Are you an investor and you are looking for the highest dividend paying stocks in India? Well, After Research and my own experience, I have listed some of the best high-paying dividend stocks in India.
Dividends have always been a sweet addition to your earnings. While some stocks provide Dividend-paying stocks that give you an opportunity to grow your investment with regular income from the company For economic strong countries or developing countries, Dividend Paying Stocks are the most important factor. This means an investor gets its payout from the company’s profit from time to time as per invested shares.
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What are Dividend Stocks?
Dividend stocks are nothing but it is a company’s profit part which is distributed as per investor Owned shares on a regular based. In some countries, shareholders or investors gets a payout quarterly even though some companies pay more over time than their share or Stocks.
Generally, dividends are paid out when a certain company has excess cash through the invested shares, and that excessed cash is paid to their holders. A payout ratio of 40% is the least dividend payout ratio of profitable companies. While some top one’s companies paid their stockholders in their earnings while other hands companies only just pay a portion of their earnings.
How do Dividends Work?
Every stock does not give dividends it totally depends from company to company it’s possible that a company that has been giving dividends in the past, can now stop giving them to anyone, and a company that has never given dividends in the past can now start it, it is completely the choice of the company
- if you want to adopt a dividend income strategy, then you will have to pick those stocks which have been regularly, in a disciplined manner giving dividends every year, because now that becomes the habit of the company and the way that it works
- So the first thing that you need to know is the history of the dividend payout in the company.
- The Second most important thing is the dividend yield.
That is the company give is mostly in the range of 1-3%. If it’s higher than 3-4%, then it is a very good dividend yield. If it is less than 1, then take it to be zero only or it is. so little that it doesn’t make a difference like you have taken a stock worth 100 and you are not even getting a dividend of 1 in the year on it.
10 Highest Dividend-paying stocks
India’s economy is booming like lightning so investing in shares of economically growing countries pays such handsome returns. But it’s become very important while invest in some companies also while a country is economically growing. Although some top 10 companies as discussed below are safe to invest and those are the companies’ shares tagged as the Highest Dividend Paying Stocks.
Hindustan Unilever Limited (HUL)
Hindustan Unilever, the consumer goods giant, is one of the top 10 highest dividend-paying stocks in India. The company has been paying dividends since 1933. Its long-term dividend growth rate stands at 14.1%. Its net profit increased by 9.6% in FY19. HUL has a dividend payout ratio of 36% and a dividend yield of 1.27%. HUL has a market capitalization of INR 6,30,172 Cr. It has a dividend payout ratio of 36% and a dividend yield of 1.27%. The stock currently trades at a PE of 70.97 and a PB of 12.84%.
Britannia Industries Ltd
Britannia is a food industry company leading in packed foods sectors. This brand comes up with different types of cake, bread, biscuits, and risk business. By the end of March 2022, Britannia Industries Ltd reported 5650.00% dividend equity with a per share of INR 56.6 at the time the dividend stock of 1.51% costs INR 3747.75 also a good track report with consistent dividends observed in the last 5 years. The PE Ratio is 59.97 And the PB ratio is 35.37.
Hindustan Zinc Ltd
Hindustan Zinc Ltd is the one and only limited company which produces lead and zinc both together. This limited company produces three types of quality Zinc – Zinc used in infrastructure, household appliances, and construction is special High grade; High-grade Zinc; prime western zinc. Lead produced by Hindustan zinc is highly pure which is used in electrodes, lead acid battery and ceramic glazes.
Hindustan zinc is also active in silver metal and wind energy. In the end of March 2022 company declared 900% of dividend equity amounting to approx INR 18 per share. The current share price is INR 285 with a dividend of 6.32%.
Vedanta Ltd
Vedanta also Sesa Goa Ltd. is the largest producer of iron ore in India and number fourth in the world. Also, Vedanta produces metallurgical coke, Aluminium, Copper, Power, and pig iron. At the end of March 2022 Vedanta dividend 4500% per share worth approx INR 45. At the time of the 16.69% dividend yield, each share cost INR 269.60. Vedanta in the last 5 years showed a better dividend track and declared dividends consistently.
Coal India Ltd
Coal India Ltd ranks number one in producing coal in the world. This company produces various types of coals used in Industries and household sectors. This company is associated with different types of public and private companies such as steel and cement producers and thermal power generation companies.
In March 2022 ending coal India declared 170% of dividend equity with one share worth Approx INR 17. at this time one share is worth INR 234.80 with 7.24% of the dividend yield. In the past 5 years coal India has had an excellent track record with declared dividends.
Indian Oil Corporation Ltd
Indian Oil Corporation Ltd is a public Oil company and petroleum major company. This company handles the largest and wide network of oil systems across the country; also for its customers, the company provides multiple facilities with rest room, first aid, food court, etc. In rural areas for farmers, this company offers fertilizers, seeds, pesticides, farming equipment services, and farming equipment.
IOC also worked with future energy consumption and green energy for an environment like wind power, and solar energy which are highly demanded now and solve class energy usages. At the end of March 2022, IOC reported 114% of dividend equity with INR 11.4 per share, and currently, each share costs Approx INR 67.45 with 12.15% of the dividend yield.
HDFC Ltd
HDFC is amongst the 10 highest dividend-paying stocks in India. The company’s dividend yield stands at 1.27%, which is higher than the sector Dividend Yield of 0.90%. The financial services behemoth has been paying dividends since 2003. It boasts of a long-term dividend growth rate of 15.7%. The company’s net profit increased by 10.1% in FY19. HDFC has a market capitalization of INR 4,27,418 Cr. It has a dividend payout ratio Approx of 62% and a dividend yield of 1.27%.
Power Finance Corporation Ltd
Power Finance Corporation or PFC is the corporation for financial institutions which supplies power to the sectors. This Means PFC provides services like short or long-term loans, consultancy services, lease financing, etc. And a large range of financial products. By the end of March 2022, PFC declared 120% of dividend equity with a share price of INR 12 but shockingly at this time the 10.3% dividend yield increased with a current share price of INR 119.60.
Oil and National Gas Corporation Ltd
ONGC or Oil and National Gas Corporation Ltd is also a public sector company founded in 1956 later on in 1993 ONGC became a public sector company. ONGC only deals with natural gas, crude oil, LPG, and some other petroleum like C2-C3, NGL, Kerosene, and Aromatic Rich Naphthalene. At the end of March 2022, ONGC reported 210% dividend equity with a share price of INR 10.5 but nowadays per share it’s worth INR 138.60 with a 7.58 % dividend yield.
PTC India Ltd
PTC INDIA Ltd is also known as Power Trading Corporation. PTC traders long and short-term power trade all over India. PTC entered into Power Sale Agreements (PSA) and Power Purchase Agreements (PPA) in India and abroad independently. In short-term power trade, PTC Trade some small amount of energy to the sectors in an emergency or as per their demand, and for long-term Trade PTC provides power on regular basis.
Note: In investing stock market has a risker. so Before investing in any stocks please consult with your financial advisor. In this blog, for any stocks not recommended. do your own research and make decisions. this blog is written only for educational Purposes
Conclusion
The best way to earn money in the long term is to invest it. Investing can be a daunting task and it’s important to get it right the first time. Choosing the right stocks is the key to successful investing. While some stocks provide lucrative capital gains, others offer dividends that are reinvested back into the company and yield a steady stream of income. Dividend-paying stocks give you an opportunity to grow your investment with regular income from the company. We have listed the 10 highest dividend-paying stocks in India. So, when you are choosing stocks for your portfolio, make sure you consider these as well.