High Dividend Yield Pharma Stocks under Rs 500

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

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

High dividend yield pharma stocks under ₹500 refer to pharmaceutical companies that offer substantial dividend payouts relative to their share price, making them attractive to investors seeking regular income. These stocks are priced affordably, allowing investors to gain exposure to the pharmaceutical sector while benefiting from steady dividends.  

Features Of High Dividend Yield Pharma Stocks under Rs 500

The feature of high dividend yield pharma stocks under Rs 500 is that they provide an affordable entry point for income-focused investors, offering attractive dividend returns while being accessible to a broader range of investors.

1. Steady Earnings: These pharma companies often have consistent earnings, allowing them to distribute regular dividends.
2. Affordable Pricing: Stocks priced under Rs 500 are accessible, making them appealing to retail investors seeking income.
3. Industry Stability: The pharma sector is known for its resilience, offering a steady stream of dividends even in volatile markets.
4. Growth Potential: Despite their high dividends, many of these stocks still have room for growth in share price.
5. Defensive Play: Pharma stocks are often considered defensive, performing well during economic downturns, and ensuring sustained dividends.

Best High Dividend Yield Pharma Stocks under ₹500

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

Top High Dividend Yield Pharma Stocks under Rs 500 in India

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

Factors To Consider When Investing In High Dividend Yield Pharma Stocks under ₹500

The factors to consider when investing in high dividend yield pharma stocks under ₹500 include assessing the company’s product portfolio and pipeline.  

1. Dividend Consistency: Evaluate the company’s history of dividend payments. Consistent and growing dividends over the years indicate financial stability and a commitment to rewarding shareholders.
2. Regulatory Approvals: Consider the company’s track record in securing regulatory approvals for its drugs. Successful approvals can lead to increased revenues, supporting higher dividend payouts.
3. R&D Investment: Assess the company’s investment in research and development (R&D). A strong R&D pipeline indicates potential for future growth, which can sustain and increase dividend payments.
4. Patent Expiry: Be aware of the patent expiry dates for key drugs in the company’s portfolio. Expiring patents can lead to revenue declines, affecting the company’s ability to pay dividends.
5. Debt Levels: Evaluate the company’s debt-to-equity ratio. High debt levels can strain the company’s finances, reducing its ability to maintain dividend payments, especially in a capital-intensive industry like pharmaceuticals.
6. Market Demand: Analyze the demand for the company’s products, particularly in essential or high-demand therapeutic areas. Strong market demand supports stable revenues and consistent dividend payments.

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

To invest in high dividend yield pharma stocks under ₹500, start by researching potential stocks that meet your investment criteria. Open a trading and Demat account with a reputable brokerage firm, such as Alice Blue. Once your account is set up, analyze the financial health, product pipeline, and dividend history of the stocks you’re interested in. Make your investment decisions based on your risk tolerance and investment goals.

Advantages Of Investing In High Dividend Yield Pharma Stocks Under 500

The primary advantage of investing in high dividend yield pharma stocks under ₹500 is the potential for consistent income.  

1. Affordable Entry Point: With a price under ₹500, these stocks offer an accessible investment option for a wide range of investors, allowing you to build a diversified portfolio without a significant initial outlay.
2. Defensive Investment: The pharmaceutical sector is often considered defensive, as it is less affected by economic downturns. This can provide stability and consistent dividends, even during challenging economic times.
3. Steady Income: High dividend yield pharma stocks can provide a steady and reliable income stream through regular dividend payments, making them attractive for long-term investors seeking passive income.
4. Growth Potential: Besides earning dividends, these stocks may also offer capital appreciation, especially if the company has a strong R&D pipeline and successful product launches.
5. Reinvestment Opportunities: Dividends received can be reinvested into additional shares, allowing for compounding returns and enhancing the overall growth of your investment portfolio over time.

Risks Of Investing In High Dividend Yield Pharma Stocks Under 500

The main risk of investing in high dividend yield pharma stocks under ₹500 is the potential for dividend cuts or suspensions.  

