List of all companies in India which give highest amount of dividend consistently

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What Are Dividends?

“I do not own a single security anywhere that doesn't pay a dividend, and I formed a mutual-fund company with that very simple philosophy”. – Kevin O’ Leary

“A dividend is a token reward paid to the shareholders for their investment in a company’s equity, and it usually originates from the company's net profits.

A company's earnings can be used in a variety of ways whenever it produces a profit. 

  • Invest the profit in expanding its business, such as purchasing a new property, beginning a new enterprise, or expanding into new cities, an approach commonly adopted by aggressive firms.
  • Second, it can disperse the majority of profits to its proprietors and stockholders.
  • Finally, the corporation can give a segment of the gains to shareholders while keeping the balance to fund expansion.

Most large and entrenched corporations, on an average, pay considerable dividends to their owners every year. Sometimes this payout is done twice a year, on interim and final dividends. Do note, that dividends are a reward, not a responsibility. A few corporations may pay dividends more than once a year. Your eligibility is restricted to the company declaring dividends and its shares owned by you.

What’s so good about dividends?

If you’ve been a long-term investor and have invested in stocks for lets say the next 10 years and the company does not give any dividends, then the only way to benefit from this investment is to sell your shares at a higher price. However, if the company gives dividends, then your capital is growing even if you haven’t sold the stocks. Also, you receive dividends for being loyal to the company by staying invested.

Adding to the above, getting dividends from a company is a sign of a company doing well financially. If the company is giving dividends regularly, it shows the financial strength and also enhances the goodwill and reputation of the company, thereby attracting investors. On the contrary, if the dividends received are not uniformly distributed, then it indicates that it is not very financially sound. So, dividends serve as an indicator of financial stability as well apart from increasing the shareholder capital.

Basic terminology you need to know about dividends

  • Dividend Yield: This is the annual cash dividend per share divided by the current share price. Dividend yield = (Dividend per share / Price per share) * 100
  • Payout ratio: It’s the ratio of earnings paid as dividends divided by the company’s total earnings. Mathematically speaking. Payout Ratio = Dividends per share (DPS) / Earnings per share (EPS)

Words to the wise: It’s better to try and avoid companies with high payout ratios since it indicates that the company is not retaining enough for its own growth. To put a number, stay cautious about companies with a payout ratio greater than 70%.

Which stock gives the highest dividend in India?

For experienced reward seekers, stocks with a stellar record of steady dividend payments, over the following 10 years

Company

Industry

Market Cap (Rs Cr)

Current Price (Rs)

Dividend Yield (%)

1Yr Returns (%)

 

 

 

 

 

 

Bharat Petroleum Corporation Ltd.

Refineries

100642.48

463.95

17.03

13.75

Indian Oil Corporation Ltd.

Refineries

100872.71

107.15

11.2

22.44

Indus Towers Ltd.

Telecommunication - Service Provider

57792.92

214.45

9.38

7.33

Hindustan Petroleum Corporation Ltd.

Refineries

36548.9

257.65

8.83

22.1

Coal India Ltd.

Mining & Minerals

87510.74

142

8.45

4.41

SJVN Ltd.

Power Generation-Distribution

10590.8

26.95

8.16

17.43

REC Ltd.

Finance Term Lending

29979.26

151.8

7.25

37.42

Power Finance Corporation Ltd.

Finance Term Lending

34888.68

132.15

7.19

41.69

Oil India Ltd.

Oil Exploration

17670.38

162.95

6.51

70.29

Hindustan Zinc Ltd.

Metal - Non Ferrous

139900.31

331.1

6.43

43.91

NHPC Ltd.

Power Generation-Distribution

26317.99

26.2

6.11

26.57

CESC Ltd.

Power Generation-Distribution

10133.32

764.45

5.89

28.43

NTPC Ltd.

Power Generation-Distribution

115244.88

118.85

5.17

24.71

ITC Ltd.

Cigarettes-Tobacco

259610.73

210.9

5.1

6.11

Power Grid Corporation Of India Ltd.

Power Generation-Distribution

126046.43

180.7

4.98

1.15

Sun TV Network Ltd.

TV Broadcasting & Software Production

20248.07

513.8

4.87

20.5

Ambuja Cements Ltd.

Cement & Construction Materials

78681.19

396.25

4.54

80.65

Oracle Financial Services Software Ltd.

IT - Software

39800.61

4620.6

4.33

51.14

Sanofi India Ltd.

