High Dividend Yield Public Bank Stocks under Rs 500

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

What Are The High Dividend Yield Public Bank Stocks under Rs 500?

High dividend yield public bank stocks under ₹500 refer to shares of public sector banks that offer significant dividend payouts relative to their share price. These stocks are attractive to investors seeking regular income through dividends while investing in government-backed financial institutions. They provide a combination of steady income and potential for capital appreciation, making them appealing for income-focused investors in the banking sector.

Features Of High Dividend Yield Public Bank Stocks under ₹500

The features of high dividend yield public bank stocks under ₹500 often combine affordability with the potential for steady income. These stocks are attractive to investors seeking regular dividends, especially from well-established financial institutions.

1. Consistent Dividend Payments: Public bank stocks typically offer regular and reliable dividend payments, making them an appealing choice for income-focused investors looking for steady returns.
2. Strong Government Backing: Public banks usually have government backing, which adds a layer of security to the investment. This support can make dividend payments more sustainable even in challenging economic conditions.
3. Affordability: Priced under ₹500, these stocks provide an affordable entry point for investors, allowing for diversification without a large initial capital outlay.
4. Stable Earnings: Public banks generally have stable earnings due to their extensive customer base and diversified revenue streams, supporting consistent dividend payouts.
5. Lower Volatility: These stocks often exhibit lower volatility compared to private sector counterparts, as public banks are typically more stable and less exposed to market fluctuations.

Best High Dividend Yield Public Bank Stocks under Rs 500

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

Top High Dividend Yield Public Bank Stocks under ₹500 in India

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

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

The factors to consider when investing in high dividend yield public bank stocks under ₹500 include assessing the bank’s financial stability and dividend history. 

1. Dividend Consistency: Evaluate the bank’s history of dividend payments. A consistent track record indicates financial stability and the bank’s commitment to rewarding shareholders.
2. Asset Quality: Assess the quality of the bank’s loan portfolio. High non-performing assets (NPAs) can strain the bank’s finances and jeopardize future dividend payments.
3. Capital Adequacy Ratio (CAR): Ensure the bank maintains a strong CAR, which measures its ability to absorb potential losses. A higher ratio provides a buffer for dividend sustainability during economic downturns.
4. Government Support: Public banks often have backing from the government, which can provide financial stability and ensure the continuation of dividend payments, even during challenging times.
5. Interest Rate Environment: Consider the current and projected interest rate environment. Rising rates can improve bank profitability, while falling rates may compress margins, potentially impacting dividend payouts. 

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

To invest in high dividend yield public bank stocks under ₹500, start by researching and identifying suitable stocks that meet your investment criteria. Open a Demat account with a reliable brokerage platform, such as Alice Blue. Analyze the financial health, dividend history, and market position of the selected stocks. Once your account is active, you can place buy orders for the stocks you’ve researched. 

Advantages Of Investing In High Dividend Yield Public Bank Stocks Under 500

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

1. Affordable Entry Point: Priced under ₹500, these stocks are accessible to a wide range of investors, allowing you to build a diversified portfolio with minimal initial investment.
2. Government Backing: Public banks often have government support, which adds a layer of financial stability and reduces the risk of dividend cuts during economic downturns.
3. Steady Income Stream: High dividend yield public bank stocks offer a reliable income stream through regular dividend payments, making them suitable for long-term investors seeking passive income.
4. Lower Volatility: Public bank stocks tend to be less volatile than their private counterparts, providing a more stable investment option with consistent dividends.
5. Defensive Investment: Public banks are typically considered defensive investments, as they are less likely to be affected by economic downturns, ensuring stable dividend payments even during challenging times.

Risks Of Investing In High Dividend Yield Public Bank Stocks under ₹500

The main risk of investing in high dividend yield public bank stocks under ₹500 is the potential for dividend cuts, especially if the bank faces financial difficulties or an economic downturn.

1. Credit Risk: Public banks with high levels of non-performing assets (NPAs) face increased credit risk, which can erode profitability and lead to reduced or suspended dividend payments.
2. Economic Sensitivity: Public banks are sensitive to economic cycles, and during downturns, they may experience reduced earnings, impacting their ability to maintain consistent dividends.
3. Regulatory Risks: The banking sector is heavily regulated, and changes in government policies or regulations can negatively affect the bank’s profitability and dividend-paying ability.
4. Interest Rate Fluctuations: Public banks’ profitability is influenced by interest rates. Sharp fluctuations in interest rates can compress margins, affecting the bank’s earnings and dividend payouts.
5. Market Volatility: Although public banks are generally less volatile, market fluctuations can still impact stock prices, leading to potential capital loss for investors, even if dividends remain stable.

