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

Oil and Natural Gas Corporation Ltd

The Market Cap of Oil and Natural Gas Corporation Ltd is Rs. 415275.02 crores. The stock’s monthly return is 18.95%. Its one-year return is 79.39%. The stock is 11.10% away from its 52-week high.

Oil and Natural Gas Corporation Limited is an Indian company that specializes in the exploration, production, refining, and marketing of crude oil and natural gas. 

The company operates in various business segments including Exploration and Production, as well as Refining and Marketing. Its activities involve exploring, developing, and producing crude oil, natural gas, and related products within India, as well as acquiring oil and gas assets internationally for exploration, development, and production.  

NTPC Ltd

The Market Cap of NTPC Ltd is Rs. 406969.08 crore. The stock’s monthly return is 11.92%. Its one-year return is 89.61%. The stock is 3.16% away from its 52-week high.

NTPC Limited is an India-based company that specializes in power generation. The company’s main focus is on producing and selling large quantities of power to State Power Utilities. NTPC operates in two main segments: Generation and Others. 

The Generation segment is responsible for producing and selling power to state power utilities, while the Other segment provides services such as consultancy, project management, energy trading, and more. NTPC owns and operates a total of 89 power stations in different Indian states, either on its own or through joint ventures and subsidiaries.  

Power Grid Corporation of India Ltd

The Market Cap of Power Grid Corporation of India Ltd is Rs. 333194.13 crores. The stock’s monthly return is 7.44%. Its one-year return is 84.34%. The stock is 5.75% away from its 52-week high.

The Power Grid Corporation of India Limited is a power transmission company that focuses on the planning, implementation, operation, and maintenance of the Inter-State Transmission System (ISTS), as well as providing telecom and consulting services.

The company has three main segments: Transmission Services, Consulting Services, and Telecom Services. Within Transmission Services, the company is responsible for transmitting bulk power across different states of India through extra high voltage/high voltage (EHV/HV) networks.  

Power Finance Corporation Ltd

The Market Cap of Power Finance Corporation Ltd is Rs. 173684.36 crores. The stock’s monthly return is -0.70%. Its one-year return is 133.28%. The stock is 16.45% away from its 52-week high.

Power Finance Corporation Limited is a non-banking financial company based in India that specializes in providing financial support to the power sector. 

The company offers a range of fund-based products such as project term loans, lease financing for equipment purchases, short/medium-term loans for equipment manufacturers, grants/interest-free loans for studies/consultancies, corporate loans, lines of credit for coal imports, debt refinancing, and credit facilities for purchasing power through power exchange.  

Vedanta Ltd

The Market Cap of Vedanta Ltd is Rs. 169503.17 crore. The stock’s monthly return is -7.24%. Its one-year return is 73.67%. The stock is 22.63% away from its 52-week high.

Vedanta Limited, an Indian-based natural resources company, operates in various sectors including oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminum, power, and glass substrate. 

The company’s diverse product line includes aluminum ingots, primary foundry alloys, wire rods, billets, and rolled products that serve industries such as power, transportation, construction, packaging, renewable energy, automobile, and aerospace.  

Gail (India) Ltd

The Market Cap of Gail (India) Ltd is Rs. 155835.96 crore. The stock’s monthly return is 8.45%. Its one-year return is 107.45%. The stock is 9.68% away from its 52-week high.

GAIL (India) Limited is an Indian company that specializes in processing and distributing natural gas. The company operates in different segments, including Transmission Services, Natural Gas Marketing, Petrochemicals, LPG And Liquid Hydrocarbons, and Other services. 

The Transmission Services segment deals with natural gas and liquid petroleum gas (LPG), while the Other segment encompasses City Gas Distribution (CGD), GAIL Tel, exploration and production (E&P), and power generation. Along with sourcing and trading natural gas, the company is involved in producing LPG, liquid hydrocarbons, and petrochemicals, as well as transmitting natural gas and LPG through its extensive pipeline network spanning approximately 14,500 kilometers.  

Bharat Petroleum Corporation Ltd

The Market Cap of Bharat Petroleum Corporation Ltd is Rs. 150589.53 crore. The stock’s monthly return is 14.55%. Its one-year return is 89.49%. The stock is 5.08% away from its 52-week high.

Bharat Petroleum Corporation Limited, an Indian company, is engaged in the production, refining, and distribution of petroleum products. Its diverse business portfolio encompasses fuel services, Bharatgas, MAK Lubricants, refineries, gas operations, industrial and commercial solutions, international trade, and proficiency testing services. 

Under its fuel services umbrella, the company offers various options like SmartFleet, Speed 97, UFill, PetroCard, SmartDrive, and more. Bharatgas aims to provide comprehensive solutions and support for businesses seeking energy-related products, ensuring quality and reliability.  

Bank of Baroda Ltd

The Market Cap of Bank of Baroda Ltd is Rs 1,26,026.10 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).  

Hindustan Petroleum Corp Ltd

The Market Cap of Hindustan Petroleum Corp Ltd is Rs 82,825.49 crore. The stock’s monthly return is 18.31%. Its one-year return is 117.75%. The stock is 4.59% away from its 52-week high.

Hindustan Petroleum Corporation Limited is a company involved in refining crude oil, marketing petroleum products, producing hydrocarbons, managing exploration and production blocks, generating power, and operating a liquefied natural gas regasification terminal currently under construction.

The company is divided into two segments: Downstream Petroleum, which focuses on refining and marketing petroleum products, and other segments engaged in hydrocarbon exploration and production, as well as sugar and ethanol manufacturing.

Ashok Leyland Ltd

The Market Cap of Ashok Leyland Ltd is Rs. 73,454.73 crore. The stock’s monthly return is 10.20%. Its one-year return is 33.30%. The stock is 6.15% away from its 52-week high.

Ashok Leyland Limited is an Indian company involved in automobile manufacturing. The company’s core operations include manufacturing and selling various commercial vehicles, providing vehicle and housing finance, offering IT services, and producing engines for industrial and marine purposes, as well as forging and castings. 

The company is divided into segments such as Commercial Vehicles and Financial Services. Its truck lineup comprises haulage, ICV, tippers, and tractors, while its bus range includes city, intercity, school, college, staff, stage carrier, and tourist buses.  

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.