High Dividend Yield Textile Stocks under Rs 500

The table below shows the high dividend yield textile stocks under Rs 500 based on the highest market capitalization.

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

High dividend yield textile stocks under ₹500 refer to shares of companies in the textile industry that offer substantial dividend payouts relative to their share price. These stocks are attractive to investors seeking regular income through dividends while investing in the textile sector, which includes businesses involved in fabric production, apparel manufacturing, and related activities. 

Features Of High Dividend Yield Textile Stocks under 500

The feature of high dividend yield textile stocks under 500 Rs is that they offer a reliable income stream through dividends while being affordable for investors, often belonging to well-established companies in the textile industry.

1. Stable Dividend Payments: These companies typically provide consistent dividends, ensuring a steady income for shareholders.
2. Strong Industry Presence: These stocks usually belong to companies with a significant market share and strong brand recognition in the textile sector.
3. Cost Efficiency: Textile companies with high dividend yields often focus on cost-efficient operations, which helps maintain profitability.
4. Resilience in Demand: The demand for textiles tends to be stable, supporting consistent earnings and dividend payments.
5. Potential for Growth: Despite their lower price, these stocks may offer growth potential through innovation, market expansion, or export opportunities.

Best High Dividend Yield Textile Stocks under ₹500

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

Top High Dividend Yield Textile Stocks under Rs 500 in India

The table below shows the top high dividend yield textile stocks under Rs 500 in India based on a 1-year return. 

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

The factors to consider when investing in high dividend yield textile stocks under ₹500 include assessing the stability of dividends, evaluating the company’s financial health, and understanding the sector’s market dynamics. 

1. Dividend Stability: Ensure the company has a track record of consistent dividend payments. Reliable and stable dividends are key indicators of financial health and the company’s ability to provide steady income.
2. Financial Health: Examine the company’s financial statements, focusing on its revenue, profit margins, and debt levels. A strong balance sheet suggests that the company can sustain dividend payments and manage financial challenges effectively.
3. Market Conditions: Consider the textile industry’s market trends and economic factors. Understand how fluctuations in raw material prices or changes in consumer demand might impact the company’s profitability and dividend capacity.
4. Growth Prospects: Investigate the company’s potential for expansion and innovation. Companies with growth strategies, such as entering new markets or adopting new technologies, might offer both steady dividends and potential capital appreciation.
5. Valuation: Assess the stock’s price relative to its earnings and dividends. Ensure the stock is not overpriced compared to its dividend yield, as an inflated price can diminish the investment’s overall returns.

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

To invest in high dividend yield textile stocks under ₹500, start by researching textile companies with strong dividend histories and low stock prices. Open a trading account with a reliable brokerage platform, complete the KYC process, and then place buy orders for the selected stocks. For guidance, visit Alice Blue to request a callback and get started.

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

The primary advantages of investing in high dividend yield textile stocks under ₹500 offer steady income and affordability, with the added benefit of potential growth in a sector essential for global trade. 

1. Steady Income: High dividend yield stocks provide regular cash flow, offering a reliable source of income. This consistent dividend payout can help support your financial goals and balance your investment portfolio.
2. Affordability: Stocks priced under ₹500 are accessible to investors with limited capital. This affordability allows you to invest in the textile sector without needing significant initial investment, facilitating diversification.
3. Growth Potential: The textile industry, integral to global supply chains, has growth potential driven by increasing consumer demand and technological advancements. Investing in this sector can offer both dividends and potential capital appreciation.
4. Portfolio Diversification: Including textile stocks in your portfolio adds diversification, reducing reliance on other sectors. Diversification helps mitigate risks and enhances the stability of your overall investment strategy.
5. Tax Efficiency: Dividends may be taxed at favorable rates compared to other income types. Depending on your tax situation, this can improve the net return from your investments in high dividend yield textile stocks.

Risks Of Investing In High Dividend Yield Textile Stocks Under 500

The main risks of investing in high dividend yield textile stocks under ₹500 include potential dividend cuts, market volatility, and sector-specific challenges. Evaluating these risks is crucial to managing your investment effectively.