Introduction to High Dividend Yield Public Bank Stocks under Rs 500

 Punjab National Bank

The Market Cap of Punjab National Bank is Rs. 132418.47 crores. The stock’s monthly return is -1.96%. Its one-year return is 88.64%. The stock is 25.42% away from its 52-week high.

Punjab National Bank (PNB) is a bank headquartered in India. It operates through various segments including Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. 

The bank offers a range of products including personal, corporate, international, and capital services. Personal products encompass deposits, loans, housing projects, NPA settlement options, accounts, insurance, government services, financial inclusion, and priority sector services.  

Bank of Baroda Ltd

The Market Cap of Bank of Baroda Ltd is Rs. 126,026.10 crore. The stock’s monthly return is -9.86%. Its one-year return is 26.69%. The stock is 24.90% away from its 52-week high.

The Bank of Baroda Limited operates within the banking and financial services sector in India. Its business is divided into segments including Treasury, Corporate / Wholesale Banking, Retail Banking, and Other Banking Operations. 

The company’s operations are further categorized into Domestic Operations and Foreign Operations. The bank offers various personal banking services like savings accounts, current accounts, and term deposits. It also provides a range of digital banking products such as Internet banking, mobile banking, cards, WhatsApp banking, digital signage systems (DSS), self-service passbook printers, and automated teller machines (ATMs).  

Union Bank of India Ltd

The Market Cap of Union Bank of India Ltd is Rs. 101,733.12 crore. The stock’s monthly return is -1.63%. Its one-year return is 45.69%. The stock is 37.20% away from its 52-week high.

Union Bank of India Ltd. is a banking company based in India, offering various services through different segments. These segments include Treasury Operations, Corporate and Wholesale Banking, Retail Banking Operations, and Other Banking Operations.   

The Treasury Operations segment provides a variety of account options, such as savings and current accounts, term and recurring deposits, and demat and online trading accounts.   The Corporate and Wholesale Banking segment offers services like trade finance, working capital facilities, lines of credit, project financing, and channel finance.  

Canara Bank Ltd

The Market Cap of Canara Bank Ltd is Rs. 100,221.63 crores. The stock’s monthly return is -5.73%. Its one-year return is 60.14%. The stock is 22.46% away from its 52-week high.

Canara Bank Limited (the Bank) is a bank based in India that operates in various segments, including Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, Life Insurance Operations, and Other Banking Operations. 

The Bank offers a wide range of products and services, such as personal banking and corporate banking. Personal banking services include depository services, mutual funds, ancillary services, technology products, retail loan products, micro, small, and medium enterprise loan products, and card services, among others.  

UCO Bank

The Market Cap of UCO Bank is Rs. 65,972.98 crore. The stock’s monthly return is 1.40%. Its one-year return is 90.31%. The stock is 36.73% away from its 52-week high.

UCO Bank is an India-based commercial bank that operates through four key segments: Treasury Operations, Corporate Banking Operations, Retail Banking Operations, and Other Banking Operations. 

The bank provides a range of services, including corporate banking, international banking, government business, and rural banking. Corporate banking services encompass debt/foremost, credit growth, deposits, and value-added services. International banking services cater to non-resident Indian (NRI) banking, finance/import to importers, resident foreign exchange (domestic) deposits, and contact banking.  

Bank of India Ltd

The Market Cap of Bank of India Ltd is Rs. 57,472.88 crore. The stock’s monthly return is 6.22%. Its one-year return is 46.97%. The stock is 29.10% away from its 52-week high.

Bank of India Limited (the Bank) is an India-based financial institution. It is divided into distinct segments comprising Treasury Operations, Wholesale Banking Operations, and Retail Banking Operations. 

The Treasury Operations segment deals with the bank’s investment portfolio, including government and other securities trading, money market activities, and foreign exchange operations. The Wholesale Banking Operations segment encompasses all loans and advances not categorized under retail banking. In contrast, the Retail Banking Operations segment includes exposures that must meet specific criteria related to maximum aggregate exposure and total annual turnover.  

Bank of Maharashtra Ltd

The Market Cap of Bank of Maharashtra Ltd is Rs. 46,390.08 crore. The stock’s monthly return is 3.08%. Its one-year return is 83.66%. The stock is 18.22% away from its 52-week high.

The Bank of Maharashtra Limited is involved in offering banking services through different segments, which include Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. 

The Treasury segment covers various financial activities such as investments, balances with overseas banks, interest earned on investments, and related income. The Corporate/Wholesale Banking Segment provides financial assistance to trusts, partnership firms, companies, and statutory bodies.  

Top High Dividend Yield Public Bank 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.