Most companies announced dividends following the Q4 results of the current financial year, but it is important to note that one should look at companies that are virtually debt-free and have a continuous record of paying dividends. As dividends are a wonderful way to make passive income, buying high-quality stocks is a solid strategy. As a consequence, here are three Mahindra group companies that will pay dividends soon.

Tech Mahindra

Tech Mahindra posted a 39.2 per cent increase in net profit YoY for the quarter ended March 31, 2022, the company recorded a net profit of Rs1,506 crore for the January-March quarter of FY22, up from a net profit of Rs1,081 crore the previous year. Its net profit for the fiscal year 2021-22 increased by 25.7% to Rs5,566 crore from the previous year, and Tech Mahindra's earnings per share (EPS) reached Rs62.8 for FY22. For the fiscal year ending March 31, 2022, the Board of Directors has proposed a final dividend of Rs15 per share and a special dividend of Rs15 per share on a face value of Rs5. The final dividend, if approved, will be paid on August 9, 2022, according to the company's financial report. Tech Mahindra has announced an equity dividend of 900.00 per cent, equating to Rs45 per share, for the fiscal year ending March 2022. At the present share price of Rs1125.05, this translates into a dividend yield of 4%.

Mahindra & Mahindra Financial Services

For the fiscal year ended March 31, 2022, the Board of Directors has recommended a dividend of Rs. 3.60 per equity share with a face value of Rs. 2 each (i.e. 180 per cent). The dividend payment is subject to approval by the company's Members at the upcoming 32nd Annual General Meeting ("AGM"). The announced dividend will be paid after July 28, 2022 to shareholders whose names appear in the company's record book on July 21, 2022. Mahindra & Mahindra Financial Services has announced a 180 per cent equity dividend amounting to Rs3.6 per share for the fiscal year ending March 2022. This translates to a dividend yield of 1.93 per cent at the current share price of Rs186.35.

Mahindra Lifespace Developers

For the fiscal year ending March 31, 2022, the board recommended a dividend of Rs2 per share. In Q4 FY22, the firm recorded a net profit of Rs136.82 crore, compared to Rs27.2 crore in Q4 FY21. In FY22, the firm recorded a net profit of Rs161.71 crore, compared to Rs71.45 crore the previous year. Net sales increased 136.7 per cent YoY to Rs393.55 in FY22 over FY21, while consolidated net sales increased 188 per cent YoY to Rs161.76 crore in the quarter ending March 2022, compared to Rs55.99 crore in the year-ago quarter. Mahindra Lifespace Developers has announced a 20.00 per cent equity dividend equivalent to Rs2 per share with a face value of Rs10 for the fiscal year ending March 2022. This results in a dividend yield of 0.48 per cent at the current share price of Rs412. The stock shall turn ex-dividend on 19.07.2022.