High Dividend Yield Iron & Steel Stocks under Rs 500

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

What Are The High Dividend Yield Iron & Steel Stocks under ₹500?

High dividend yield iron & steel stocks under ₹500 refer to companies within the iron and steel sector that offer substantial dividend payouts relative to their share price. These stocks are attractive to investors looking for regular income through dividends, particularly in a sector known for its cyclical nature.  

Features Of High Dividend Yield Iron & Steel Stocks under Rs 500

The feature of high dividend yield iron & steel stocks under Rs 500 is their ability to offer consistent dividend income while being affordable, making them appealing to investors looking for stable returns in the volatile commodities sector.

1. Affordable Access: These stocks are priced under Rs 500, making them accessible to a wide range of investors, including those with smaller investment portfolios.
2. Attractive Dividend Yields: Iron & steel stocks in this category typically provide high dividend yields, offering a steady income stream, which is particularly attractive during market uncertainties.
3. Strong Demand: The consistent demand for iron and steel in construction, infrastructure, and manufacturing helps these companies maintain stable earnings, supporting regular dividend payouts.
4. Cyclical Growth Potential: While providing dividends, these stocks also have the potential for capital appreciation, especially during periods of economic growth when demand for steel products increases.
5. Global Market Exposure: Many iron & steel companies have a presence in international markets, allowing them to benefit from global demand trends and further support their dividend-paying capacity.

Best High Dividend Yield Iron & Steel Stocks under Rs 500

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

Top High Dividend Yield Iron & Steel Stocks under ₹500 in India

The table below shows the top high dividend yield iron & steel stocks under ₹500 in India based on 1 Year Return. 

Factors To Consider When Investing In High Dividend Yield Iron & Steel Stocks under Rs 500

The Factors To Consider When Investing In High Dividend Yield Iron & Steel Stocks under Rs 500, it is crucial to examine the company’s historical dividend performance, ensuring a reliable payout history.

1. Commodity Prices: Iron and steel companies are heavily influenced by global commodity prices. Understand how fluctuations in steel prices impact the company’s revenue and, consequently, its ability to pay dividends.
2. Economic Cyclicality: The iron and steel industry is cyclical, with performance closely tied to the broader economy. Consider the current economic cycle, as dividends may be less reliable during downturns.
3. Production Costs: Evaluate the company’s production efficiency and cost management. Firms with lower production costs are better positioned to maintain profitability and sustain dividend payouts, even in competitive markets.
4. Government Policies: Review the impact of government regulations, tariffs, and subsidies on the iron and steel sector. Policy changes can significantly affect profitability and dividend yields.
5. Debt Levels: High debt levels can strain a company’s finances, particularly in a capital-intensive industry like iron and steel. Assess the debt-to-equity ratio to determine if the company can sustain its dividend payments.

How To Invest In High Dividend Yield Iron & Steel Stocks under 500?

To invest in high dividend yield iron & steel stocks under Rs 500, start by identifying companies with a strong dividend history and solid financial health. Open a trading account with a reliable broker like Alice Blue, and research the stock’s fundamentals, including production costs, market position, and economic outlook.  

Advantages Of Investing In High Dividend Yield Iron & Steel Stocks under Rs 500

The primary advantage of investing in these stocks is the potential for steady income through regular dividend payments.

1. Affordable Entry: Stocks priced under Rs 500 allow investors to enter the iron and steel sector at a lower cost, enabling diversification across multiple stocks within the sector, even with limited capital.
2. Income Generation: High dividend yields offer a consistent income stream, which is particularly attractive for income-focused investors seeking to supplement their earnings or reinvest for compounding returns.
3. Sector Resilience: The iron and steel industry is fundamental to infrastructure and manufacturing, often showing resilience during economic recoveries, which can lead to stable or even increasing dividend payouts.
4. Inflation Hedge: Iron and steel stocks can act as a hedge against inflation, as commodity prices often rise with inflation, potentially leading to higher revenues and dividend payments.
5. Growth Potential: Despite being high dividend payers, many iron and steel companies also have significant growth potential, especially during periods of industrial expansion or increased infrastructure spending.

Risks Of Investing In High Dividend Yield Iron & Steel Stocks Under 500

The main risk is the high volatility in the iron and steel industry, driven by fluctuating commodity prices and economic cycles, which can lead to unstable stock prices and dividend cuts.

1. Commodity Price Volatility: Iron and steel stocks are highly sensitive to changes in commodity prices. A sharp decline in steel prices can significantly reduce the company’s profitability and its ability to maintain dividend payouts.
2. Economic Downturns: The cyclical nature of the industry means that during economic downturns, steel demand can decrease sharply, leading to reduced revenues and potential dividend cuts.
3. High Capital Expenditure: The iron and steel industry requires significant capital investment, which can strain cash flow and limit the funds available for dividend payments, particularly if profits decline.
4. Regulatory Risks: Changes in government policies, environmental regulations, and trade tariffs can have a substantial impact on the iron and steel industry, potentially affecting profitability and dividend sustainability.
5. Debt Burden: Companies with high levels of debt may struggle to meet their financial obligations during tough economic times, leading to potential dividend reductions or suspensions to preserve cash.

