significant dividend of 70%, equivalent to ₹3.5 per share in January 2024. With a consistent dividend payout over the past 15 years and an average dividend yield of at least 2% since 2018, the company is on a solid trajectory.

Also, the company is executing several plans that will grow its revenue in the medium term.

Cochin Shipyard's strategic expansions—including a new dry dock, a 600-tonne gantry crane, and an upgraded International Ship Repair Facility—are set to enhance its shipbuilding and repair capabilities significantly.

Its acquisition of Temba Shipyards and focus on defence and alternative fuel vessels under the CRUISE 2030 plan further secure its position as a frontrunner in the shipbuilding industry poised for growth from India's push towards self-reliance.

#2 Oracle Financial Services (OFSS)

Next is OFSS, with its shares surging 80% in 2024 and generous dividends of ₹225 and ₹240 per share.

IT companies usually declare big dividends or reward shareholders by way of buybacks. In case of OFSS, the company has increased its dividend payout consistently throughout the years.

Starting 2024, OFSS share prices woke up from a long period of underperformance and almost doubled from ₹4,300 at the start of 2024.

View Full Image

Initially, the stock price moved up after the IT company reported strong earnings performance for the December quarter, with net profit rising 69.4% on year ₹7.4 billion.

Managing director and chief executive Makarand Padalkar had said that licence fee signings aided margins during the quarter.

“Our license fee signings were $49.5 million across our product lines for both Cloud/SaaS and on-premises deployment modes. For the nine months ended December 2023, our licence signings were $117.4 million, 76% higher than the corresponding period last fiscal."

During the quarter, the company's operating margin came in at 46.1% while net profit margins came at 40.6%.

OFSS signed a landmark cloud deal with Navy Federal Credit Union, US, during the quarter.

The company's management also highlighted that they continue to see a robust deal pipeline across all the regions.

With the adoption of artificial intelligence (AI) in every industry, the future of Oracle Financial looks promising.

In recent years, OFSS has made significant investments in rapidly moving its solutions to cloud and launched solutions for Liquidity Management, Virtual Account Management, and Supply Chain Finance as cloud services, much ahead of its peers.

The adoption of AI in financial services and fintech companies is expected to grow at a CAGR of 23.37% in the next two years, which is a huge prospect for Oracle Financial as a leader in the AI space.

#3 Cupid

Following closely is Cupid, which has seen its shares surge by 77% in 2024.

The company has consistently rewarded its shareholders with dividends since 2015. In the fiscal year 2023, it distributed ₹5 per share, achieving a 2% yield. While a dividend for FY24 has yet to be announced, there is expectation that a final dividend could be declared soon.

Cupid's diverse product range includes pregnancy and COVID-19 antigen test kits.

The company has a strong international presence, exporting 68% of its products to 105 countries and generating 90% of its revenue from these markets. Despite its global reach, Cupid maintains a significant presence in India, holding a 32% share of the domestic market.

The company is poised for significant growth, planning a massive increase in production capacities.

This includes expanding male condom production to 1.25 billion units and female condom production to 125 million units within the next two years.

Looking beyond its current markets, Cupid is exploring strategic expansions and acquisitions, particularly in the in-vitro diagnostics sector. Additionally, it aims to enhance its domestic footprint by expanding retail distribution and introducing product bundles.

#4 Kalyani Steels

Next up is Kalyani Steels, which has seen its stock prices rise by 76% in 2024, boasting a current dividend yield of 1.2%.

The company has a history of regular dividend payments dating back to 2010 and declared its highest ever dividend in FY23. Given its robust performance, there is a high likelihood of another substantial dividend payout this year.

View Full Image

Part of the Kalyani Group, Kalyani Steels specializes in the manufacturing and sale of iron and steel products. Its product range includes camshafts, connecting rods, gears, transmission shafts, axle beams, and steering knuckles for the automotive industry, as well as round casts for the seamless tube industry and rolled bars for various engineering applications.

The company maintains a strong emphasis on financial prudence, holding significant cash reserves that play a critical role in risk mitigation and financial stability.

Furthermore, Kalyani Steels benefits from strong business relationships, holding approved vendor status with major original equipment manufacturers (OEMs) and strategic arrangements with suppliers for raw materials, despite the lack of long-term contracts, which supports consistent repeat business.

#5 Motilal Oswal

Rounding out this list is Motilal Oswal, whose shares have climbed by 74% in 2024.

In January, the company distributed an interim dividend of ₹14 per share, surpassing the total annual dividend of ₹10 paid in FY23. There is a strong likelihood of an additional final dividend being announced soon given the company's performance.

The steep rise in Motilal Oswal's share price can be attributed to the positive market sentiment in the sector and exceptional financial results in its fourth-quarter earnings.

For the quarter ended March 2024, Motilal Oswal Financial Services recorded a net profit of ₹7.2 billion, which is a substantial 334% increase year-on-year. The company's revenue from operations surged by 108% to ₹21.4 billion.

For the full fiscal year of FY24, the company reported a consolidated net profit of ₹24.5 billion, marking a 161% growth from the previous year.

Additionally, the board approved the issuance of three bonus shares for every one share held. During this period, the company also added 3.7 crore new demat accounts, reaching a total of 15 crore.

Motilal Oswal is strategically positioned for sustained growth, targeting a 20% increase over the medium term.

Here's what the company is expecting for FY25:

View Full Image

Snapshot of Dividend Growth Stocks on Equitymaster Stock Screener

Apart from the above, here’s a list of other dividend growth stocks:

View Full Image

Please be aware that these parameters can be adjusted based on your specific selection criteria.

This adjustment allows you to filter out stocks that do not meet your standards and highlight those that perform well within your desired metrics.

Additionally, we are moving towards a period dominated by growth-oriented companies.

Therefore, the next time you evaluate a potential investment primarily for its dividend yield, consider delving deeper. This deeper analysis might reveal insights and perspectives that were previously overlooked.

Happy Investing!

Disclaimer:This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com