ividends have long been considered a beacon of stability and a source of passive income for investors. As the saying goes, "A penny saved is a penny earned," and what better way to earn than by investing in companies that generously reward their shareholders?
In the vast and dynamic landscape that is the Indian stock market, there are a few companies that consistently stand out for their remarkable dividend payouts. These companies not only weather the storms of market volatility but also demonstrate a commitment to sharing their profits with their valued shareholders.
Identifying the highest dividend-paying stocks in India requires careful analysis and taking into consideration diverse factors. Among other things, these include the dividend yield, which is the annual dividend amount expressed as a percentage of the stock's current market price. Thorough research and analysis are crucial to ensure that the stocks chosen have the potential to deliver sustainable dividends over the long term.
In this article, we will explore the highest dividend-paying stocks in India, highlighting some of the top companies that have a track record of rewarding their investors with substantial dividend payouts. From established blue-chip corporations to emerging sector leaders, India's stock market offers a diverse range of investment opportunities that can potentially enhance your portfolio's performance and provide you with a steady stream of income.
Top 20 highest dividend-paying stocks in India in 2023
In India, several companies offer attractive dividend yields to their investors. However, not all dividend-paying stocks are created equal. Therefore, investors need to do their research and pick stocks that not only offer attractive dividend yields but also have a strong track record of consistent dividend payments and a healthy financial outlook.
In this section, we'll take a closer look at each company's financial performance, dividend history, and other key metrics that are important for investors. This section will help you make informed decisions when it comes to investing in high dividend-paying stocks in India.
*Table last updated on May 29, 2023.
||Dividend in FY23 (Rs)
||AVERAGE DIVIDEND YIELD in FY23 (%)
|Narmada Gelatines Ltd
|TV Today Network Ltd.
|Hindustan Zinc Ltd.
|Styrenix Performance Materials Ltd
|India Infrastructure Trust
|Forbes & Company Ltd.
|Banco Products (india)
|Indian Card Clothing Limited
|Coal India Ltd.
|India Grid Trust
|Sanofi India Ltd.
|Standard Industries Ltd.
|IRB InvIT Fund
|PNB Gilts Ltd.
|Castrol India Ltd.
|Goodyear India Ltd.
|Balmer & Lawrie Investments
|Brookfield India Real Estate Trust
|Oil India Ltd.
|Geojit Financial Services
|Oswal Green Tech Ltd.
|IL&FS Investment Managers Limited
|Oracle Financial Services Software
|Accelya Solutions India Ltd
|PTC India Ltd.
|National Aluminium Company Limited
|PTL Enterprises Ltd.
|Bank of Maharashtra
|Glenmark Life Sciences
|Power Finance Corporporation
Terms related to dividends
Before venturing into stock market investing, it is crucial to have a solid understanding of the basics. Investing in stocks can be complex and risky, but with the right knowledge, you can make informed decisions and mitigate potential pitfalls.
What is dividend yield?
The dividend yield is a financial metric that represents the annual dividend payment of a company as a percentage of its current share price. It is calculated by dividing the total dividend paid by the company over the past year by the current stock price and expressing the result as a percentage.
For example, if a company pays an annual dividend of Rs. 10 per share and its current share price is Rs. 100, then the dividend yield would be 10 percent (Rs. 10/Rs. 100 x 100%).
What is ex-dividend?
Ex-date, short for ex-dividend date, is a significant date in the context of dividend payments. It is the date on or after which a stock no longer carries the right to receive the recently declared dividend. Investors who buy the stock on or post the ex-date will not receive the upcoming dividend payment.
What is an interim dividend?
Interim dividend refers to a dividend payment made by a company to its shareholders during its financial year before the final annual dividend is declared. It is typically distributed when a company has generated sufficient profits and wants to share them with shareholders before the year-end.
What is the declaration date?
The declaration date refers to when a company's board of directors announces an upcoming dividend payment to its shareholders. It is the official announcement of the dividend amount, record date, and payment date. The declaration date provides investors with important information regarding their entitlement to the dividend and upcoming income.
What is record date?
A company's record date is the date it determines which shareholders are entitled to dividends or other corporate actions. Investors who own shares of the company on or before the record date are entitled to the declared dividend or participate in other activities like stock splits or rights offerings.
What is the payment date?
The payment date refers to the specific date on which a company distributes dividend payments to its shareholders. It is the date when the dividend amount, as declared by the company, is paid out to eligible shareholders. The payment date is an important factor for investors to track when considering dividend income from their investments.
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