Before finding out the highest dividend paying stocks in India, You need to ask yourself a question, why do we invest money? We invest money to make more money in return, as simple as that.
You may ask, how can we do that? I say, with extensive market research and proper knowledge about the stocks.
See, earning a good return on investment depends on many factors. But, investing in dividend paying stocks is undoubtedly an intelligent decision to make.
How? Keep reading, and you’ll find out the answer to it.
What is Dividend?
A dividend is a reward that is paid to the shareholders by a public listed company. Dividends can be in the form of cash, shares, cash equivalents, etc., and they are usually issued from the company’s net profit or reserved cash.
What is Dividend Yield?
Dividend Yield is the ratio between the annual dividend per share and the current share price of the stock, calculated in percentage. This will help you to understand how much a company pays out in dividends on a percentage basis.
Dividend Yield = Annual Dividend Per Share/Current Share Price x 100
Let’s understand it with an example, suppose Ramesh invests in a stock that is trading at Rs 200 per share, and the annual dividend paid is Rs 20 per share. Then the dividend yield for this particular stock will be 10% [Rs 20/Rs 200 X 100].
Selecting a high dividend paying stock and investing in it won’t make you eligible for dividend payouts. Yes, there’s a catch. You need to check specific dates before investing in these stocks:
- Record Date
What is a Record Date?
The record date is the cut-off date set by the company to be eligible for bonus shares. All the shareholders who have the shares in their Demat Account on the record date will be entitled to receive Dividends from the company.
What is Ex-Date?
If you want to be eligible for the bonus share, you have to buy the shares at least one day before the ex-bonus date.
If we look at both the dates, the basic idea is that you should buy the shares before Ex-Date and make sure that the shares are present in your Demat Account on the Record Date.
Click here to find out about the record date and ex-date of various stocks.
Best Dividend Paying Stocks List
After thorough analysis and data collection from various sources, we have made the following table with the top 13 highest dividend paying stocks based on the dividend yield.
|Company/Stocks||Sub-sector||Dividend Yield (%)||Dividend per share (Rs)||Total cash dividend paid in FY
(Rs in Crores)
|Manaksia Ltd||Metal – diversified||18.68%||10.5||68.81|
|UFO Moviez India Ltd||Movies and TV serials||17.79%||15||127.58|
|IRB InvIT Funds||Roads||17.2%||0.6||9.42|
|IL & FS Investment Managers Ltd||Asset Management||13.79%||0.6||9.42|
|Indiabulls Housing Finance Ltd||Home Financing||13.51%||31||1592.67|
|NLC India Ltd||Metals – Diversified||13.35%||7.06||1182.65|
|Banco Products (India) Ltd||Auto Parts||13%||20||164.49|
|DB Corp Ltd||Publishing||10.26%||10||314.85|
|India Grid Trust||Power Transmission||9.17%||12||0|
|SJVN Ltd||Renewable energy||8.33%||2.2||922|
|TV Today Network Ltd||TV Channel and Broadcaster||8.21%||22.25||132.75|
Top Dividend Paying Stocks
In order to invest in the highest dividend paying stocks, check out brief information about each company.
Weizmann Ltd was established in 1985 and is one of the leading textile processors and exporters in India. They are on top of our chart in the highest dividend paying stocks as their dividend yield is 20.92%. The 3-year historical dividend growth looks very promising at 171.44% and the payout ratio is 5.80.
Manaksia Ltd is a leading manufacturer and exporter of coated metal and FMCG products. Established in 1984, they are one of the highest dividend paying stocks in India with a dividend yield of 18.68%. The payout ratio offered here is 1.17.
UFO Moviez India Ltd
Founded in 2005, UFO Moviez is one of the first to bring cinema digitalization with satellite technology in India. Their dividend yield is 17.79% and the payout ratio is 1.10. The 3-year historical dividend growth is at 14.47%.
IRB InvIT Funds
IRB InvIT Funds, sponsored by IRB Infrastructure Developers Limited is one of the largest infrastructure development and construction companies in India. Their dividend yield is at 17.2% with a payout ratio of 3.36.
IL & FS Investment Managers Ltd
Established in 1986, IL & FS Investment Managers Ltd is the first private-sector venture capital company in India. They are basically into asset management and offer a decent dividend yield of 13.79%.
Indiabulls Housing Finance Ltd
Indiabulls Housing Finance Ltd is the third largest housing finance company in India. Indiabulls has a balance sheet of Rs 0.96 trillion with 1 million happy customers. The dividend yield offered here is 13.51%, with a 3-year historical dividend growth rate of 4.71% and a payout ratio of 0.60.
NLC India Ltd
NLC India Ltd is a NAVRATNA company under the Ministry of Coal. For more than 60 years, they are in the mining sector and thermal power generation. The dividend yield offered here is 13.35%, with a payout ratio of 0.68.
Banco Products (India) Ltd
Established in 1961, they are the leading automotive and industrial application manufacturer in India. The dividend yield offered here is 13%, with a 3-year historical dividend growth rate of 30.5% and a payout ratio of 1.87.
DB Corp Ltd
DB Corp Ltd is widely known as Dainik Bhasker group, is the largest Indian newspaper group with over 66 editions in 4 different languages across 12 states. The dividend yield offered here is 10.26%, with a 3-year historical dividend growth rate of 6.62% and a payout ratio of 0.64.
MPS Ltd was established in 1970 as a global provider of platforms and content and learning solutions. 50 years and they are the leaders in the niche they’ve created for them. The dividend yield offered here is 9.92%, with a payout ratio of 1.56.
India Grid Trust
They are the first listed power sector Infrastructure investment trust in India. They were established to operate the power transmission and renewable energy assets in India. The dividend yield offered here is 9.17%, with a payout ratio of 1.03.
SJVN Ltd is a “Mini Ratna” and Schedule “A” PSU in India, which mainly focuses on creating clean energy from renewable resources. The dividend yield offered here is 8.33%, with a payout ratio of 0.52.
TV Today Network Ltd
TV Today Network Ltd is one of the leading English-Hindi news television networks based in India. You might have heard of “Aaj Tak”; it’s a part of the TV Today network. The dividend yield offered here is 8.21%, with a 3-year historical dividend growth rate of 123.24% and a payout ratio of 0.95.
Now that you know about the highest dividend paying stocks, CLICK HERE TO OPEN A DEMAT ACCOUNT WITH ALICEBLUE IN JUST 15 MINUTES AND START INVESTING !!
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time.