Investing in the dividend stocks
that yield the most can help your portfolio grow. It's a sign of financially
secure businesses. An extra revenue stream may materialize in the form of
dividends from the stocks.
Table of Contents:
1.
What is a Dividend?
2.
How do you identify dividend-paying stocks?
3. Which Stocks to Invest In?
4. Details of the companies with the
highest paying dividends!
5. Benefits of
Investing in Stocks with a High Dividend Yield!
6. Which are the
stocks that pay Monthly Dividends?
7. Factors
to look for while Investing in Dividend Stocks!
8.
Summary
1. What is a Dividend?
In exchange for their ownership stake in a
business, shareholders receive a portion of the company's profits in the form
of dividend payments. Money, shares, or other assets can be used as
payment options.
2. How do you identify dividend paying
stocks?
There are certain criteria on which stocks
can be identified as dividend paying stocks:
The Dividend Per Share -
DPS (Dividend Per Share) or the Dividend
Yield is the total net income paid out to the shareholders divided by the
common stock of the company. The higher
the DPS, the better.
The Return on Investment-
ROI (Return on Investment) is the amount of
money gained for every rupee invested. Higher the net income of the company,
higher is the ROI.
The Price Earning
Ratio-
Among the many metrics used to value a
company's stock, the Price-to-Earnings ratio (P/E) is a popular and generally
accepted metric.
To calculate the P/E ratio, divide the
stock price by its profits per share.
3. Which Stocks to Invest In?
Don't worry if you don't know which dividend-paying
stocks to buy but do have money to spend in the market.
Mentioned below is a list of various stocks in
India in which you can invest, based on their highest paying dividends and
other financial criteria.
They are the upcoming dividend stocks paying
high returns in 2023.
10 Best Highest Dividend Paying Companies:
|
SL
No. |
Company
Name |
P/E
Ratio |
Dividend
Yield |
|
|
1 |
Coal
India Limited |
11.24 |
7.96% |
|
|
2 |
Indian
Oil Corporation Limited |
5.74 |
12.74% |
|
|
3 |
Rural
Electrification Corporation Limited |
2.4 |
12.18% |
|
|
4 |
Power
Finance Corporation Limited |
2.76 |
11.45% |
|
|
5 |
Hindustan
Petroleum Corporation Limited |
0 |
6.47% |
|
|
6 |
PTC
India Limited |
5.35 |
2.6% |
|
|
7 |
NMDC
Limited |
4.83 |
11.78% |
|
|
8 |
Majestic
Auto Limited |
53.71 |
5.61% |
|
|
9 |
HUDCO
Limited |
4.05 |
10.06% |
|
|
10 |
Geekay
Wires Limited |
7.01 |
3.14% |
The filtered criteria that have been used for the evaluation are-
P/E ratio
Dividend Yield
4. Details of the companies with the
highest paying dividends!
Here are some details of the companies
paying high dividends on their stocks for your reference and better
understanding:
Coal India Ltd.- Coal India Ltd.'s primary activities include
coal
mining, coal manufacturing, and the operation of coal washeries. The electric
and metals industries are the company's largest clientele. Cement, fertilizer,
brick ovens, etc. are just a few examples of industries that use the product.
|
PE
Ratio |
11.24 |
|
PB
Ratio |
7.77 |
|
Dividend
Yield |
7.96% |
|
Market
Cap |
₹1,28,308
Cr |
Indian Oil Corporation Ltd.- The Government of India owns Indian Oil Corporation Ltd, with
interests spanning the full hydrocarbon value chain, from research and
development to exploration and production to the marketing of natural gas and
petrochemicals. When it comes to
refining and selling petroleum products in India, it is the undisputed market
leader.
|
PE
Ratio |
5.75 |
|
PB
Ratio |
0.7 |
|
Dividend
Yield |
12.74% |
|
Market
Cap |
₹93,411
Cr |
Rural
Electrification Corporation - Rural Electrification Corporation (REC) is an
Infrastructure Finance Company (IFC) registered with the Reserve Bank of India
(RBI) that provides funding for projects across the power industry value chain.
|
PE
Ratio |
2.4 |
|
PB
Ratio |
0.46 |
|
Dividend
Yield |
12.18% |
|
Market
Cap |
₹24,581
Cr |
Power Finance Corporation Ltd.- The Power Finance Corporation Limited is a Government of India
enterprise that provides financing for the power industry and is an important
NBFC (Non-Deposit Taking) registered with the Reserve Bank of India (RBI) as an
Infrastructure Finance Company. (IFC).
|
PE
Ratio |
2.79 |
|
PB
Ratio |
0.45 |
|
Dividend
Yield |
11.45% |
|
Market
Cap |
₹27,509.65
Cr |
Hindustan Petroleum Corporation Ltd.- Hindustan Petroleum Corporation Limited operates in the petroleum
industry by producing and selling refined petroleum products, hydrocarbons, and
other by-products, as well as managing building and procurement projects.
