These three Adani stocks are going ex-dividend on July 14 – should you buy them?

These three Adani stocks are going ex-dividend on July 14 – should you buy them?
Gautam Adani, the chairman and founder of the Adani groupBCCL
  • Three Adani stocks have declared dividends ranging from 25-250% for FY22.
  • Investors of these three Adani group companies will be eligible for dividend if they hold the stock on the ex-dividend date.
  • If you don’t already own these stocks, you can still buy them and collect dividends – but should you?
Three Adani stocks are going ex-dividend come July 14— and these stocks had declared dividends ranging between 25-250% of their face value, in FY22. Adani Enterprises, Adani Ports and Adani Total Gas – together command a marketcap of over ₹7 lakh crore.

There is an interesting inverse relationship between dividend yield and the stock rally. Adani Total Gas has the highest market cap thanks to a massive rally in the last one year, but it declared the lowest dividend at 25 paise per share. Adani Ports, which has seen a negligible increase in its market cap, has declared the highest dividend at ₹5 per share.

Adani Enterprises, the oldest company in the Adani group, declared a dividend of ₹1 per share.

CompanyMarket cap1-year changeYTDDividend
Adani Enterprises₹2,70,550 crore66.7%37.9%₹1
Adani Ports₹1,54,034 crore2.6%0%₹5
Adani Total Gas₹2,98,779 crore207.7%60.5%₹0.25

Note: Market cap and performance as of July 11, 2022 | Dividend per share

All the three stocks go ex-dividend on July 14, and the record date is July 15.

Essentially, if you want to earn dividends, you will have to buy these shares either today or tomorrow. Once a stock goes ex-dividend, you will not be entitled to receive the dividend that has been announced.

Here’s how much dividend you would have earned from the three Adani stocks over the last three years if you held 100 shares of each company:

Adani Enterprises₹100₹100₹100
Adani Ports₹500₹500₹320
Adani Total Gas₹25₹25₹25

Source: Company reports

Dividends versus returns

The dividends declared would pale in comparison to the value that these Adani stock investors have gained. All Adani group stocks saw a massive rally in the last one year.

Adani Total Gas alone tripled its returns in the last one year. The only stock that has delivered negligible returns in this time frame is Adani Ports & SEZ.

So, should you buy these Adani stocks?

According to Deepak Jasani of HDFC Securities, investors should not look at buying stocks purely for dividend.

“Adani stocks are very highly volatile counters and won't advise conservative investors to invest in these stocks only just for the dividend. Only aggressive traders can look at buying these stocks on dips based on market trends,” Prashanth Tapse, vice president – research, Mehta Equities, told Business Insider India.

Kush Ghodasara, a market expert, told Business Insider India that while Adani Total Gas is near its lifetime high and as such, at a high valuation, the other two stocks – Adani Enterprises and Adani Ports are worth considering.

At the end of the day, risk appetite alone helps determine stock investments. While high growth companies are riskier bets, they generally tend to reinvest their profits into the business instead of paying out dividends.

On the other hand, most companies which are unable to exhibit high growth, especially public sector companies, pay out higher dividends for two reasons – dividends are a way for promoters to make money, and to reward their long-term investors.


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