Highest Dividend Paying Stocks Under Rs.500

The table below shows the highest dividend paying stocks under Rs.500 based on the Highest Market Capitalization.

What Are The Highest Dividend Paying Stocks Under 500?

The highest dividend-paying stocks under Rs 500 are those that offer significant dividend yields relative to their share price. These stocks provide substantial income returns, making them appealing to investors seeking steady cash flow and long-term value growth. Companies in this category often exhibit strong financial health, stable earnings, and a history of consistent dividend payments.

Features Of Highest Dividend Paying Stocks Under 500

The features of the highest dividend-paying stocks under 500 are characterized by their affordability, strong dividend returns, and financial stability.

1. Affordability: These stocks are priced below 500, making them accessible to a wide range of investors looking to enter the market without significant capital.
2. High Dividend Returns: They offer substantial dividend yields, ensuring a steady income stream for shareholders even with a lower initial investment.
3. Financial Stability: Companies paying high dividends usually exhibit strong financial health, with robust cash flows and stable earnings, supporting consistent dividend payouts.
4. Income Focus: These stocks are ideal for income-focused investors, providing regular dividend payments that can supplement other income sources.
5. Growth Potential: Despite their high dividend yields, these stocks may also offer capital appreciation opportunities, benefiting investors with both income and growth prospects.

Best Highest Dividend Paying Stocks Under ₹500

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

Top Highest Dividend Paying Stocks Under 500 in India

The table below shows the top highest dividend paying stocks under 500 in India based on 1 Year Return. 

Factors To Consider When Investing In Highest Dividend Paying Stocks Under 500

The factors to consider when investing in the highest dividend paying stocks under ₹500 include evaluating the company’s financial health to ensure it can sustain dividend payments.

1. Dividend Yield: Assess the dividend yield to determine how much you earn relative to the stock price. Higher yields can indicate better returns but may come with increased risk.
2. Payout Ratio: Examine the payout ratio, which shows the percentage of earnings paid as dividends. A lower ratio suggests the company retains earnings for growth, balancing dividends and reinvestment.
3. Earnings Stability: Check the consistency of the company’s earnings. Stable earnings suggest reliable dividend payments without significant risk of cuts.
4. Debt Levels: Evaluate the company’s debt levels. High debt can limit its ability to pay dividends, especially during economic downturns.
5. Industry Position: Consider the company’s position within its industry. Market leaders or companies with competitive advantages are more likely to maintain steady dividends.

How To Invest In Highest Dividend Paying Stocks Under Rs.500?

Investing in the highest dividend paying stocks under ₹500 involves researching and selecting financially stable companies with consistent dividend payouts. Begin by opening a trading account with a reputable broker like Alice Blue. Monitor stock performance regularly and reinvest dividends to maximize returns.

Advantages Of Investing In Highest Dividend Paying Stocks Under 500

The primary advantage of investing in the highest dividend paying stocks under ₹500 is the potential for high-yield returns, providing regular income at a lower investment cost.

1. Regular Income: These stocks provide regular income through dividends, which can be especially attractive for retirees or those seeking passive income.
2. Lower Capital Requirement: Investing in lower-priced stocks allows investors to diversify their portfolios without needing significant capital, reducing overall investment risk.
3. Potential for Capital Gains: These stocks have the potential for price appreciation, offering capital gains alongside dividend income, thus enhancing total returns.
4. Reinvestment Opportunities: Dividends received can be reinvested to buy more shares, compounding returns over time and increasing the value of the investment.
5. Inflation Hedge: Dividend-paying stocks can act as an inflation hedge, as companies often increase dividends to keep up with inflation, protecting purchasing power.

Risks Of Investing In Highest Dividend Paying Stocks Under ₹500

The main risk of investing in the highest dividend paying stocks under ₹500 is the potential for high volatility, as these stocks can be more sensitive to market fluctuations.

1. Dividend Cuts: Companies may reduce or eliminate dividends during financial difficulties, leading to reduced income for investors relying on these payments.
2. Market Volatility: Lower-priced stocks often experience higher volatility, leading to significant price swings and potential capital losses for investors.
3. Economic Sensitivity: These stocks can be more vulnerable to economic downturns, affecting their ability to maintain dividend payments and overall financial stability.
4. Lower Liquidity: Stocks under ₹500 may have lower trading volumes, resulting in higher bid-ask spreads and difficulty in buying or selling large quantities without affecting the price.
5. Limited Growth Potential: Some high-dividend-paying stocks might have limited growth prospects, as they prioritize returning earnings to shareholders over reinvestment in business expansion.

Introduction to Highest Dividend Paying Stocks Under 500

ITC Ltd

The market capitalization of ITC Ltd is Rs. 583,733.85 crore. The stock’s monthly return is 0.95%. Its one-year return is 3.45%. The stock is 13.28% away from its 52-week high.

ITC Ltd, founded in 1910, is one of India’s leading multi-business conglomerates. The company has diversified interests in FMCG, hotels, paperboards, packaging, agri-business, and information technology.

