Investors always want high return for their
investment in stocks. Dividend yield is apart from stock value appreciation.
Companies who pay dividends are always attracted by investors. As on dividend
investor need not to pay income tax, also dividend yield can be reinvested for
more returns. Dividend income is also known as passive income. Dividend income is assured income which
investors loves to take.
Dividend is the return which companies pay
from net profit to shareholders. So high dividend yield means more the company
is making profit. Which also indicates company is on the track of growth.
When to
Buy Dividend yield Stocks:-
It is usual understanding that dividend
paying stocks are very stable one and have very low Beta means stock movement
is not much with movement of stock market. It is usual practice of investors to
buy dividend yield stocks when market is crashing and selling and buying high
beta stocks when market is in uptrend.
For individual investor it is always
advisable to keep balanced portfolio , keeping both high dividend stocks and
also keeping other stocks as well.
It is always advisable to select stocks
which gives consistent dividend yield. There are stocks which give high
dividend in one year and nothing in following year. There are many instances
when companies give huge dividend at one go and on following years they will
give low dividends. For instance Hindustan Zinc has announced a special
dividend of 1375% i.e. 27.50 Rs/Share at face value of 2 Rs. But in other years
it may not be same as announced.
Reinvesting dividend further increases the
yield. People must invest systematically to accumulate dividend stocks. This
way not only they accumulate fundamentally strong stocks but also increase
dividend earning.
It is important to reinvest dividend that flows-in. This extra
money buys more dividend stocks. This cycle continues. More stocks means more
dividend, which again buys more stocks. It is said that Warren Buffett earns
billion dollars alone in dividends. Let us set a personal target for ourselves.
In next five years our dividend income shall be reach Rs 5,000/month. Let us
start accumulating quality, dividend paying Indian stocks.
Best / High dividend paying
stocks in India
(Updated
as on February’2017)
EQUITY DIVIDEND PAID (Rs.Cr.)
|
|||||||
SL
|
Company
|
Mar'16
|
Mar'15
|
Mar'14
|
Mar'13
|
Mar'12
|
Average Last 5Y
|
1
|
Coal India Limited (CIL)
|
17,306.84
|
13,074.88
|
18,317.46
|
8,842.91
|
6,316.36
|
12,771.69
|
2
|
ONGC
|
7,272.18
|
8,127.72
|
8,127.72
|
8,127.72
|
8,341.61
|
7,999.39
|
3
|
Tata Consultancy Services (TCS)
|
8,571.38
|
15,473.87
|
6,267.33
|
4,305.88
|
4,893.04
|
7,902.30
|
4
|
ITC Ltd.
|
6,840.12
|
5,009.70
|
4,771.91
|
4,148.46
|
3,518.29
|
4,857.70
|
5
|
Infosys
|
5,570.00
|
5,111.00
|
3,618.00
|
2,412.00
|
2,699.00
|
3,882.00
|
6
|
NTPC Ltd.
|
2,762.24
|
2,061.38
|
4,741.15
|
4,741.16
|
3,298.19
|
3,520.82
|
7
|
Hindustan Zinc
|
11,746.39
|
1,859.14
|
1,478.86
|
1,309.85
|
1,014.08
|
3,481.66
|
8
|
NMDC
|
4,361.19
|
3,389.83
|
3,370.01
|
2,775.30
|
1,784.12
|
3,136.09
|
9
|
HUL
|
3,462.25
|
3,245.32
|
2,811.43
|
3,999.99
|
1,620.94
|
3,027.99
|
10
|
Reliance Industries Ltd. (RIL)
|
3,095.00
|
2,944.00
|
2,793.00
|
2,628.00
|
2,531.00
|
2,798.20
|
DIVIDEND PER SHARE (Rs.)
|
|||||||
SL
|
Company
|
Mar'16
|
Mar'15
|
Mar'14
|
Mar'13
|
Mar'12
|
Growth in last 5Y %
|
1
|
Coal India Limited (CIL)
|
27.40
|
20.70
|
29.00
|
14.00
|
10.00
|
22.33
|
2
|
ONGC
|
8.50
|
9.50
|
9.50
|
9.50
|
9.75
|
-2.71
|
3
|
Tata Consultancy Services (TCS)
|
43.50
|
79.00
|
32.00
|
22.00
|
25.00
|
11.71
|
4
|
ITC Ltd.
|
8.50
|
6.25
|
6.00
|
5.25
|
4.50
|
13.56
|
5
|
Infosys
|
24.25
|
59.50
|
63.00
|
42.00
|
47.00
|
-12.40
|
6
|
NTPC Ltd.
|
3.35
|
2.50
|
5.75
|
5.75
|
4.00
|
-3.48
|
7
|
Hindustan Zinc
|
27.80
|
4.40
|
3.50
|
3.10
|
2.40
|
63.22
|
8
|
NMDC
|
11.00
|
8.55
|
8.50
|
7.00
|
4.50
|
19.57
|
9
|
HUL
|
16.00
|
15.00
|
13.00
|
18.50
|
7.50
|
16.36
|
10
|
Reliance Industries Ltd. (RIL)
|
10.50
|
10.00
|
9.50
|
9.00
|
8.50
|
4.32
|
DIVIDEND YIELD (%)
|
|||||||
SL
|
Company
|
Net Profit (Last Year) Rs.Cr.
