High Dividend Yield Plastic Stocks under Rs 500

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

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

High dividend yield plastic stocks under ₹500 refer to companies in the plastics industry that offer significant dividend payouts relative to their share price. These stocks are attractive to investors who seek regular income through dividends while investing in an affordable segment of the market.

Features Of High Dividend Yield Plastic Stocks under ₹500

The feature of high dividend yield plastic stocks under ₹500 is that they offer an affordable investment opportunity with attractive dividend returns, appealing to investors looking for both income and potential capital appreciation.

1. Consistent Cash Flow: These companies often generate stable cash flows, enabling them to maintain regular dividend payouts.
2. Affordable Investment: Priced under ₹500, these stocks are accessible to a wide range of investors seeking dividend income.
3. Sector Growth: The plastic industry has steady demand, contributing to the companies’ ability to distribute high dividends.
4. Defensive Nature: Plastic stocks tend to perform well in various market conditions, ensuring consistent dividend payments.
5. Potential for Upside: Along with dividends, these stocks have the potential for price appreciation, offering growth opportunities.

Best High Dividend Yield Plastic Stocks under Rs 500

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

Top High Dividend Yield Plastic Stocks under Rs 500 in India

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

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

The factors to consider when investing in high dividend yield plastic stocks under ₹500 include evaluating the company’s market position and operational efficiency. 

1. Dividend Consistency: Examine the company’s history of dividend payments. A consistent track record indicates financial stability and the company’s commitment to sharing profits with shareholders.
2. Raw Material Costs: Assess the impact of raw material costs on the company’s profitability. As plastic production is sensitive to fluctuations in crude oil prices, managing these costs is crucial for maintaining dividends.
3. Environmental Regulations: Consider the impact of environmental regulations on the company. Stricter regulations may increase costs or limit operations, potentially affecting profitability and dividend sustainability.
4. Market Demand: Analyze the demand for plastic products. Companies serving growing or stable markets are more likely to maintain or increase dividends due to consistent cash flows.
5. Debt Levels: Evaluate the company’s debt levels. High debt can strain financial resources, reducing the ability to pay dividends, especially in a low-margin industry like plastics.

How To Invest In High Dividend Yield Plastic Stocks under 500?

To invest in high dividend yield plastic stocks under ₹500, start by researching and identifying potential stocks that fit your investment criteria. Next, open a trading and Demat account with a reliable broker, such as Alice Blue. Once your account is active, analyze the stocks’ financial health, market position, and dividend history before making your investment.  

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

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

1. Affordable Entry Point: With a price under ₹500, these stocks are accessible to a broad range of investors, allowing you to build a portfolio without requiring a large initial investment.
2. Steady Income Stream: High dividend yield plastic stocks can provide a steady income stream, especially if the company has a stable and reliable dividend history, adding a layer of financial security to your portfolio.
3. Potential for Growth: Besides earning dividends, these stocks have the potential for capital appreciation, particularly if the company operates in growing markets or introduces innovative products.
4. Reinvestment Opportunities: Dividends received can be reinvested into purchasing additional shares, allowing for compounding returns over time, which can significantly enhance the overall value of your investment.
5. Defensive Play: Companies in the plastics industry often have a diverse range of products, serving various sectors. This diversity can provide stability during economic downturns, making them a more defensive investment.

Risks Of Investing In High-Dividend Yield Plastic Stocks Under 500

The main risk of investing in high dividend yield plastic stocks under ₹500 is the potential for dividend cuts or suspensions. If a company faces financial challenges, it may reduce or eliminate dividends, impacting your expected income.

1. Raw Material Volatility: The cost of raw materials, especially petroleum-based inputs, can be volatile, directly affecting the company’s profitability and its ability to maintain dividend payments.
2. Regulatory Challenges: The plastics industry is subject to increasing environmental regulations, which can raise costs or limit operations, potentially reducing profitability and dividends.
3. Market Competition: The plastics industry is highly competitive, and companies that fail to innovate or maintain cost efficiencies may lose market share, impacting their financial health and dividend-paying ability.
4. Economic Cycles: The demand for plastic products can be cyclical, depending on the economic environment. During downturns, companies may experience reduced sales and profits, leading to lower dividends.
5. Technological Disruption: Advances in technology or shifts towards more sustainable materials could disrupt the traditional plastics market, negatively affecting companies that are slow to adapt and, consequently, their ability to pay dividends.

Introduction to High Dividend Yield Plastic Stocks under ₹500

Time Technoplast Ltd

The Market Cap of Time Technoplast Ltd is Rs. 7524.97 crores. The stock’s monthly return is -0.08%. Its one-year return is 126.31%. The stock is 14.21% away from its 52-week high.

Time Technoplast Limited is an India-based company with a global presence, specializing in the manufacture of technology-based polymer and composite products. 

The company’s wide range of offerings includes large plastic drums, composite cylinders, and intermediate bulk containers. Its business is divided into segments focusing on Polymer Products and Composite Products, with manufacturing facilities situated at approximately 30 locations worldwide, including 20 within India.  

TPL Plastech Ltd

The Market Cap of TPL Plastech Ltd is Rs. 914.27 crore. The stock’s monthly return is 19.60%. Its one-year return is 153.62%. The stock is 22.15% away from its 52-week high.

TPL Plastech Limited, an India-based company, specializes in the manufacturing of drums for bulk packaging. The company’s operations are solely based in India and its product range includes various polymer products. 

Their portfolio consists of Narrow Mouth Drums, Narrow Mouth and Wide Mouth Carboys, Open Top Drums for bulk and medium packaging, QuBC and COBO IBC, and Small Packs. The Narrow Mouth Drums range from 210 to 250 litres in capacity, while the Narrow Mouth, Wide Mouth, and Open Top Drums range from 25 to 250 litres.  

Signet Industries Ltd

The Market Cap of Signet Industries Ltd is Rs. 233.20 crores. The stock’s monthly return is -8.70%. Its one-year return is 72.14%. The stock is 26.66% away from its 52-week high.

Signet Industries Limited is involved in the merchant trading of various polymers and other products, as well as the production of micro irrigation systems (DRIP), sprinkler pipe / polyvinyl chloride (PVC) pipe, Agro fittings, household items, and plastic moulded furniture. 

The company operates across three segments: Manufacturing, Wind Power Units, and Trading. Within the Manufacturing segment, the focus is on the production of irrigation and plastic goods. The Wind Power Unit segment deals with wind turbine power units, while the Trading segment is responsible for merchant trading of diverse products.  

Top High Dividend Yield Plastic 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.