1. Dividend Cuts: Companies might reduce or eliminate dividends if they face financial difficulties or declining revenues. A sudden decrease in dividends can negatively affect your expected income and investment returns.
2. Market Volatility: Stocks priced under ₹500 can experience higher volatility. This increased price fluctuation can lead to unpredictable returns and a greater risk of capital loss.
3. Sector-Specific Risks: The textile industry faces challenges such as fluctuating raw material prices and changing consumer preferences. These sector-specific risks can impact company profitability and dividend stability.
4. Economic Downturns: Economic slowdowns can reduce demand for textiles, affecting company earnings. During such downturns, companies might struggle to maintain high dividend payouts.
5. Inflation Risk: High dividend yields might not always keep pace with inflation. Rising inflation can erode the real value of dividend income, impacting your overall investment return.

Introduction to High Dividend Yield Textile Stocks under ₹500

Trident Ltd

The Market Cap of Trident Ltd is Rs. 18,533.48 crores. The stock’s monthly return is -1.88%. Its one-year return is 13.67%. The stock is 43.63% away from its 52-week high.

Trident Limited is an Indian company that is involved in the production, trade, and sale of textiles as well as paper and chemicals. The company operates through two divisions: Textiles and Paper and Chemical. 

The Textiles division encompasses the manufacturing of yarn, towels, bedsheets, and dyed yarn, along with utility services. The Paper and Chemical division includes products such as paper and sulfuric acid, along with utility services.  

Vardhman Textiles Ltd

The Market Cap of Vardhman Textiles Ltd is Rs. 14,186.92 crores. The stock’s monthly return is -5.95%. Its one-year return is 45.12%. The stock is 20.67% away from its 52-week high.

Vardhman Textiles Limited, headquartered in India, is a vertically integrated textile manufacturer engaged in the production, purchase, and sale of textiles. The company manufactures cotton yarn, synthetic yarn, and woven fabric, and offers a variety of products such as yarns, fabrics, acrylic fiber, garments, collections, and special steel. 

Its yarn range includes specialty yarns, acrylic, fancy and hand-knit yarns, dyed yarns, and grey yarns, while its fabric collection comprises tops, bottoms, outerwear for men and women, solid, yarn-dyed, print, dobies, and various performance finishes.

Indo Count Industries Ltd

The Market Cap of Indo Count Industries Ltd is Rs. 7,156.69 crores. The stock’s monthly return is -8.36%. Its one-year return is 57.76%. The stock is 24.71% away from its 52-week high.

Indo Count Industries Limited is an Indian company specializing in home textile bed linens. The company manufactures and exports a variety of products including bed sheets, bed linen, and quilts. It offers a diverse range of items such as fashion bedding, utility bedding, institutional bedding, and more. 

Indo Count Industries Limited markets its branded products through various channels, both online and offline. Some of its popular in-house brands include Boutique Living, Haven, Revival, and Pure Collection. The company’s manufacturing facilities are located in Kolhapur, Maharashtra, and Bhilad, Gujarat.

Bombay Dyeing and Mfg Co Ltd

The Market Cap of Bombay Dyeing and Mfg Co Ltd is Rs. 4,395.48 crores. The stock’s monthly return is -1.71%. Its one-year return is 61.84%. The stock is 14.27% away from its 52-week high.

The Bombay Dyeing and Manufacturing Company Limited, based in India, is involved in real estate development, polyester staple fiber production, and retail operations. The company operates in three segments: Real Estate, Polyester, and Retail/Textile. It manufactures 100% virgin polyester staple fiber (PSF) and textile-grade polyethylene terephthalate (PET) chips. 

The company’s main focus is on building construction through its real estate division. It has three divisions that run its operations: Retail Division, PSF Division, and Bombay Realty (BR) Division.  

Nitin Spinners Ltd

The Market Cap of Nitin Spinners Ltd is Rs. 2,326.38 crores. The stock’s monthly return is 15.10%. Its one-year return is 70.85%. The stock is 14.55% away from its 52-week high.

Nitin Spinners Limited, headquartered in India, operates in the textile industry. The company specializes in manufacturing cotton yarn, knitted fabrics, and finished woven fabrics. Their yarn collection ranges from cotton ring spun carded yarns in a variety of counts to poly/cotton blended ring spun yarns and core spun yarns.

