Dividend Watch: BoB, HPCL, Polycab, Mahanagar Gas Among Key Companies to 

Consider Dividend Today

Introduction: Dividend Season in Full Swing

As FY25 comes to a close and earnings season picks up steam, dividend declarations are gaining momentum. Today, May 6, 2025, the boards of several blue-chip and mid-cap companies—including Bank of Baroda (BoB), Hindustan Petroleum Corporation Limited (HPCL), Polycab India Ltd, and Mahanagar Gas Ltd (MGL)—are scheduled to meet to consider final dividend payouts.

This group of dividend hopefuls cuts across sectors like banking, oil & gas, cables & infrastructure, and city gas distribution—making this a crucial day for both income-focused investors and long-term equity holders.

Let’s take a look at each of these companies, their dividend history, expected financial performance, and what investors should watch out for.

Bank of Baroda (BoB): Strong Fundamentals, Healthy Payout Likely

Bank of Baroda, one of India’s leading public sector lenders, is expected to announce a generous final dividend today, following the announcement of its Q4 FY25 results.

 Dividend History:

• FY24: ₹5.50 per share

• FY23: ₹3.20 per share

 Key Financials:

• Q4 FY25 PAT: ₹5,048 crore, up 3.3% YoY

• NII: ₹11,020 crore

• GNPA: 2.92%

• Dividend Yield (FY24): ~2.5%

 Outlook:

Given its improved asset quality and strong capital adequacy, BoB is well-positioned to maintain or even raise its dividend payout. The board is expected to discuss dividend declaration during today’s scheduled meeting.

Investor Insight: Long-term investors in PSU banks looking for income plus value may see this as a green signal to continue holding.

HPCL: Oil Major Likely to Maintain Payout Despite Volatility

Hindustan Petroleum Corporation Ltd (HPCL), the downstream PSU oil major, is also on the dividend watchlist today. Despite volatility in crude prices and refining margins, HPCL has historically maintained consistent dividend payouts.

 Dividend History:

• FY24: ₹14.50 per share

• FY23: ₹22.75 per share

• FY22: ₹26.00 per share

 Key Financials:

• Net Profit FY24 (9M): ₹9,368 crore

• Revenue Growth: Healthy on retail demand

• Debt-to-equity: Stable

 Outlook:

Even as the oil marketing space remains volatile, HPCL is likely to maintain a modest dividend. FY25 may not see a record payout, but the company’s earnings recovery suggests shareholder reward continuity.

Investor Insight: With decent dividend history and government backing, HPCL remains attractive to yield seekers in the energy sector.

Polycab India Ltd: A Dividend Star from the Cables Segment

Polycab, India’s leading cables and wires manufacturer, is among the strongest performers in the mid-cap space. With strong earnings and expanding margins, Polycab is widely expected to announce a substantial dividend.

 Dividend History:

• FY24: ₹30 per share

• FY23: ₹15 per share

• FY22: ₹14 per share

 Key Financials:

• FY25 Q4 PAT: ₹486 crore (expected, based on analyst estimates)

• EBITDA Margin: ~13–14%

• ROCE: 22%+

• Cash Reserves: Strong

 Outlook:

The board meets today to consider both financial results and dividend declaration. Market buzz suggests Polycab could reward shareholders with a final dividend upwards of ₹20/share, backed by consistent free cash flow.

Investor Insight: For investors seeking a combination of capital appreciation and dividend income, Polycab continues to stand out in the infrastructure-linked sector.

Mahanagar Gas Ltd (MGL): Utility Play with Consistent Rewards

Mahanagar Gas, a city gas distributor operating primarily in Mumbai and surrounding regions, has a solid dividend-paying track record. With stable margins, regulated pricing, and low debt, MGL is a preferred defensive dividend pick.

 Dividend History:

• FY24: ₹16 per share (interim + final)

• FY23: ₹25 per share

• FY22: ₹24 per share

 Key Financials:

• FY25 Q4 PAT: ₹265 crore (YoY growth: ~15%)

• EBITDA Margin: Stable at ~27%

• Cash & Equivalents: Healthy

 Outlook:

The company is scheduled to hold its board meeting today to consider Q4 results and final dividend. Analysts expect a payout of ₹8–₹12 per share.

Investor Insight: MGL appeals to conservative investors looking for income-generating, low-beta equity exposure with visibility.

Other Companies Also on Dividend Radar Today

In addition to these four major names, a few more companies are expected to announce dividend actions today:

What Should Investors Do?

Dividend announcements, especially final dividends, are often used as barometers of management confidence and free cash flow strength. Here's a quick framework to decide how to respond:

 For Existing Shareholders:

• Evaluate dividend continuity (vs. one-off payouts)

• Consider yield vs. capital gain opportunity

• Stay invested if overall financials are healthy

 For New Investors:

• Don't chase a stock just for dividend (beware of ex-dividend correction)

• Analyze payout ratio and free cash flow trends

• Focus on companies with predictable earnings and stable dividends

Dividend Calendar Tracker: May 6, 2025

Conclusion: Dividend Plays with Strong Business Fundamentals

While dividend declarations often grab headlines, the underlying fundamentals of these businesses are what make these stocks worth considering. Whether it’s a PSU bank like BoB, a utility like MGL, or a growth-centric player like Polycab, these companies are offering more than just a dividend—they're offering resilience and potential in an uncertain market.

As the board meetings conclude and announcements roll in, investors will be watching closely—not just for the quantum of dividends, but for the message it sends about the future financial health and shareholder-first approach of these companies.

Key Takeaways:

• Bank of Baroda, HPCL, Polycab, and Mahanagar Gas are among the top companies considering dividend payouts today.

• Dividend decisions are expected alongside Q4 FY25 earnings.

• These stocks span sectors like banking, oil & gas, manufacturing, and utilities.

• Investors should balance yield potential with valuation and growth outlook.

• Final announcements could influence short-term stock price movements.