High Dividend Yield Gas Stocks under Rs 500

The table below shows the high dividend yield gas stocks under Rs 500 based on the Highest Market Capitalization.

What Are The High Dividend Yield Gas Stocks under Rs 500?

High dividend yield gas stocks under Rs 500 refer to companies in the gas sector with share prices below Rs 500 that offer significant dividend payouts relative to their stock price. These stocks appeal to investors seeking regular income through dividends while investing in the essential energy sector. They are favoured by those looking for affordable investments with the potential for consistent income and stable returns in a critical and growing industry.

Features Of High Dividend Yield Gas Stocks under Rs 500

The main feature of high dividend yield gas stocks under Rs 500 lies in their ability to deliver steady dividend income while offering affordability, making them a compelling choice for income-focused investors in the energy sector.

1. Affordability: Priced under Rs 500, these gas stocks are accessible to a wide range of investors, allowing those with limited capital to participate in the energy sector.
2. Consistent Dividend Payouts: These stocks often provide high dividend yields, offering a reliable income stream for investors, particularly appealing in a volatile market environment.
3. Stable Demand: The consistent demand for gas, both domestically and globally, supports the stability and profitability of these companies, ensuring their ability to maintain dividends.
4. Regulated Pricing Benefits: Many gas companies operate under regulated pricing mechanisms, which can protect earnings and help sustain high dividend payouts even during economic fluctuations.
5. Potential for Growth: Despite their focus on dividends, these stocks also have the potential for capital appreciation, especially as the global energy landscape evolves and demand for gas increases.

Best High Dividend Yield Gas Stocks under Rs 500

The table below shows the best high dividend yield gas stocks under Rs 500 based on the highest day Volume.

Top High Dividend Yield Gas Stocks under Rs 500 in India

The table below shows the top high dividend yield gas stocks under Rs 500 in India based on 1 1-year return. 

Factors To Consider When Investing In High Dividend Yield Gas Stocks under Rs 500

The factors to consider when investing in high dividend yield gas stocks under Rs 500 include the company’s revenue stability. Consistent earnings are crucial for sustaining regular dividend payments.

1. Regulatory Environment: Assess the impact of government regulations and policies on the gas sector, as changes can significantly affect company operations and profitability.
2. Financial Health: Evaluate the company’s balance sheet, focusing on profitability, debt levels, and cash flow, which are vital for maintaining dividend payouts.
3. Market Position: Analyze the company’s position within the gas industry, including its market share and competitive advantages, which influence its ability to generate consistent returns.
4. Dividend History: Investigate the company’s history of dividend payments to ensure a reliable and consistent payout, which reflects management’s commitment to shareholders.
5. Valuation Metrics: Consider the stock’s valuation ratios, such as price-to-earnings (P/E) and price-to-book (P/B) ratios, to determine if the stock is fairly priced and offers potential for appreciation.

How To Invest In High Dividend Yield Gas Stocks under Rs 500?

To invest in high dividend yield gas stocks under Rs 500, start by identifying companies with strong financial fundamentals and a history of consistent dividends. Use an online trading platform like Alice Blue, which provides a user-friendly interface for purchasing these stocks. 

Advantages Of Investing In High Dividend Yield Gas Stocks under Rs 500

The primary advantage of investing in high dividend yield gas stocks under Rs 500 is the potential for generating a steady income stream through dividends.

1. Capital Preservation: These stocks offer an affordable entry point, allowing investors to preserve capital while still benefiting from regular dividend payments.
2. Income Generation: High dividend yields provide a reliable source of income, which can be reinvested or used to supplement other earnings, especially during retirement.
3. Growth Opportunities: Investing in gas stocks under Rs 500 with solid fundamentals allows for potential capital appreciation, enhancing total returns over time.
4. Sector Demand: The gas sector is essential to the economy, ensuring consistent demand and potentially stable performance, which supports ongoing dividend payouts.
5. Portfolio Diversification: Including high dividend yield gas stocks in your portfolio adds diversification, reducing overall investment risk by spreading exposure across different sectors.

