High Dividend Yield Paper Stocks under Rs 500

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

What Are The High Dividend Yield Paper Stocks under 500?

High dividend yield paper stocks under ₹500 refer to shares of companies within the paper manufacturing sector that provide significant dividend payouts relative to their share price. The paper sector includes companies involved in producing various paper products, including packaging materials, writing and printing paper, and specialty papers. This sector plays a crucial role in supporting industries like packaging, education, and publishing.

Features Of High Dividend Yield Paper Stocks under ₹500

The feature of high dividend yield paper stocks under ₹500 is their ability to offer consistent dividend income while being affordably priced, making them attractive to investors seeking both income and exposure to the paper and packaging sector.

1. Affordability: Priced under ₹500, these paper stocks are accessible to a wide range of investors, allowing even those with smaller capital to invest in the sector.
2. Attractive Dividend Yields: These stocks typically offer high dividend yields, providing a steady income stream, which is particularly appealing during uncertain market conditions.
3. Steady Demand: The consistent demand for paper products, including packaging, printing, and hygiene products, supports the stability of these companies, enabling regular dividend payouts.
4. Sustainable Growth: With increasing awareness of environmental sustainability, many paper companies are expanding into eco-friendly products, offering both growth potential and continued dividends.
5. Resilient Industry: The paper industry tends to be less sensitive to economic downturns, as demand for essential products like packaging and tissue paper remains steady, helping companies maintain their dividend-paying capacity.

Best High Dividend Yield Paper Stocks under 500

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

Top High Dividend Yield Paper Stocks under Rs 500 in India

The table below shows the top high dividend yield paper stocks under Rs 500 in India based on 1-Year Return. 

Factors To Consider When Investing In High Dividend Yield Paper Stocks Under 500

The factors to consider when investing in high dividend yield paper stocks under Rs.500 include evaluating the company’s raw material sourcing strategies, and ensuring that they have a stable and cost-effective supply chain, which is crucial for maintaining profitability and consistent dividend payouts.

1. Financial Health: Analyze the company’s profitability, debt levels, and cash flow to ensure it has the financial stability to sustain high dividend yields over time.
2. Market Demand: Consider the overall demand for paper products, including trends in digitalization and sustainable practices, which can impact the company’s revenue and dividend potential.
3. Cost Management: Assess how well the company manages production costs, particularly in sourcing raw materials like pulp, as this directly affects profitability and dividend capacity.
4. Environmental Regulations: Understand the impact of environmental laws and regulations on the company, as compliance costs can affect profitability and, subsequently, dividend payments.
5. Valuation: Evaluate the stock’s price-to-earnings (P/E) ratio and dividend yield to ensure the stock is reasonably priced, providing a good balance of income and growth potential.

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

Investing in high dividend yield paper stocks under ₹500 involves identifying companies with strong financials, effective cost management, and a stable demand outlook. Platforms like AliceBlue can be used to open a Demat account. Perform thorough research on the paper industry, focusing on companies with a consistent dividend history and reasonable valuations.

Advantages Of Investing In High Dividend Yield Paper Stocks under ₹500

The primary advantage of investing in high dividend yield paper stocks under Rs 500 is the potential for consistent income, as high dividend yields in the paper industry provide steady returns, especially in an essential sector with ongoing demand.

1. Stable Cash Flows: Paper companies often have steady cash flows due to consistent demand for products like packaging materials, supporting reliable dividend payouts.
2. Affordable Entry: Stocks under ₹500 allow investors to accumulate more shares, increasing the potential returns from both dividends and price appreciation.
3. Dividend Reinvestment: Reinvesting dividends can lead to compounding returns over time, enhancing overall investment performance in the paper industry.
4. Sector Essentiality: The paper sector’s essential nature, especially in packaging and hygiene products, offers a degree of stability, supporting long-term dividends.
5. Hedge Against Inflation: Paper products often have a stable demand, and companies may pass on rising costs to consumers, making them relatively resilient in inflationary environments.

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

The main risk of investing in high dividend yield paper stocks under Rs 500 is fluctuating raw material costs, which can impact profit margins and lead to reduced dividend payments if the company cannot pass these costs onto consumers.

1. Cyclical Demand: The paper industry can be cyclical, with demand affected by economic downturns, which can lead to fluctuations in revenue and dividend payments.
2. Environmental Costs: Compliance with stringent environmental regulations can increase operational costs, potentially impacting profitability and dividend sustainability.
3. Commodity Price Volatility: The cost of raw materials, such as wood pulp, can be volatile, affecting the company’s margins and its ability to maintain high dividend yields.
4. Technological Disruption: Increasing digitalization and the move toward paperless offices can reduce demand for traditional paper products, impacting long-term revenue and dividends.
5. Competitive Pressure: The paper industry is highly competitive, with companies constantly striving to reduce costs and maintain market share, which can pressure profit margins and dividend payouts.

