High Dividend Yield Stocks In Nifty Smallcap 50

The table below shows the high dividend yield stocks in nifty smallcap 50 based on the Highest Market Capitalization.

What Are The High Dividend Yield Stocks In Nifty Smallcap 50?

High dividend yield stocks in Nifty Smallcap 50 refer to companies within the Nifty Smallcap 50 index that offer higher than average dividend payouts relative to their share prices. These stocks are particularly appealing to investors who seek consistent income streams through dividends, making them a favorable choice for income-focused portfolios.

Features Of High Dividend Yield Stocks In Nifty Smallcap 50

The feature of high dividend yield stocks in the Nifty Smallcap 50 is their potential to offer higher returns through dividends, coupled with the opportunity for capital appreciation due to their growth potential. 

1. Growth Potential: Small-cap stocks often have significant growth potential, which can lead to both capital gains and rising dividends.
2. Undervalued Opportunities: High dividend yields in small-cap stocks may indicate undervalued companies with strong future prospects.
3. Higher Risk: These stocks come with higher volatility, presenting both greater risks and potential rewards.
4. Income with Growth: Investors can benefit from both dividend income and potential stock price appreciation.
5. Market Niche: Small-cap companies often operate in niche markets, which can provide unique opportunities for growth and profitability.

Best High Dividend Yield Stocks In Nifty Smallcap 50

The table below shows the best high dividend yield stocks in nifty smallcap 50 based on the highest day Volume.

Top High Dividend Yield Stocks In Nifty Smallcap 50 in India

The table below shows the top high dividend yield stocks in nifty smallcap 50 in India based on 1-Year Return. 

Factors To Consider When Investing In High Dividend Yield Stocks In Nifty Smallcap 50

The factors to consider when investing in high dividend yield stocks in the Nifty Smallcap 50 include evaluating the company’s dividend history, which reflects its consistency in rewarding shareholders.

1. Dividend Sustainability: Assess whether the company can sustain its dividend payouts by analyzing earnings, cash flow, and payout ratios.
2. Growth Potential: Look for companies with potential for capital appreciation alongside dividend income.
3. Industry Trends: Understand the industry’s future prospects, as dividends can be affected by sector performance.
4. Valuation: Ensure the stock is not overvalued, as a high yield might be due to a falling stock price.
5. Management Quality: Strong management is crucial for maintaining dividend policies, especially during economic downturns.

How To Invest In High Dividend Yield Stocks In Nifty Smallcap 50?

To invest in high dividend yield stocks in the Nifty Smallcap 50, open a demat and trading account with a trusted broker like Alice Blue. Visit their site, complete the KYC process, and begin trading. Focus on researching and selecting stocks with consistent dividend histories and strong growth potential.

Advantages Of Investing In High Dividend Yield Stocks In Nifty Smallcap 50

The primary advantage of investing in high dividend yield stocks within the Nifty Smallcap 50 is the potential for consistent income generation, which can complement capital appreciation over time.

1. Steady Income: High dividend yields provide regular income, which is especially valuable during market volatility.
2. Lower Volatility: Dividend-paying stocks often exhibit lower price volatility, offering a cushion against market downturns.
3. Compounding Effect: Reinvesting dividends can compound returns, significantly boosting your portfolio over time.
4. Inflation Hedge: Regular dividend payments can help offset inflation, preserving the purchasing power of your income.
5. Capital Appreciation: Besides income, small-cap stocks have growth potential, offering opportunities for capital gains.

Risks Of Investing In High Dividend Yield Stocks In Nifty Smallcap 50

The main risk of investing in high dividend yield stocks in the Nifty Smallcap 50 is the potential for dividend cuts, particularly if the company’s earnings decline or it faces financial difficulties.

1. Market Volatility: Small-cap stocks are generally more volatile, which can lead to significant price fluctuations and impact your overall returns.
2. Dividend Cuts: Companies may reduce or eliminate dividends during financial strain, affecting your expected income.
3. Liquidity Issues: Small-cap stocks may have lower liquidity, making it difficult to sell large positions without affecting the stock price.
4. Concentration Risk: Over-reliance on a few high-yield stocks can expose your portfolio to sector-specific risks.
5. Economic Sensitivity: Small-cap stocks are often more sensitive to economic downturns, which can lead to sharp declines in both dividends and stock prices.

Introduction to High Dividend Yield Stocks In Nifty Smallcap 50

Gujarat State Petronet Ltd

The Market Cap of Gujarat State Petronet Ltd is Rs. 19321.42 crores. The stock’s monthly return is 11.69%. Its one-year return is 19.66%. The stock is 20.61% away from its 52-week high.

Gujarat State Petronet Limited, an India-based company, operates in the transmission of natural gas through pipelines with open access from supply points to demand centers for end customer distribution.

The company also focuses on City Gas Distribution, and electricity generation through Windmills. It is involved in developing energy transportation infrastructure to connect natural gas sources, including LNG terminals, to markets. The company serves around 102 customers across various industries such as refineries, steel, fertilizer, petrochemicals, power, glass, textiles, chemicals, and other miscellaneous sectors.

Great Eastern Shipping Company Ltd

The Market Cap of Great Eastern Shipping Company Ltd is Rs. 19,035.86 crore. The stock’s monthly return is 7.17%. Its one-year return is 72.45%. The stock is 22.46% away from its 52-week high.

The Great Eastern Shipping Company Limited, based in India, operates as a private-sector shipping company. It specializes in transporting crude oil, petroleum products, gas, and dry bulk commodities. 