Risks Of Investing In High Dividend Yield Gas Stocks under Rs 500

The main risk of investing in high dividend yield gas stocks under Rs 500 is the potential for market volatility, which can lead to sharp fluctuations in stock prices, impacting the value of your investment.

1. Dividend Reductions: Companies may reduce or eliminate dividends during tough economic times or periods of reduced profitability, leading to lower-than-expected returns.
2. Regulatory Risks: The gas industry is heavily regulated, and changes in government policies or environmental regulations can negatively impact company operations and profitability.
3. Economic Sensitivity: Gas companies are often sensitive to economic cycles, where downturns can reduce demand and compress margins, affecting dividend sustainability.
4. Volatility: Stocks under Rs 500 may experience higher volatility, leading to more significant price swings, which can be challenging for risk-averse investors.
5. Liquidity Concerns: Low-priced stocks might suffer from low trading volumes, making it difficult to buy or sell large quantities without affecting the market price.

Introduction to High Dividend Yield Gas Stocks under Rs 500

Gail (India) Ltd

The Market Cap of Gail (India) Ltd is Rs. 155835.96 crore. The stock’s monthly return is 8.45%. Its one-year return is 107.45%. The stock is 9.68% away from its 52-week high.

GAIL (India) Limited is an Indian company that specializes in processing and distributing natural gas. The company operates in different segments, including Transmission Services, Natural Gas Marketing, Petrochemicals, LPG And Liquid Hydrocarbons, and Other services. 

The Transmission Services segment deals with natural gas and liquid petroleum gas (LPG), while the Other segment encompasses City Gas Distribution (CGD), GAIL Tel, exploration and production (E&P), and power generation. Along with sourcing and trading natural gas, the company is involved in producing LPG, liquid hydrocarbons, and petrochemicals, as well as transmitting natural gas and LPG through its extensive pipeline network spanning approximately 14,500 kilometres.  

Gujarat State Petronet Ltd

The Market Cap of Gujarat State Petronet Ltd is Rs. 19321.42 crores. The stock’s monthly return is 11.69%. Its one-year return is 19.66%. The stock is 20.61% away from its 52-week high.

Gujarat State Petronet Limited, an India-based company, operates in the transmission of natural gas through pipelines with open access from supply points to demand centres for end customer distribution. 

The company also focuses on City Gas Distribution, and electricity generation through Windmills. It is involved in developing energy transportation infrastructure to connect natural gas sources, including LNG terminals, to markets. The company serves around 102 customers across various industries such as refineries, steel, fertilizer, petrochemicals, power, glass, textiles, chemicals, and other miscellaneous sectors.

Everest Kanto Cylinder Ltd

The Market Cap of Everest Kanto Cylinder Ltd is Rs. 1948.15 crores. The stock’s monthly return is 22.40%. Its one-year return is 34.12%. The stock is 10.70% away from its 52-week high.

Everest Kanto Cylinder Limited is a company that specializes in providing clean energy solutions. They manufacture seamless steel cylinders and compressed natural gas (CNG) cylinders for storing gases like oxygen, hydrogen, nitrogen, and more at high pressures. 

In addition, they also trade fire extinguishing equipment, castor oil, and related products. Their product portfolio includes a wide range of cylinders for various applications, including industrial, CNG, fire extinguishers, medical use, and more.  

Irm Energy Ltd

The Market Cap of IRM Energy Ltd is Rs. 1850.76 crore. The stock’s monthly return is -4.80%. Its one-year return is -5.13%. The stock is 42.79% away from its 52-week high.

IRM ENERGY LIMITED, a subsidiary of Cadila Pharmaceuticals Ltd., is a forward-thinking energy company dedicated to developing Natural Gas distribution projects nationwide for industrial, commercial, domestic, and automotive purposes. 

The company is focused on meeting the energy requirements of its customers. Cadila Pharmaceuticals Limited (CPL) is the leading entity within the Cadila group, known as one of India’s largest privately owned pharmaceutical companies. CPL offers a comprehensive range of healthcare solutions with a diverse portfolio of over 450 brands and 700 product variations. The company’s global reach spans across ninety countries.  

Top High Dividend Yield Gas Stocks under Rs 500 – FAQs

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.