In today’s market, investors are always looking for the best returns on their investments. One of the most important questions to ask when investing is: What are the highest dividend paying stocks in India?
This is a very important question in order to maximize the return on your investments. Dividend yields can make up a large portion of returns from stocks, so it is important to be aware of which stocks are offering the most generous dividends in India.
There are many high dividend paying stocks in India, but some stand out from the rest. Here are the top 10 highest dividend paying stocks in India.
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4 Benefits of Investing in High-dividend Paying Stocks
1. Income: One of the main benefits of investing in high-dividend stocks is the potential for income generation. Investing in these stocks typically provides a steady stream of income.
2. Growth Potential: In addition to providing income, high-dividend stocks also allow investors to benefit from future growth potential. As dividends are paid over time, investors can enjoy incremental price appreciation or capital gains due to changing fundamentals or other market forces.
3. Diversification: High-dividend stocks provide an opportunity for diversification within an investor’s portfolio. They can be used to balance the higher risk associated with investments such as growth stocks.
4. Generational Wealth: High-dividend stocks often provide the potential for passing wealth on to future generations. As dividends are paid out regularly, they may be reinvested over time, allowing investors to compound their profits.
10 Highest Dividend Paying Stocks in India
Welcome to our discussion on the highest dividend paying stocks in India. Here we will analyze stocks that have a history of consistently paying out dividends and explore why they have been so successful in doing so. We will look at their financial results and other factors that have an effect on their ability to pay a healthy dividend. We will also discuss the benefits of investing in high-dividend stocks, as well as the potential risks associated with them.
1. RSWM Ltd.
Rswm.in is a leading textile company in India with a strong focus on technological advancements. It has been in the business of fabric and yarn production for over 30 years and has become a leader in the production of circular knitting fabrics, knitted apparel fabrics, and home textiles. They have a wide range of products, from fabrics to apparels, and provide a platform for customers to purchase online. Their mission is to provide world-class products and services to the customers by utilizing the latest technology and innovations.
- Share Price: INR 183.55/-
- Dividend Yield: 13.65%
- Last One-Year Dividend/Share: INR 25/-
2. Banco Products
Banco Products (India) Limited is an Indian multinational company that manufactures automotive components and industrial products. Founded in 1956, Banco has been providing high-quality, innovative and reliable products to its customers for more than 60 years. Today, it is a leading player in the industrial sector, offering a wide range of products ranging from bearings and seals to engine parts and other automobile components. With a strong commitment to quality, innovation and customer service, Banco is dedicated to delivering solutions that meet the highest international standards of quality.
- Share Price: INR 198.65/-
- Dividend Yield: 10.15%
- Last One-Year Dividend/Share: INR 20/-
3. REC Ltd.
REC Ltd. is a leading public sector power finance and infrastructure development company in India. It is focused on financing and promoting investments in the power and renewable energy sectors. The company provides long-term debt and equity financing to project developers, lenders, and corporate entities. REC also provides financial advice and services related to power sector projects.
- Share Price: INR 113.35/-
- Dividend Yield: 10.07%
- Last One-Year Dividend/Share: INR 12.80/-
4. NALCO
National Aluminium Company Limited (NALCO) is the largest integrated alumina-aluminium complex in Asia and one of the leading producers of aluminium in India. NALCO was established in 1981 as a public sector enterprise of the Ministry of Mines, Government of India. It is a global leader in the production of aluminium, with operations in bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port operations. NALCO specializes in the production of high quality aluminium products for various industries, including automotive, aerospace, construction, packaging, consumer electronics, and energy.
- Share Price: INR 78.75/-
- Dividend Yield: 8.33%
- Last One-Year Dividend/Share: INR 4.50/-
5. Standard Industries
Standard Industries Limited, known for its prestigious brand position in the market, is renowned as one of the premier companies in the industry. With over one hundred years of experience in textiles, chemicals, and many other fields, we continuously strive to deliver nothing less than brilliant products and services to our valued customers.
- Share Price: INR 31.50/-
- Dividend Yield: 7.98%
- Last One-Year Dividend/Share: INR 2.50/-
6. Coal India
Coal India Limited (CIL) is the world’s largest coal mining company and produces 84 percent of India’s total coal. Established in 1975, the company serves the energy needs of various domestic and industrial sectors. CIL operates through its subsidiary companies which have a combined workforce of over 3.5 lakh employees.
- Share Price: INR 223.20/-
- Dividend Yield: 7.73%
- Last One-Year Dividend/Share: INR 18/-
7. GAIL (India)
Gail India Limited (GAIL) is a state-owned natural gas processing and distribution company in India. It is the largest state-owned natural gas processing and distribution company in India with an annual turnover of about Rs. 53,000 Crores. GAIL has created a strong presence for itself in India’s natural gas sector through its infrastructure and operations. It is involved in the complete value chain of natural gas from exploration to processing, transportation and marketing.
- Share Price: INR 183.55/-
- Dividend Yield: 13.65%
- Last One-Year Dividend/Share: INR 25/-
8. Oil India
OIL India Limited (OIL) is India’s oldest oil and gas exploration and production company. It is a public sector undertaking (PSU), owned by the Government of India, with its corporate headquarters in Duliajan, Assam. OIL has been at the forefront of India’s oil and gas exploration since 1959, having played an important role in India’s growth story over the decades. OIL is committed to ensuring sustained and secure energy supply through innovative exploration, development and production of oil and natural gas.
- Share Price: INR 209.65/-
- Dividend Yield: 6.86%
- Last One-Year Dividend/Share: INR 10.75/-
9. HUDCO
HUDCO (Housing and Urban Development Corporation Ltd.) is a Government of India owned enterprise that provides housing investments, loans, and technical services for the social, economic and physical development of cities and towns throughout India. It finances infrastructure projects, housing and urban development activities, and promotes slum improvement. HUDCO’s mission is to provide support to a wide range of stakeholders in the housing sector, including individuals, households, cooperatives, corporations, public bodies, and non-governmental organizations.
- Share Price: INR 51.70/-
- Dividend Yield: 6.85%
- Last One-Year Dividend/Share: INR 3.50/-
10. Oracle Financial Services Software Ltd.
Oracle Financial Services Software is an AI-powered platform that provides a range of financial services solutions, including core banking, payments, analytics and risk management. This platform helps organizations to better manage risk, improve customer engagement, optimize operations and reduce costs. The solutions offered by Oracle Financial Services Software are powered by advanced analytics, machine learning and artificial intelligence, enabling organizations to make faster, smarter decisions.
- Share Price: INR 3002.95/-
- Dividend Yield: 6.32%
- Last One-Year Dividend/Share: INR 190.00/-
FAQs
What is Dividend Yield?
Dividend yield is a financial ratio that calculates the amount of money a company pays out in dividends each year relative to its stock price. It is expressed as a percentage and provides investors with an indication of how much income they can expect to receive from a given stock.
Which stocks pay highest dividend?
RSWM Ltd., Banco Products, and REC Ltd. are top 3 stocks that paid highest dividend in year 2022. These dividend yields are 13.65%, 10.15%, and 10.07% respectively.
Final Words on Highest Dividend Paying Stocks in India
In conclusion, highest dividend paying stocks in India are a great way to generate steady income. Such stocks offer a higher return on investment than most other investment options. They provide an attractive source of passive income and can be a great addition to one’s portfolio. However, it is important to research carefully before investing in such stocks to ensure that the dividend payments are reliable and the underlying business is healthy.
