Consumer Finance Stocks With High Dividend Yield

Consumer Finance Stocks With High Dividend Yield

The below table shows BConsumer Finance Stocks With High Dividend Yield based on the Highest Market Capitalization.

NameMarket Cap (Cr)Close Price (rs)
Shriram Finance Ltd90218.462400.75
Muthoot Finance Ltd65568.731633.25
Mahindra and Mahindra Financial Services Ltd35547.59288
Manappuram Finance Ltd15984.92188.85
Capital Trust Ltd184.72113.9
Transcorp International Ltd129.3540.53
Sakthi Finance Ltd94.556.99
Haryana Capfin Ltd89.86172.2

Content:

What are Consumer Finance Stocks?

Consumer finance stocks represent companies that provide financial services directly to individual consumers, including loans, credit cards, and personal insurance products. These stocks encompass a range of financial institutions focused on consumer credit and banking services.

These companies benefit from consumer spending and credit usage, making their performance closely tied to economic health and consumer confidence. When the economy is strong, consumer finance companies typically perform well due to increased borrowing and spending.

However, the sector is also sensitive to economic downturns, which can lead to higher default rates on loans and reduced profitability. Regulatory changes can also impact these companies, requiring careful monitoring by investors.

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Best Consumer Finance Stocks With High Dividend Yield

The table below shows the Best Consumer Finance Stocks With High Dividend Yields based on 1 Year’s Return.

NameClose Price (rs)1Y Return (%)
Haryana Capfin Ltd172.2237.18
Sakthi Finance Ltd56.9985.15
Shriram Finance Ltd2400.7581.69
Capital Trust Ltd113.971.02
Muthoot Finance Ltd1633.2555.72
Manappuram Finance Ltd188.8547.83
Transcorp International Ltd40.5331.59
Mahindra and Mahindra Financial Services Ltd28810.49

Top Consumer Finance Stocks With High Dividend Yield

The table below shows Top Consumer Finance Stocks With High Dividend Yield based on 1 Month Return.

NameClose Price (rs)1M Return (%)
Muthoot Finance Ltd1633.2523.21
Transcorp International Ltd40.5320.26
Manappuram Finance Ltd188.8512.79
Mahindra and Mahindra Financial Services Ltd28810.97
Capital Trust Ltd113.98.86
Shriram Finance Ltd2400.755.72
Sakthi Finance Ltd56.991.86
Haryana Capfin Ltd172.20.32

List Of Consumer Finance Stocks With High Dividend Yield

The table below shows a List Of Consumer Finance Stocks With High Dividend Yields based on the highest day Volume.

NameClose Price (rs)Daily Volume (Shares)
Manappuram Finance Ltd188.854079717
Mahindra and Mahindra Financial Services Ltd2881277406
Shriram Finance Ltd2400.75806605
Muthoot Finance Ltd1633.25479495
Capital Trust Ltd113.913458
Transcorp International Ltd40.535496
Haryana Capfin Ltd172.21438
Sakthi Finance Ltd56.99449

High Dividend Consumer Finance Stocks 

The table below shows High Dividend Consumer Finance Stocks based on the PE Ratio.

NameClose Price (rs)PE Ratio
Transcorp International Ltd40.53296.77
Capital Trust Ltd113.9230.49
Haryana Capfin Ltd172.247.13
Sakthi Finance Ltd56.9921.73
Mahindra and Mahindra Financial Services Ltd28816.56
Muthoot Finance Ltd1633.2514.94
Shriram Finance Ltd2400.7512
Manappuram Finance Ltd188.856.88

Who Should Invest In Consumer Finance Stocks With High Dividend Yield?

Investors seeking stable income and those with a good understanding of economic cycles should consider consumer finance stocks with high dividend yields. These stocks are ideal for income-focused portfolios, offering regular dividends from companies that profit from lending and financial services.

Such stocks attract investors who can assess and tolerate economic fluctuations. They are suited for those who recognize that while high dividends are appealing, they come with risks associated with the financial sector, particularly in economic downturns.

Moreover, these stocks are recommended for investors willing to conduct thorough research into company fundamentals and regulatory impacts. This careful approach ensures an understanding of dividend sustainability amidst potential economic uncertainties.

