List of highest dividend paying stocks in India:
Investments are very essential to have a secured future in this volatile world. You may be aware that if you invest in a company for a long term, you will get high yields. But other than that how else you profit from investing in a company? Dividends, bonus, rights issue, etc. are the other benefits you can avail. You may buy a company’s share and may sell it after many years when you feel it’s the right time and also depending on your needs and lifetime goals. Before you begin to invest in a company, do a complete study of the company. Analyse its balance sheet, its future growth prospects, etc. to get a clear picture of the financials of the company.
You have to be careful in choosing the right company. Monitoring the company is necessary to take the correct investment decision. There are various factors that can affect the share price. It is highly important to stay updated with whatever happens in the stock market. As the company grows, the value of the share too grows. In this article, you will get to understand about dividends. You have to invest in high dividend yield stocks so that you can get benefitted regularly by means of receiving dividends from the company.
What is dividend?
Dividend is the cash distributed by a company to its shareholders from its profit earnings. The company may decide to reinvest its profits in business as well without providing dividends. Dividends are decided by the board of directors of the company and it has to be approved by shareholders. Dividends are paid quarterly or annually.
Dividend yield is the ratio of dividend paid per share to its current market price.
Dividend Yield= Cash Dividend per share/ Market price of share*100
Record date and Ex date:
A company that provides regular dividends is a financially sound company. The other terms you should know are record date and ex date. Record date - The shareholders who hold shares in the company on this particular date are eligible for dividend payout. Ex dividend date- This is usually one day before the record date. If you purchase a share on ex date or after it, you will not get dividend.
Dividend payout ratio:
It is the percentage of net income distributed as dividends to shareholders. It is not wise to invest in a company whose dividend payout ratio is more than 100% as the business will become unsustainable in the long run.
Now, let us look at the highest dividend paying stocks.
|Company Name||Sector||Dividend Per Share (Rs.)**||Dividend Yield (%)**||Average 5 Yr Yield (%)|
|Castrol India Ltd||Chemicals||6.6||3.2||2.5|
|Greaves Cotton Ltd||Machinery||5.2||4.4||3.6|
|Hero MotoCorp Ltd||Automobiles||102.2||2.8||3.1|
|Hindustan Petroleum Corp Ltd||Oil, Gas & Consumable Fuels||16.7||4.7||4.9|
|Indiabulls Housing Finance Ltd||Thrifts & Mortgage Finance||52.8||4.1||5.5|
|Infosys Ltd||IT Services||33.5||2.9||2|
|The Karnataka Bank Ltd||Banks||4.5||3.8||3.7|
|Power Finance Corp Ltd||Diversified Financial Services||7.4||8.4||6.3|
|PTC India Ltd||Independent Power Trading||4||4.3||2.9|
|VST Industries Ltd||Tobacco||110||3.6||4.3|