Introduction to High Dividend Yield Iron & Steel Stocks under ₹500

Tata Steel Ltd

The Market Cap of Tata Steel Ltd is Rs. 197,514.44 crore. The stock’s monthly return is -9.76%. Its one-year return is 26.06%. The stock is 23.21% away from its 52-week high.

Tata Steel Limited is an Indian global steel company with an annual crude steel capacity of around 35 million tons. The company’s main focus is on manufacturing and distributing steel products worldwide. 

Tata Steel and its subsidiaries cover various aspects of the steel production process, starting from mining and refining iron ore and coal to the distribution of finished goods. Their product range includes various types of steel such as cold-rolled, BP sheets, Galvano, HR commercial, hot-rolled pickled and oiled, and high tensile steel strapping, among others.  

Steel Authority of India Ltd

The Market Cap of Steel Authority of India Ltd is Rs. 60,400.67 crores. The stock’s monthly return is -3.20%. Its one-year return is 45.26%. The stock is 28.35% away from its 52-week high.

The Steel Authority of India Limited, an India-based company, focuses primarily on the production of steel. It manufactures and sells iron and steel products through its business segments comprising five integrated steel plants and three alloy steel plants. 

These plants include the Bhilai Steel Plant in Chhattisgarh, the Durgapur Steel Plant in West Bengal, the IISCO Steel Plant in West Bengal, the Visvesvaraya Iron and Steel Plant in Karnataka and the Chandrapur Ferro Alloy Plant in Maharashtra.

Usha Martin Ltd

The Market Cap of Usha Martin Ltd is Rs. 11,273.93 crores. The stock’s monthly return is -10.64%. Its one-year return is 3.15%. The stock is 22.63% away from its 52-week high.

Usha Martin Limited is a company based in India that specializes in providing steel wire rope solutions. In addition to manufacturing wires, low relaxation prestressed concrete steel strands (LRPC), customized end-fittings, accessories, and related services, the company operates in two main segments: Wire and Wire ropes, and Others. 

The Wire and Wire ropes segment focuses on producing and selling steel wires, strands, wire ropes, cords, accessories, wire drawing equipment, and other related products. Meanwhile, the Others segment specializes in manufacturing and selling jelly-filled and optical fibre telecommunication cables.  

Tinplate Company of India Ltd

The Market Cap of Tinplate Company of India Ltd is Rs. 4505.94 crore. The stock’s monthly return is 1.00%. Its one-year return is 16.68%. The stock is 7.29% away from its 52-week high.

The Tinplate Company of India Limited, an Indian firm, specializes in manufacturing tin-coated and tin-free steel sheets. The company primarily focuses on producing electrolytic tinplate, and selling tinplate products and scrap, among other offerings. 

Their product range includes electrolytic tinplate (ETP), Tin tin-free steel / electro-chromium-coated steel, and Lacquered/Coated Electrolytic Tinplate Sheets. ETP is a mild steel sheet coated with tin on both sides using continuous electrolytic processes, forming a layer of tin iron between the steel base and a shiny tin layer when melted.  

Prakash Industries Ltd

The market cap of Prakash Industries Ltd is Rs. 3410.26 crore. The stock’s monthly return is -6.28%. Its one-year return is 92.18%. The stock is 27.65% away from its 52-week high.

Prakash Industries Limited, an India-based company, is primarily involved in the manufacturing and sales of steel products, power generation, as well as iron ore and coal mining. The company extracts iron ore from the Sirkaguttu Mine in the Keonjhar district of Odisha and operates the Bhskarpara Coal Mine in Chhattisgarh. 

Its product line includes sponge iron, Ferro alloys, steel blooms and billets, TMT Bars, Wire Rods, and HB Wires. Prakash Industries Limited maintains a captive power plant at its Integrated Steel Plant, utilizing Waste Heat Recovery Boilers and Fluidized Bed Boilers to meet power requirements. 

Mukand Ltd

The Market Cap of Mukand Ltd is Rs. 2,579.10 crores. The stock’s monthly return is 6.89%. Its one-year return is -1.99%. The stock is 29.54% away from its 52-week high.

Mukand Limited, an India-based company, specializes in manufacturing special alloy steel and stainless steel products, including billets, bars, rods, and wire rods. 

Additionally, they also produce EOT cranes, material handling equipment, and other industrial machinery. The company operates in three main segments: Specialty Steel, Industrial Machinery and Engineering Contracts and Others. The Specialty Steel segment focuses on billets, blooms, wire rods, bars and other specialized steel and stainless steel products.  

Vardhman Special Steels Ltd

The Market Cap of Vardhman Special Steels Ltd is Rs. 2237.85 crores. The stock’s monthly return is -10.63%. Its one-year return is 42.29%. The stock is 28.89% away from its 52-week high.

Vardhman Special Steels Limited, an India-based company, specializes in manufacturing special and alloy steels. The company produces high-quality billets and hot-rolled bars for various industries including engineering, automotive, tractor, bearing, and related sectors. 

Their product range includes hot rolled, rounded corner square, peeled and reeled bars, peeled and ground bars, drawn and ground bars, and heat treatment bars. Vardhman Special Steels Limited offers a wide variety of steels in different types and sizes, such as Carbon Steel, Carbon Manganese Steel,  and High Titanium Steel.  

Top High Dividend Yield Iron & Steel 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.