How To Invest In The Consumer Finance Stocks With High Dividend Yield?

To invest in consumer finance stocks with high dividend yields, open a brokerage account with Alice Blue. Identify well-performing companies within the consumer finance sector that consistently offer high dividends, evaluating their financial health and market position.

Once your account is set up, diversify your investments across various consumer finance companies to mitigate risks. Look for companies with a strong track record of dividend payments and financial stability to enhance your income potential.

Regularly review and adjust your portfolio based on performance and changes in the economic environment. Monitoring economic indicators and company financials will help optimize your investment in high-dividend-yielding consumer finance stocks.

Performance Metrics Of Consumer Finance Stocks With High Dividend Yield

Performance metrics of consumer finance stocks with high dividend yield include dividend yield, payout ratio, and return on equity. These metrics help investors evaluate the dividend sustainability, profitability, and efficiency of capital usage by the company in providing consumer financial services.

Dividend yield is a crucial metric, indicating how much a company pays out in dividends relative to its stock price. A high yield can be attractive, but it’s essential to analyze whether the company can sustain these payments without compromising financial stability.

The payout ratio reveals the percentage of earnings distributed as dividends. A sustainable payout ratio suggests a balance between rewarding shareholders and retaining earnings for growth. Additionally, return on equity measures how effectively a company uses its capital to generate profits, impacting its ability to maintain or raise dividends.

Benefits Of Investing In Consumer Finance Stocks With High Dividend Yield

The main benefits of investing in consumer finance stocks with high dividend yield include receiving a steady income from dividends, potential capital appreciation, and the ability to benefit from the overall growth in consumer spending, which typically drives the financial performance of these companies.

  • Regular Income Generation: High dividend yield consumer finance stocks provide a consistent source of income through dividends. This is particularly beneficial for investors looking for regular cash flow, helping to stabilize their income regardless of market conditions.
  • Capital Appreciation Potential: Besides dividends, these stocks often offer the potential for capital gains. As consumer finance companies grow and expand their operations, the value of their stocks can increase, providing investors with a profitable return on investment.
  • Economic Growth Leverage: Investing in consumer finance stocks allows investors to leverage economic growth. As economies expand and consumer spending increases, consumer finance companies typically see improved profitability, which can lead to higher dividends and stronger stock performance.

Challenges Of Investing In Consumer Finance Stocks With High Dividend Yield

The main challenges of investing in consumer finance stocks with high dividend yield include market volatility, credit risk exposure, and regulatory changes. These factors can significantly affect the financial stability of these companies, impacting their ability to maintain high dividends.

  • Market Volatility Impact: Consumer finance stocks are often vulnerable to market swings, which can lead to significant price fluctuations. Economic downturns can reduce consumer borrowing and spending, adversely affecting these companies’ profitability and their ability to pay dividends.
  • Credit Risk Concerns: These companies face credit risk from defaulting loans. During economic contractions, default rates can increase, putting pressure on the companies’ earnings and, subsequently, their dividend payouts, making this a risky sector during recessions.
  • Regulatory Uncertainties: Consumer finance is a heavily regulated sector. Changes in regulations or compliance requirements can lead to increased costs or operational adjustments, potentially impacting profitability and the sustainability of high dividends.

Introduction to Consumer Finance Stocks With High Dividend Yield

Shriram Finance Ltd

The market capitalization of Shriram Finance Ltd is ₹90,218.46 crore. Its monthly return stands at 81.69%, while its one-year return is 5.72%. Currently, the stock is 8.53% away from its 52-week high.

Shriram Finance Limited, an Indian retail non-banking finance company (NBFC), focuses on financing various vehicles, equipment, and enterprises. It caters to commercial vehicles, passenger vehicles, construction equipment, farm equipment, and micro, small, and medium enterprises (MSMEs), among others. Additionally, the company provides services like fixed deposits and recurring deposits. Its subsidiaries include Shriram Housing Finance Limited (SHFL) and Shriram Automall India Limited (SAMIL).

As an India-based NBFC, Shriram Finance Limited specializes in financing a diverse range of vehicles and enterprises. Its services extend to commercial and passenger vehicles, construction and farm equipment, and MSMEs. Furthermore, the company offers fixed and recurring deposit options. Notably, its subsidiaries, Shriram Housing Finance Limited (SHFL) and Shriram Automall India Limited (SAMIL), contribute to its comprehensive suite of financial solutions.