Introduction to High Dividend Yield Paper Stocks under Rs 500 

JK Paper Ltd

The Market Cap of JK Paper Ltd is Rs. 8426.92 crores. The stock’s monthly return is -16.08%. Its one-year return is 41.01%. The stock is 35.59% away from its 52-week high.

JK Paper Limited, an India-based company, specializes in the production of papers and paper boards. The company offers a wide range of products including office documentation papers, uncoated paper & board, coated paper & board, and packaging board. 

Their office documentation papers cater to various needs, ranging from economy to premium grades, and include photocopy and multi-purpose papers suitable for desktop, inkjet and laser printers, fax machines, photocopiers, and multifunctional devices. The company also provides uncoated writing & printing paper options such as the super bright JK Maplitho.  

Seshasayee Paper and Boards Ltd

The Market Cap of Seshasayee Paper and Boards Ltd is Rs. 2208.02 crore. The stock’s monthly return is -2.66%. Its one-year return is 28.02%. The stock is 23.10% away from its 52-week high.

Seshasayee Paper and Boards Limited is an Indian company operating in the manufacturing and sale of paper and paper boards. The company specializes in producing printing and writing paper at its plants located in Erode and Tirunelveli, with a combined capacity of around 255,000 tons per year. 

Their product line includes various types such as Color Sprint, Azurelaid, Azurewove, Creamlaid, Parchment Paper, MF Base Board, Diary Paper, Index Paper, Plain Paper, MG Poster, MG Ribbed Kraft, and Plain Poster.

Tamilnadu Newsprint & Papers Ltd

The Market Cap of Tamilnadu Newsprint & Papers Ltd is Rs. 1746.88 crores. The stock’s monthly return is -12.13%. Its one-year return is 13.89%. The stock is 36.58% away from its 52-week high.

Tamilnadu Newsprint and Papers Limited, an India-based company, is involved in the manufacturing and marketing of paper, paper boards, cement, and power generation. The company has two key segments: Paper and Paper Board, and Energy. 

In the Paper and Paper Board segment, the company manufactures and sells various types of paper and paper board products. The Energy segment focuses on power generation through turbo generators (TGs) and windmills for both internal use and export. The company also produces and sells cement.   

Ruchira Papers Ltd

The Market Cap of Ruchira Papers Ltd is Rs. 402.43 crore. The stock’s monthly return is -5.56%. Its one-year return is 14.67%. The stock is 25.99% away from its 52-week high.

Ruchira Papers Limited is an Indian company that focuses on manufacturing paper products. The company produces Kraft Paper and Writing & Printing Paper. Kraft Paper is made from recycled paper and agricultural residues like Bagasse, wheat straw, and sarkanda. 

Writing and Printing Paper is created using agricultural residues such as wheat straw, Bagasse, sarkanda, Softwood Pulp, and other additives. The Writing and Printing Paper is commonly used in various products like notebooks, wedding cards, and coloring books. The company also produces copier paper.  

Shreyans Industries Ltd

The Market Cap of Shreyans Industries Ltd is Rs. 396.92 crore. The stock’s monthly return is 4.82%. Its one-year return is 30.60%. The stock is 26.14% away from its 52-week high.

Shreyans Industries Limited, an India-based company, specializes in the production of writing and printing paper. The company serves both domestic and international markets through its manufacturing plants, Shreyans Papers, and Shree Rishabh Papers. 

Their product range includes a variety of paper types such as high brightness paper, cream wove, colored paper, duplicating paper, and more. These products are offered in different grades, ranging from 44 GSM to 200 GSM.  

Star Paper Mills Ltd

The Market Cap of Star Paper Mills Ltd is Rs. 377.97 crore. The stock’s monthly return is -9.47%. Its one-year return is 38.11%. The stock is 21.31% away from its 52-week high.

Star Paper Mills Limited, an India-based company, specializes in the production and distribution of paper and paperboard products. The company offers a wide range of industrial packaging and cultural paper for various consumer segments. 

Its product line includes cultural paper for printing, envelope production, security paper printing, copying, card making, and children’s scrapbooks. Additionally, the company supplies industrial papers for applications such as carry bags, soap wrappers, tobacco packaging, coated wrappers, cooler pads, laminates, battery jackets, and grocery bags.  

B & A Packaging India Ltd

The Market Cap of B & A Packaging India Ltd is Rs. 141.67 crore. The stock’s monthly return is 0.92%. Its one-year return is 41.31%. The stock is 18.63% away from its 52-week high.

B & A Packaging India Limited, an India-based company, focuses on manufacturing and selling paper sacks and flexible laminates under the brand bagage. 

The company operates in two segments: Paper Sacks and Flexible Laminates. Its product range includes multiwall sacks, printed laminates, and plastic pouches, including valved sacks, open-mouth sacks, pinch-bottom sacks, sewn sacks, and reinforced sacks.  

Top High Dividend Yield Paper 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.