As said by Rxann Klugman, dividend investing author. “I also do not believe in buying companies that do not pay attractive dividends. Nobody can forecast the future. But it’s obvious that companies that have a strong uninterrupted record are more interesting than those that have not.” Before analyzing top 10 best dividend stocks in India, it is important to understand the common terms used in this article.
Dividend is the additional amount that the company has to pay to its shareholders. Mostly, it is paid in the form of cash on a regular basis or in the form of stocks where additional stocks are offered to the shareholders. This payout ratio is called dividend payout ratio and the remainder amount that a company retains for its future operations and proceedings is called retention ratio.
Veteran investors such as Warren Buffet, Benjamin Graham and Rakesh Jhunjhunwala and others make huge money by applying right amount of technique related to stock market. They always focus on good and high dividend paying stocks. Also, in the current scenario, there are various top notch companies that are running in the stock market while making tremendous profits.
Here I have screened out 10 Best Dividend Stocks In India that will help an individual to reap the benefits in equity market. Along with that, the corpus will grow with an increment in the way of dividends too.
TOP 10 Dividend Stocks In India
NALCO-
National Aluminium Company Limited has a good track record when it comes to dividend payout. It has declared an equity dividend of 114.00% amounting to Rs 5.7 per share. At the current share price of Rs 48.90 and a dividend yield of 11.66%.
VEDANTA–
Vedanta Resources Limited is a global diversified metal and mining company with its main operations in iron ore, zinc and aluminium. For the year ending March 2019, Vedanta has declared an equity dividend of 1885 % amounting to Rs 18.85 per share. At the current share price of Rs 170.35 this results in a dividend yield of 11.07%.. At the current share price of Rs 168.45 this result in a best dividend stock yield of 11.19%.
COAL INDIA–
Coal India Limited is an Indian State controlled mining company. The recent recovery in the company’s shares in stock market, the Coal India stock has underperformed in the Nifty 100 index this year but this year is also the profitability has been strong. According to Bloomberg, Coal India is estimated to post a consolidated net profit of Rs.16,416 crore.
It has yielded a dividend of around 6.39%.The equity dividend of 165% amounting to Rs.16.50 per share and the share price of Rs. 258.35
OIL INDIA–
Oil India Limited is a premier Oil company engaged in exploration, development and production of crude oil and natural gas. Taking about its meeting with Board of Directors it has declared dividend of Rs.17.50% on paid up equity share capital.
SJVN–
Sutlej Jal Vitran Nigam is another high paying dividend stocks and pays around 7.89%. Its P/E Ratio is 9.34 and face value of 10.
SJVN Limited, a Mini Ratna, was incorporated on May 24, 1988 as a joint venture of the Government of India (GOI) and the Government of Himachal Pradesh (GOHP).
SJVN is now a listed company with a 61.93 percent shareholder pattern with Govt of India, 26.85 percent with Govt. Of Himachal Pradesh and the Public remaining 11.22 percent. Rs. 3,929.80 Crore and Rs. 7,000 Crore respectively are the present paid-up capital and authorized capital of SJVN. As at 31.03.2019, the Net Worth is Rs.11238.78 Crore.
MERCK LIMITED–
Currently, it has been renamed as Procter & Gamble Health ltd, For the year ending December 2018, Procter & Gamble Health has declared an equity dividend of 4400.00% amounting to Rs 440 per share. At the current share price of Rs 3977.00 this result in a dividend yield of 11.06%. The company has a good dividend track report and has consistently declared dividends for the last 5 years.
NATIONAL STEEL & AGRO INDUSTRIES LTD. –
National Steel and Agro Industries Limited is an India-based company, which offers galvanized/coated steel sheet and other agro commodities. The Company’s segments include Manufacturing segment and trading segment. It has turned out to be the best dividend stock in the time frame concerned
POWER FINANCE CORPORATION–
It is an Indian Financial Institution and considered to be the backbone of Indian Power Sector. For the year ending March 2018, the company has declared an equity dividend of 78.00% amounting to Rs 7.8 per share. At the current share price of Rs 134.30 which results in a dividend yield of 5.81%
HINDUSTAN ZINC–
Hindustan Zinc is one of the highest dividend paying stocks. In recent times, it is paying a dividend of 9.38% and its Price to Earnings Ratio (P/E Ratio) is 15.91. Which is quite good as compared to its competitors.
RURAL ELECTRIFICATION
holds a dividend of around 7.06% and its P/E Ratio is 10.29%.However when the promoters are concerned.
They hold majorly shares above 50%.