Roughly 16,500 of the firm's stores are open to the public.
|
PE
Ratio |
0 |
|
PB
Ratio |
1.08 |
|
Dividend
Yield |
6.47% |
|
Market
Cap |
₹30,711.57
Cr |
PTC- The
Power Trading Corporation (PTC) is involved in the electricity trading
business.
|
PE
Ratio |
5.35 |
|
PB
Ratio |
0.58 |
|
Dividend
Yield |
2.6% |
|
Market
Cap |
₹2,273
Cr |
NMDC- The
National Mineral Development Corporation (NMDC) is a multi-industry company
that mines, produces, sells, and generates minerals.
Established as a government-owned business,
now, under the supervision of the Ministry of Steel, it is one of the most
successful companies. The company is responsible for 18% of the country's
overall iron ore output.
|
PE
Ratio |
4.83 |
|
PB
Ratio |
1.02 |
|
Dividend
Yield |
11.78% |
|
Market
Cap |
₹37,042
Cr |
Majestic Auto Ltd.- In 2015, Majestic Auto Limited expanded into the commercial real
estate market by offering office space for hire along with facility management
services.
|
PE
Ratio |
53.71 |
|
PB
Ratio |
0.33 |
|
Dividend
Yield |
5.61% |
|
Market
Cap |
₹134
Cr |
Housing and Urban Development
Corporation- The mission of the Housing and Urban
Development Corporation (HUDCO) is to provide financial support for projects
related to the improvement of housing and urban areas across the nation.
|
PE
Ratio |
4.05 |
|
PB
Ratio |
0.47 |
|
Dividend
Yield |
10.06% |
|
Market
Cap |
₹6,976
Cr |
10) Geekay Wires- When it comes to electricity
transmission, cable & conductor, general engineering, construction, etc.,
Geekay Wires has you covered with their high-quality galvanized steel wires and
nails.
|
PE
Ratio |
7.01 |
|
PB
Ratio |
1.42 |
|
Dividend
Yield |
3.14% |
|
Market
Cap |
71
Cr |
Source: 10 Best Highest Dividend Paying Stocks in India 2023 - StockIPO
5. Benefits of Investing in Stocks with a High Dividend Yield!
The benefits of investing in stocks with a high dividend yield are
as follows:
Investors can find some solace in dividend income during
periods of range-bound equity market.
A steady dividend payout can be a lifeline for retiree
investors.
Stocks with a high dividend yield can help people establish a
passive revenue stream.
Companies that consistently distribute a dividend equal to a
portion of their earnings show signs of having stable cash flow.
The time worth of money is yet another perk of investing in stocks
with a high dividend yield. Getting a Rupee in dividends today is
better than getting the same amount in a year.
6. Which are the stocks that
pay Monthly Dividends?
Some of the monthly dividend stocks are
– LTC Properties, Pembina Pipeline, Realty Income, and SL Green.
7.
Factors to look for while Investing in Dividend Stocks!
Dividend Investing requires the following factors to keep in mind:
Dividend Yield- The higher the Dividend Yield ratio, the less money the
firm is putting back into the business and the more money it is paying out to
shareholders. So, before putting money into a business, it's important to dig
deeper into the numbers.
Risk Factor-
Stocks with a high dividend yield are generally viewed as more secure
than those with a lower yield. This is because stocks with large dividend
payments tend to hold their value better during market downturns. These
shares aid in risk management by spreading out losses. Before investing, be prepared
to take the risk.
The Fundamentals- Investing in a company solely for its high dividend payout can
be disastrous for your portfolio in the long term. Because of this, you should
evaluate the company's underlying strengths and weaknesses rather than focusing
on its payout yield.
8. Summary:
High payout stocks usually belong
to financially secure businesses. In addition, this shows that the company is
headed in the correct direction and that stockholders can expect a return on
their money. The top dividend-paying stocks have been discussed here and
you may want to include them in your investment plan or budget.
Furthermore, before making any significant
moves, it is wise to get the advice of a professional financial advisor.
Thank you for your interest in our company.
To your financial freedom!