Known for its commitment to sustainability and innovation, ITC Ltd has successfully evolved with changing times. Its iconic brands have earned trust across millions of households in India and abroad.

NTPC Ltd

The market capitalization of NTPC Ltd is Rs. 327,165.52 crore. The stock’s monthly return is -7.29%. Its one-year return is 13.35%. The stock is 32.91% away from its 52-week high.

NTPC Ltd, established in 1975, is India’s largest power utility company. It focuses on generating and supplying reliable and affordable electricity to the nation while advancing in renewable energy initiatives.

With a vision to provide sustainable energy, NTPC continues to innovate in power generation and infrastructure. The company remains a pivotal contributor to India’s energy security and development.

Wipro Ltd

The market capitalization of Wipro Ltd is Rs. 327,118.29 crore. The stock’s monthly return is 10.81%. Its one-year return is 44.74%. The stock is 0.38% away from its 52-week high.

Founded in 1945, Wipro Ltd started as a vegetable oil company and transformed into a global leader in IT services and consulting. It provides solutions across various industries.

Wipro is renowned for its innovation-driven approach, ethical values, and global presence. It continues to empower clients worldwide by leveraging technology to drive business transformation.

Oil and Natural Gas Corporation Ltd

The market capitalization of Oil and Natural Gas Corporation Ltd is Rs. 304,254.05 crore. The stock’s monthly return is -2.3%. Its one-year return is 19.02%. The stock is 42.65% away from its 52-week high.

ONGC, established in 1956, is a leading oil and gas exploration and production company in India. It plays a critical role in ensuring the nation’s energy security.

The company focuses on harnessing domestic resources and exploring international opportunities. ONGC’s commitment to innovation has positioned it as a global player in the energy sector.

Power Grid Corporation of India Ltd

The market capitalization of Power Grid Corporation of India Ltd is Rs. 299,153.92 crore. The stock’s monthly return is 1.13%. Its one-year return is 41.6%. The stock is 13.87% away from its 52-week high.

Power Grid Corporation, founded in 1989, is India’s central transmission utility. It develops, operates, and maintains a robust power transmission network across the country.

The company plays a vital role in ensuring reliable power supply and advancing India’s renewable energy goals. Its innovations support a sustainable and electrified future.

Coal India Ltd

The market capitalization of Coal India Ltd is Rs. 241,548.14 crore. The stock’s monthly return is -4.54%. Its one-year return is 11.3%. The stock is 38.68% away from its 52-week high.

Coal India Ltd, established in 1975, is the world’s largest coal producer. It operates through a network of mines and provides a significant share of India’s energy requirements.

Focused on energy efficiency and environmental sustainability, Coal India is a cornerstone of India’s power sector, ensuring coal availability for industrial growth.

Bharat Electronics Ltd

The market capitalization of Bharat Electronics Ltd is Rs. 218,196.9 crore. The stock’s monthly return is 8.07%. Its one-year return is 78.48%. The stock is 14.07% away from its 52-week high.

Bharat Electronics Ltd, founded in 1954, is a leading defense electronics company in India. It designs and manufactures advanced electronic products for defense and civilian sectors.

The company is recognized for its contributions to national security and technological innovation. It continues to drive India’s self-reliance in defense production.

Hindustan Zinc Ltd

The market capitalization of Hindustan Zinc Ltd is Rs. 202,540.67 crore. The stock’s monthly return is -2.61%. Its one-year return is 56.19%. The stock is 68.5% away from its 52-week high.

Hindustan Zinc Ltd is India’s largest zinc producer and a pioneer in non-ferrous metals. With roots tracing back to 1966, it has played a key role in industrial growth.

Committed to sustainability, the company has implemented innovative practices in mining and production. Hindustan Zinc is also a leader in corporate social responsibility initiatives.

Indian Railway Finance Corporation Ltd

The market capitalization of Indian Railway Finance Corporation Ltd is Rs. 199,739.05 crore. The stock’s monthly return is 5.25%. Its one-year return is 65.32%. The stock is 49.83% away from its 52-week high.

Established in 1986, Indian Railway Finance Corporation is the dedicated financial arm of Indian Railways. It finances the acquisition of rolling stock and infrastructure development projects.

The company plays a crucial role in supporting the modernization of Indian Railways. Its innovative financing solutions have strengthened the backbone of the nation’s transport system.

Indian Oil Corporation Ltd

The market capitalization of Indian Oil Corporation Ltd is Rs. 197,160.73 crore. The stock’s monthly return is 5.8%. Its one-year return is 16.3%. The stock is 40.95% away from its 52-week high.

Indian Oil Corporation Ltd, established in 1959, is the largest integrated oil refining and marketing company in India. It ensures energy availability across urban and rural regions.

Known for its innovation and customer focus, Indian Oil has diversified into petrochemicals, natural gas, and alternative energy solutions, driving India’s energy transition.

Top Highest Dividend Paying Stocks Under 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.