1. Regulatory Risks: The pharmaceutical industry is highly regulated, and changes in regulations or delays in drug approvals can negatively impact a company’s profitability and ability to maintain dividend payments.
2. Patent Expirations: As patents on key drugs expire, generic competition can significantly reduce revenues, potentially leading to lower dividends or dividend cuts.
3. Market Competition: The pharma sector is highly competitive, with many companies vying for market share. Intense competition can pressure margins and reduce profitability, affecting dividend sustainability.
4. R&D Failures: High R&D investments do not always result in successful products. Failures in the pipeline can lead to financial losses, impacting the company’s ability to pay dividends.
5. Economic Sensitivity: Although the pharma sector is generally defensive, it is not immune to economic downturns. Reduced healthcare spending or pricing pressures can negatively affect revenues and dividends.

Introduction to High Dividend Yield Pharma Stocks under ₹500

Alembic Ltd

The Market Cap of Alembic Ltd is Rs. 3,769.56 crores. The stock’s monthly return is 26.93%. Its one-year return is 70.51%. The stock is 13.50% away from its 52-week high.

Alembic Limited, an India-based company, focuses on developing, manufacturing, and marketing pharmaceutical products, including formulations and active pharmaceutical ingredients. 

The company operates within the Pharmaceuticals segment, with activities centred on producing and promoting active pharmaceutical ingredients derived from fermentation and chemistry. Additionally, Alembic Limited conducts research and development at its location in Vadodara.  

Kopran Ltd

The Market Cap of Kopran Ltd is Rs. 1232.26 crore. The stock’s monthly return is 1.67%. Its one-year return is 34.23%. The stock is 19.84% away from its 52-week high.

Kopran Limited is a pharmaceutical company based in India, known for its diverse range of products. Specializing in both formulation manufacturing and active pharmaceutical ingredients (APIs), the company offers a variety of penicillin-based and non-penicillin-based oral dosage forms. 

Their formulations cover categories such as anti-infective, amoxicillin, ampicillin, cloxacillin, amoxy clav, as well as macrolides, anti-hypertensive, antihistamine, anti-diabetic, pain management, and gastroenterology products. Kopran Limited supplies ingredients for various pharmaceutical forms like capsules, injectables, and tablets.  

Anuh Pharma Ltd

The Market Cap of Anuh Pharma Ltd is Rs. 1184.65 crores. The stock’s monthly return is 2.78%. Its one-year return is 70.18%. The stock is 15.19% away from its 52-week high.

Anuh Pharma Limited is an Indian company that specializes in the manufacturing of bulk drugs. The company’s primary focus is on producing active pharmaceutical ingredients (API). 

Anuh Pharma Limited manufactures a variety of products including Macrolides, Anti-TB medications, Anti-Bacterials, Anti-Malarials, Anti-Hypertension drugs, expectorants, and corticosteroids. Some of its macrolide products include Erythromycin, Azithromycin, and other derivatives. The company also offers Anti-TB medications such as Pyrazinamide and Isoniazid, Anti-Malarials like Sulfadoxine and Pyrimethamine, and Anti-Bacterials including Chloramphenicol. 

Jagsonpal Pharmaceuticals Ltd

The market cap of Jagsonpal Pharmaceuticals Ltd is Rs. 1013.44 crores. The stock’s monthly return is 14.30%. Its one-year return is -18.27%. The stock is 37.07% away from its 52-week high.

Jagsonpal Pharmaceuticals Limited, based in India, specializes in the manufacturing and trading of pharmaceutical products and active pharmaceutical ingredients (APIs). Among its range of formulation products are Divatrone, Maintane 500 injection, Indocap capsules, Metadec 50 injection, and others. 

The company also offers OTC products like Ringcuter Cream and Skin Lumia Soap, as well as Naari products including Endoreg, Yuliprist, and Verena. Its other offerings include Lycored Softgels, JP Tone Syrup, and Doxypal DR-L.  

BDH Industries Ltd

The Market Cap of BDH Industries Ltd is Rs. 219.47 crore. The stock’s monthly return is 11.30%. Its one-year return is 61.81%. The stock is 14.59% away from its 52-week high.

BDH Industries Limited manufactures pharmaceutical products including therapeutic formulations in various oral solid dosages (OSD) technologies. 

The company offers a wide range of products across different therapeutic classes such as antifungal, antibiotics, anticancer, anti-diabetic, antidepressant, anti-ulcerate, antimalarial, non-steroidal anti-inflammatory drugs, psychotropic, trichology, as well as vitamins and minerals. Noteworthy specialty formulations offered by the company include Morphine Sulphate Slow-Release Tablets 15mg, and Sulfasalazine Delayed-release tablets U.S.P. 500mg.

Top High Dividend Yield Pharma Stocks under Rs 500 – FAQs

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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.