The dividend is one of the major factors when you are investing in a company. Today we will discuss about best dividend paying stocks in India.
When you are investing in stock market, dividend paying stocks are in more demand. An investor wants regular income from dividend paying stocks.
Blue chip stocks are more popular for providing regular dividends. Most dedicated investors in equities always want dividends because if you are getting 3 to 5% each year via dividends from your investments then it will be good additional income in your portfolio.
Before going to discuss dividend paying stocks, we will discuss various facts about dividends.
Points to look at before investing in dividend stocks
A high payout ratio would mean that a lot fewer profits are being reinvested. If the dividend is too high, then understand that the company is moving lesser profits for reinvestment and dividend payouts.
Dividend yield may vary in the stock market because the share market is dynamic and the price changes every second.
Some of the other points include identifying the best dividend paying stocks are the company’s positive cash flow.
Management needs to be very good to build the best company globally and to deliver good dividends.
Companies’ last 3 to 5 years’ track record about dividends needs to be excellent.
The bottom line of the company needs to be strong.
Always try to find quality over quantity in dividend-paying stocks.
Go with old and reliable companies. Maybe newer companies are paying very impressive dividends, but one should research the new company’s business model and longevity properly.
Top 10 Best Dividend Paying Stocks in India
- Power Finance Corporation Limited
PFC is one of the leading institutions for power and allied services. The company delivered a 12.50 rupees dividend per share between May 2021 to June 2022. Current stock price trading between 140 and 150.
2. Vedanta Limited
In the last 1 year, Vedanta delivered 4 times interim dividends 13, 31.50, 19.50, and 17.50 rupees per share. The current stock price of Vedanta is around 326. It’s one of the promising dividend providers.
3. Bharat Electronics Limited
In the last 1 year of 2022, this stock delivered a dividend of 4.5 rupees per share, and the stock price is currently trading around 100. This company prepares electronics things for the Indian defense system and for aerospace.
4. Steel Authority of India Limited
One of the major contributors to the steel sector in India, SAIL delivered a dividend of 8.75 rupees per share last year. Currently, the stock price trading around 90.
5. National Thermal Power Corporation
A major contributor to thermal energy in India, NTPC is one of the best dividend providers year-on-year. NTPC delivered a dividend of 7 rupees per share last year. Currently, NTPC stock price is trading around 165.
6. Britania Industries
Britania Industries produces cakes, biscuits, bread, and various foodstuffs in India. Stock delivered 131 rupees dividend in 2021 to 2022 financial year and currently Britania stock price trading around 4400 rupees.
7. Supreme Industries
Since 1942, Supreme Industries manufacturing and producing plastic products in India. Supreme Industries delivered a dividend of 30 rupees per share in the last 1 year. The stock price of supreme industries currently trades around 2400 rupees.
8. Dalmia Bharat
Dalmia Bharat is India based cement manufacturing company. In the last 1 year stock has delivered a 9 rupees dividend per share and currently, Dalmia Bharat’s share price is trading around the 1720 area.
9. Balkrishna Industries
Balkrishna Industries majorly offers pneumatic tires, tubes, and tire flips in India. Balkrishna Industries delivered a dividend of 16 rupees per share in the last 1 year. The current stock price is trading around the 2440 area.
10. Indian Hotel Company
It is a holding company and includes activities like accommodation, restaurants, small stays, etc. Stock delivered a dividend of 40 paise per share last year, but the share moved very up in this session. Currently, the Indian hotel share price is trading around 291.
Also Read:- Constituents of Mutual Funds in India
Point to Remember
Above mentioned stocks are only not quality stocks providing dividends, there are many other good companies providing healthy dividends. When we are planning to pick dividend stocks for good returns, there are some of the major factors that need to be focused on like the fundamental of the company, management of the company, growth story, past history, sector in which doing business, and stock market momentums.
Disclaimer: This blog is only for educational and informational purposes about Best Dividend Paying Stocks in India. Investors are advised to invest in stocks after detailed research and based on their investment requirements.