In terms of knitted fabrics, they offer a range including single jersey, lycra blended fabrics, and pique structures. Their finished and printed fabrics include various options such as cotton spandex, poly/cotton, dyed finishes, and a variety of special finishes like Teflon and wrinkle-free.

Filatex India Ltd

The Market Cap of Filatex India Ltd is Rs. 1,692.30 crores. The stock’s monthly return is 2.66%. Its one-year return is 41.08%. The stock is 38.40% away from its 52-week high.

Filatex India Limited, an India-based company, is involved in the production and trade of synthetic yarn and textiles. The company manufactures polyester and polypropylene multifilament yarn, as well as polyester chips. 

It offers a wide range of synthetic yarns, including polyester partially oriented yarns (POY), polyester filament yarns, fully drawn yarns (FDY), drawn textured yarn (DTY), air textured yarn (ATY), polypropylene yarn (PPY), and narrow woven fabrics (NWF).  

The Ruby Mills Ltd

The Market Cap of The Ruby Mills Ltd is Rs. 781.99 crores. The stock’s monthly return is -3.47%. Its one-year return is -0.60%. The stock is 21.12% away from its 52-week high.

The Ruby Mills Limited, an India-based company, specializes in manufacturing cotton and blended yarn and fabric. The company has two main segments: Textile and Real Estate. Their fabric range includes cotton, polyester, viscose, modal, lyocell, linen, Bemberg, ramie, rayon, and lycra, along with their blends. 

They offer brands like Ruby Fabrics, Lukas, Hitline, and Label R. The company also produces interlining products such as basic interlining, HDPE interlining, and LDPE interlining. In the apparel business, they focus on designing and producing a variety of ready-to-wear garments for healthcare, fashion, corporate, educational, workwear, and defense sectors.

Banswara Syntex Ltd

The Market Cap of Banswara Syntex Ltd is Rs. 499.14 crores. The stock’s monthly return is -12.13%. Its one-year return is -3.34%. The stock is 25.22% away from its 52-week high.

Banswara Syntex Limited is an Indian textile company that is fully integrated and specialized in producing yarn, fabric, and ready-to-wear clothing. 

The company manufactures and markets a variety of products, including spun synthetic blended yarn, wool and wool blend yarn, synthetic and worsted fabrics, cotton and linen fabrics, and ready-to-wear garments. Moreover, the company also creates shirting and technical fabrics, with some notable items such as performance finish fabric, technical fabric, automotive fabric, and fire-retardant fabric.  

Vardhman Acrylics Ltd

The Market Cap of Vardhman Acrylics Ltd is Rs. 483.71 crores. The stock’s monthly return is 1.19%. Its one-year return is 16.42%. The stock is 24.44% away from its 52-week high.

Vardhman Acrylics Limited, an India-based company, specializes in manufacturing and supplying various types of acrylic fiber and tow. Operating out of a manufacturing facility in Gujarat, India, the company markets its products under the VARLAN brand. 

These products cater to a wide range of needs, such as non-shrinkable, high shrinkage, medium shrinkage, very high shrinkable, and various tow options. Additionally, the company offers different types of staples aimed for open-end usage, providing characteristics like a soft touch and high water absorbency.  

VTM Ltd

The Market Cap of VTM Ltd is Rs. 281.51 crores. The stock’s monthly return is 1.69%. Its one-year return is 24.96%. The stock is 12.89% away from its 52-week high.

VTM Limited is an Indian company that produces textile products, focusing on manufacturing grey weaving essentials for both domestic and international markets. Their product range includes various types such as Square Inch Drills, Twills, Sateens, Piques, Jacquards, and an assortment of Complex Dobbies. 

VTM’s manufacturing facility is based in Virudhunagar, South India, and houses around 258 looms. In addition, they utilize over 80 Sulzer machines, six Rapier Leno looms, 163 Air jets, and nine Jacquard machines to collectively generate about 1.8 million meters of fabric monthly.  

Top High Dividend Yield Textile Stocks under ₹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.