Muthoot Finance Ltd

The market capitalization of Muthoot Finance Ltd is ₹65,568.73 crore. Its monthly return stands at 55.72%, while its one-year return is 23.21%. Currently, the stock is 4.00% away from its 52-week high.

Muthoot Finance Limited, an Indian gold financing firm, operates as a non-banking financial company, specializing in financing services. It primarily offers personal and business loans secured by gold jewelry, focusing on household-used gold ornaments. Its loan schemes encompass various options like the Muthoot One Percent Loan and Muthoot Delight Loan. Alongside gold loans, the company provides diverse financial services including money transfer, microfinance, and insurance.

As a prominent player in the gold financing sector, Muthoot Finance Limited caters to a wide array of financial needs beyond just gold loans. Its comprehensive offerings extend to services like money transfers, microfinance, home loans, and insurance. Through its diversified portfolio, the company aims to meet the varied financial requirements of its customers, ensuring convenience and accessibility to financial solutions.

Mahindra and Mahindra Financial Services Ltd

The market capitalization of Mahindra and Mahindra Financial Services Ltd is ₹35,547.59 crore. Its monthly return stands at 10.49%, while its one-year return is 10.97%. Currently, the stock is 20.33% away from its 52-week high.

Mahindra & Mahindra Financial Services Limited operates as a non-banking financial company (NBFC), specializing in asset finance through its extensive branch network. Its Financing activities segment focuses on financing and leasing various vehicles, including automobiles, tractors, and commercial vehicles, along with housing finance. The company also offers insurance broking, asset management, and trusteeship services to cater to diverse financial needs.

The company extends its financial services to both new and pre-owned vehicles, covering a wide range from automobiles to utility vehicles, catering to individual customers and small and medium enterprises. Additionally, it provides housing finance, personal loans, and mutual fund distribution services. Mahindra & Mahindra Financial Services serves a broad customer base, including transport operators, farmers, and self-employed individuals, offering wholesale inventory financing to dealers and retail financing to customers in the United States.

Manappuram Finance Ltd

The market capitalization of Manappuram Finance Ltd is ₹15,984.92 crore. Its monthly return stands at 47.83%, while its one-year return is 12.79%. Currently, the stock is 7.20% away from its 52-week high.

Manappuram Finance Limited, an Indian NBFC, specializes in providing credit services to the economically disadvantaged, primarily in rural and semi-urban regions. Its operations span various segments, including gold loans, microfinance, and retail credit products. The company maintains a diverse lending portfolio catering to retail, SMEs, and commercial customers, offering services such as online gold loans, business loans, and micro-home finance.

Focused on serving underprivileged communities, Manappuram Finance Limited extends a wide array of financial solutions, including income-generating program loans and loans tailored for small and medium-sized enterprises. Its comprehensive product offerings encompass gold loans, personal loans, vehicle loans, and money transfer services, reflecting its commitment to empowering individuals and supporting small-scale industries.

Capital Trust Ltd

The market capitalization of Capital Trust Ltd is ₹184.72 crore. Its monthly return stands at 71.02%, while its one-year return is 8.86%. Currently, the stock is 29.76% away from its 52-week high.

Capital Trust Limited, an Indian NBFC, specializes in providing loans to small and micro enterprises. Operating in the financing segment, it focuses on rural financing digitalization, offering retail financing for two-wheelers, consumer durables, and office equipment. Additionally, it provides microfinance and enterprise loans, including unsecured business and personal loans. The company employs automated credit analysis and offers various services like QR code scanning for credit checks and cloud backup.

With a network of around 350 branches, Capital Trust Limited ensures accessibility and convenience for its customers. It emphasizes digitalization in rural financing, utilizing technologies like QR code scanning and cloud backup. Offering a range of services such as automated credit analysis and risk assessment, the company aims to provide efficient and reliable financial solutions to small and micro enterprises.

Transcorp International Ltd

The market capitalization of Transcorp International Ltd is ₹129.35 crore. Its monthly return stands at 31.59%, while its one-year return is 20.26%. Currently, the stock is 19.66% away from its 52-week high.