The company serves a diverse clientele, including oil companies, refineries, manufacturers, miners, and producers The company’s subsidiaries are The Greatship (Singapore) Pte. Ltd., The Great Eastern Chartering LLC (FZC), Greatship (India) Limited, Great Eastern CSR Foundation, and Great Eastern Services Limited.

Sonata Software Ltd

The Market Cap of Sonata Software Ltd is Rs. 18,248.86 crores. The stock’s monthly return is 1.44%. Its one-year return is 20.85%. The stock is 38.84% away from its 52-week high.

Sonata Software Limited, based in India, is a modernization engineering company that utilizes its proprietary Platformation approach to offer a range of modernization services. 

The company specializes in cloud and data modernization, Microsoft Dynamics modernization, digital contact center setup and management, managed cloud services, and digital transformation services. Its cloud modernization services encompass strategy and consulting, migration, development of cloud-native applications, and optimization. 

Mahanagar Gas Ltd

The Market Cap of Mahanagar Gas Ltd is Rs. 18232.90 crore. The stock’s monthly return is 11.04%. Its one-year return is 68.57%. The stock is 6.63% away from its 52-week high.

Mahanagar Gas Limited is an Indian company focused on distributing natural gas. The company distributes both compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, Thane, and Raigad districts of Maharashtra. 

Operating in the city gas distribution sector, it provides PNG for residential, commercial, and industrial purposes. The residential PNG is commonly used for cooking and heating water, while it is also utilized by various institutions such as hospitals, hotels, and restaurants. The company serves a range of industries, including metal, pharmaceuticals, food and beverages, printing, dyeing, oil mills, power generation, and air conditioning by supplying PNG gas. 

Manappuram Finance Ltd

The Market Cap of Manappuram Finance Ltd is Rs. 17,749.74 crores. The stock’s monthly return is 0.66%. Its one-year return is 45.22%. The stock is 15.51% away from its 52-week high.

Manappuram Finance Limited is an India-based non-banking financial company that offers credit services to individuals from lower socio-economic backgrounds, especially in rural and semi-urban areas of India.

The company operates in segments including Gold loans, microfinance, and others, providing a variety of retail credit products and financial services. It has a diverse lending portfolio catering to retail, microfinance, small and medium-sized enterprises (SMEs), and commercial customers. 

Karur Vysya Bank Ltd

The Market Cap of Karur Vysya Bank Ltd is Rs. 17645.22 crores. The stock’s monthly return is 6.60%. Its one-year return is 70.47%. The stock is 9.84% away from its 52-week high.

The Karur Vysya Bank Limited, an Indian banking company, offers a broad array of banking and financial services such as commercial banking and treasury operations. Its business is divided into segments including Treasury, Corporate and Wholesale Banking, Retail Banking, and Other Banking Operations. 

The Treasury segment involves investments in various instruments including government securities, debt instruments, and mutual funds. The Corporate and Wholesale Banking segment includes advances to trusts, firms, and companies. The Retail Banking segment provides lending and other services to small businesses. 

Indian Energy Exchange Ltd

The Market Cap of Indian Energy Exchange Ltd is Rs. 17368.39 crore. The stock’s monthly return is 6.73%. Its one-year return is 48.39%. The stock is 5.04% away from its 52-week high.

Indian Energy Exchange Limited, an India-based company, operates an automated trading platform for the physical delivery of electricity, renewables, and certificates. The platform offers multiple market options including electricity, green, and certificates. 

Within the electricity market, there are segments such as the day-ahead market, term-ahead market, real-time market, and cross-border electricity trade. The green market comprises the green term ahead market and green day-ahead market, while the certificate market includes renewable energy certificates and energy-saving certificates. 

Zensar Technologies Ltd

The Market Cap of Zensar Technologies Ltd is Rs. 17,281.44 crores. The stock’s monthly return is 0.54%. Its one-year return is 56.20%. The stock is 10.11% away from its 52-week high.

Zensar Technologies Limited is a company that provides digital solutions and technology services. They offer a variety of IT services and solutions through two segments: Digital and Application Services (DAS) and Digital Foundation Services (DFS). 

The DAS segment focuses on custom applications management services for application development, maintenance, support, modernization, and testing across different technology and industry sectors. The DFS segment offers infrastructure management services, including hybrid IT, digital workspace, dynamic security, and unified IT services managed through a service platform that utilizes automation, autonomics, and machine learning. 

Birlasoft Ltd

The Market Cap of Birlasoft Ltd is Rs. 16723.45 crores. The stock’s monthly return is -16.02%. Its one-year return is 29.02%. The stock is 48.90% away from its 52-week high.

Birlasoft Limited, an India-based company, focuses on providing information and communication services, computer programming, consultancy, and related activities. The company offers a diverse range of services including digital solutions and enterprise technologies.

Its digital services encompass data analytics, connected products, intelligent automation, cloud services, and blockchain technology. On the other hand, its enterprise technologies and services encompass various areas such as customer relationship management, manufacturing, product lifecycle management, infrastructure, and cloud technology. 

City Union Bank Ltd

The Market Cap of City Union Bank Ltd is Rs. 12,363.30 crores. The stock’s monthly return is -2.39%. Its one-year return is 21.78%. The stock is 8.81% away from its 52-week high.

City Union Bank Limited is an Indian banking organization that operates through different segments such as Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. 

The Bank utilizes modern technology and infrastructure, offering services like ATMs, net banking, mobile banking, e-wallet, and social media banking to cater to both personal and business banking customers. With a robust network of about 727 branches, the majority of which are situated in South India, and around 83 branches in other states, the Bank also runs approximately 1,732 ATMs. 

Top High Dividend Yield Stocks In Nifty Smallcap 50 – 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.