Pharmaceuticals & Drugs

19694.64

8551.5

4.27

2.01

Castrol India Ltd.

Lubricants

13442.17

135.9

4.05

11.39

Additional Top Dividend Stocks in India

Company

Industry

Market Cap (Rs Cr)

Current Price (Rs)

Dividend Yield (%)

1Yr Returns (%)

           

Hero MotoCorp Ltd.

Automobile Two & Three Wheelers

54930.42

2749.35

3.82

-6.14

Bajaj Auto Ltd.

Automobile Two & Three Wheelers

108464.89

3748.35

3.73

20.31

Indiabulls Housing Finance Ltd.

Finance - Housing

11761.85

254.35

3.54

25.08

Redington (India) Ltd.

Trading

13389.03

342.8

3.38

168.3

Tech Mahindra Ltd.

IT - Software

132546.75

1367.6

3.29

89.7

Hindustan Aeronautics Ltd.

Airlines

35710.91

1067.95

3.09

-14.52

ICICI Securities Ltd.

Finance - Stock Broking

22613.47

700

3.07

49.47

NMDC Ltd.

Mining & Minerals

50523.64

172.4

3.07

81.95

Oil & Natural Gas Corporation Ltd.

Oil Exploration

145239.32

115.45

3.02

45.65

Torrent Power Ltd.

Power Generation-Distribution

22108.37

460

2.39

30.83

Mphasis Ltd.

IT - Software

51481.39

2749.25

2.36

126.12

Colgate-Palmolive (India) Ltd.

Household & Personal Products

45233.93

1663.1

2.28

17

Akzo Nobel India Ltd.

Paints

10139.32

2226.45

2.25

10.24

Larsen & Toubro Ltd.

Engineering - Construction

232660.2

1656.35

2.17

65.48

LIC Housing Finance Ltd.

Finance - Housing

19848.4

393.3

2.16

47.3

Steel Authority Of India Ltd.

Steel & Iron Products

55555.57

134.5

2.08

244.43

Nippon Life India Asset Management Ltd.

Finance - Asset Management

23943.95

386.75

2.07

45.71

Mahanagar Gas Ltd.

Gas Transmission-Marketing

11131.76

1126.95

2.04

17.62

Wrapping Up

“ The true investor will do better if he forgets about the stock market and pays attention to his dividend returns and the operating results of his companies.” – John C. Bogle

An astute dividend investor seeks steady dividends with high tenure, which strongly depends on the company's rudiments, as well as its dividend record, to be robust.

A weak market, downturn, or slump should not prevent solid dividend firms from paying their shareholders dividends.

If you’re someone who’s new to the whims of market swings and still desire returns not only through buying and selling but through dividends, then it’s always advisable to get in touch with a professional who can guide you through based on your budget, risk appetite and time horizon.

Frequently Asked Questions (FAQs)

1. Which are the best dividend-paying stocks in India for the long term?

  • Bharat Petroleum Corporation Limited
  • Indian Oil Corporation Limited
  • Indus Towers Limited
  • Hindustan Petroleum Corporation Limited
  • Coal India Limited
  • SJVN Limited
  • REC Limited
  • Power Finance Corporation Limited, and 
  • Oil India Limited

Majority of enterprises listed above are well-established profitable businesses.

2. In the National Stock Exchange, which firm pays the most dividends?

  • Aurum Proptech
  • Clariant Chem
  • BPCL
  • Goodyear 
  • PNB Gilts 
  • KSolves
  • Kewal Kiran
  • IOC
  • REC 
  • Tide Water Oil 
  • Coal India
  • Indus Towers 
  • Power Finance Corporation Limited

3. Which businesses are the most stable?

  • Bharat Petroleum Corporation Limited
  • Indian Oil Corporation Limited
  • Indus Towers Limited
  • Hindustan Petroleum Corporation Limited
  • Coal India Limited
  • SJVN Limited
  • REC Limited
  • Power Finance Corporation Limited, and 
  • Oil India Limited

Dividend-paying firms, by and large, are considered safe dividend stocks since they pay consistently, be it terrible economic times or market crashes.

4. How can I select a dividend investment that pays a fair yield?

By cross-referring to websites that contain details of businesses offering good and steady returns.

5. How much is the eventual dividend?

It is published by the Board of Directors after posting its confidence in the company’s financial health and paid after the fiscal year has ended.

Though not a formal resolution, nonetheless, once stated, a firm cannot backtrack.

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