Transcorp International Limited, an Indian firm, primarily offers financial services such as money changing and money transfer. Its operations focus on the Foreign Exchange and Remittance segment. The company provides a range of services like family maintenance, NRE Repatriation, prepaid cards, and travelers’ cheques in collaboration with leading banks. Additionally, it serves as an extension to SBI branches, facilitating various banking transactions for customers.

The company’s services extend to facilitating savings account operations, deposits, withdrawals, bank statements, and money transfers. Through its association with leading banks and partnerships, Transcorp International offers a diverse range of financial solutions to cater to the needs of its customers, ensuring convenience and efficiency in financial transactions.

Sakthi Finance Ltd

The market capitalization of Sakthi Finance Ltd is ₹94.50 crore. Its monthly return stands at 85.15%, while its one-year return is 1.86%. Currently, the stock is 82.05% away from its 52-week high.

Sakthi Finance Limited operates as a deposit-taking non-banking financial company (NBFC) specializing in hire purchase and financing commercial vehicles, infrastructure equipment, and machinery. It primarily serves the asset financing segment, particularly focusing on pre-owned commercial vehicles. The company extends its services to rural and semi-urban areas, primarily in southern India, with a network of 51 branches across Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana, and the Union Territory of Puducherry.

With a core focus on catering to small and medium road transport operators (SRTOs / MRTOs), Sakthi Finance Limited offers fixed deposit schemes through its authorized distributor, Sakthi Financial Services. Additionally, it provides financing solutions for infrastructure construction equipment, multi-utility vehicles, cars, jeeps, and other machinery to meet diverse customer needs in the transportation and infrastructure sectors.

Haryana Capfin Ltd

The market capitalization of Haryana Capfin Ltd is ₹89.86 crore. Its monthly return stands at 237.18%, while its one-year return is 0.32%. Currently, the stock is 15.30% away from its 52-week high.

Haryana Capfin Limited, an Indian non-banking financial company (NBFC), primarily functions as a holding company, with investments in its subsidiaries, associates, and other group entities. These entities operate across various financial service sectors. 

The company operates within a single segment focused on investment and financing, primarily involving investments in shares and securities, as well as providing financing services.

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Consumer Finance Stocks With High Dividend – FAQs

Which Are The Best Consumer Finance Stocks With High Dividend Yield?

Best Consumer Finance Stocks With High Dividend Yield #1: Shriram Finance Ltd
Best Consumer Finance Stocks With High Dividend Yield #2: Muthoot Finance Ltd
Best Consumer Finance Stocks With High Dividend Yield #3: Mahindra and Mahindra Financial Services Ltd
Best Consumer Finance Stocks With High Dividend Yield #4: Manappuram Finance Ltd
Best Consumer Finance Stocks With High Dividend Yield #5: Capital Trust Ltd

The Top Best Consumer Finance Stocks With High Dividend Yield based on market capitalization.

What Are The Top Consumer Finance Stocks With High Dividend Yield?

Some top consumer finance stocks with high dividend yields include Shriram Finance Ltd, Muthoot Finance Ltd, Mahindra and Mahindra Financial Services Ltd, Manappuram Finance Ltd, and Capital Trust Ltd. These companies offer opportunities for dividend income in the consumer finance sector.

Can I Invest In Consumer Finance Stocks With High Dividend Yield?

Yes, investing in consumer finance stocks with high dividend yields can be a viable strategy for income-oriented investors. Look for companies with strong fundamentals, stable cash flows, and a history of paying consistent dividends. Examples include credit card companies, mortgage lenders, and consumer loan providers.

Is It Good To Invest In Consumer Finance Stocks With High Dividend Yield?

Investing in consumer finance stocks with high dividend yields can be beneficial for income-oriented investors seeking steady returns. However, it’s essential to consider factors like economic conditions, regulatory changes, and company performance to ensure dividend sustainability. Diversification across sectors is also crucial to manage risks effectively.

How To Invest In Consumer Finance Stocks With High Dividend Yield?

To invest in consumer finance stocks with high dividend yields, research companies with strong financials and a history of consistent dividends. Utilize online brokerage platforms to purchase shares or consider investing in dividend-focused exchange-traded funds (ETFs). Monitor economic trends and regulatory changes that may impact the consumer finance sector.

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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