|
Dividend Paid (last 5Y Avg.)
|
Dividend Payout (%)
|
Current Market Price (Rs.)
|
Divided Per Share (Last 5Y Avg.)
|
Dividend Yield (Last 5Y Avg.) %
|
1
|
Coal India Limited (CIL)
|
16,343.53
|
12,771.69
|
78.15
|
323.00
|
20.22
|
6.26
|
2
|
ONGC
|
16,003.65
|
7,999.39
|
49.98
|
195.00
|
9.35
|
4.79
|
3
|
Tata Consultancy Services (TCS)
|
22,882.70
|
7,902.30
|
34.53
|
2,340.00
|
40.30
|
1.72
|
4
|
ITC Ltd.
|
9,844.71
|
4,857.70
|
49.34
|
275.00
|
6.10
|
2.22
|
5
|
Infosys
|
15,786.00
|
3,882.00
|
24.59
|
953.00
|
47.15
|
4.95
|
6
|
NTPC Ltd.
|
10,242.91
|
3,520.82
|
34.37
|
170.00
|
4.27
|
2.51
|
7
|
Hindustan Zinc
|
8,166.58
|
3,481.66
|
42.63
|
323.00
|
8.24
|
2.55
|
8
|
NMDC
|
3,028.33
|
3,136.09
|
103.56
|
147.00
|
7.91
|
5.38
|
9
|
Hindustan Unilever Ltd. (HUL)
|
4,082.37
|
3,027.99
|
74.17
|
855.00
|
14.00
|
1.64
|
10
|
Reliance Industries Ltd. (RIL)
|
27,417.00
|
2,798.20
|
10.21
|
1,029.00
|
9.50
|
0.92
|
Dividend is the return which companies pay
from net profit to shareholders. So high dividend yield means more the company
is making profit. Which also indicates company is on the track of growth.
When to
Buy Dividend yield Stocks:-
It is usual understanding that dividend
paying stocks are very stable one and have very low Beta means stock movement
is not much with movement of stock market. It is usual practice of investors to
buy dividend yield stocks when market is crashing and selling and buying high
beta stocks when market is in uptrend.
For individual investor it is always
advisable to keep balanced portfolio , keeping both high dividend stocks and
also keeping other stocks as well.
It is always advisable to select stocks
which gives consistent dividend yield. There are stocks which give high
dividend in one year and nothing in following year. There are many instances
when companies give huge dividend at one go and on following years they will
give low dividends. For instance Hindustan Zinc has announced a special
dividend of 1375% i.e. 27.50 Rs/Share at face value of 2 Rs. But in other years
it may not be same as announced.
Reinvesting dividend further increases the
yield. People must invest systematically to accumulate dividend stocks. This
way not only they accumulate fundamentally strong stocks but also increase
dividend earning.
In Below list Hindustan Zinc will be added as well as dividend yeild for the stock is as below:-
Announcement Date | Effective Date | Dividend % | Dividend Type |
03-22-2017 | 03-29-2017 | 1,375.00 | Special |
10-28-2016 | 11-04-2016 | 95.00 | Interim |
03-30-2016 | 04-06-2016 | 1,200.00 | Special |
10-19-2015 | 10-23-2015 | 95.00 | Special |
10-19-2015 | 10-23-2015 | 95.00 | Interim |
04-20-2015 | 05-12-2015 | 125.00 | Final |
09-17-2014 | 09-22-2014 | 95.00 | Interim |
04-21-2014 | 05-19-2014 | 95.00 | Final |
10-23-2013 | 10-28-2013 | 80.00 | Interim |
04-25-2013 | 05-09-2013 | 75.00 | Final |
10-18-2012 | 10-23-2012 | 80.00 | Interim |
04-19-2012 | 06-28-2012 | 45.00 | Final |
10-19-2011 | 10-25-2011 | 75.00 | Interim |
04-21-2011 | 06-16-2011 | 50.00 | Final |
04-21-2010 | 07-22-2010 | 60.00 | Final |
04-22-2009 | 07-29-2009 | 40.00 | Final |
04-24-2008 | 08-12-2008 | 25.00 | Final |
Best / High dividend paying
stocks in India
EQUITY DIVIDEND PAID (Rs.Cr.)
|
|||||||
SL
|
Company
|
Mar'16
|
Mar'15
|
Mar'14
|
Mar'13
|
Mar'12
|
Average Last 5Y
|
1
|
Coal India Limited (CIL)
|
17,306.84
|
13,074.88
|
18,317.46
|
8,842.91
|
6,316.36
|
12,771.69
|
2
|
ONGC
|
7,272.18
|
8,127.72
|
8,127.72
|
8,127.72
|
8,341.61
|
7,999.39
|
3
|
Tata Consultancy Services (TCS)
|
8,571.38
|
15,473.87
|
6,267.33
|
4,305.88
|
4,893.04
|
7,902.30
|
4
|
ITC Ltd.
|
6,840.12
|
5,009.70
|
4,771.91
|
4,148.46
|
3,518.29
|
4,857.70
|
5
|
Infosys
|
5,570.00
|
5,111.00
|
3,618.00
|
2,412.00
|
2,699.00
|
3,882.00
|
6
|
NTPC Ltd.
|
2,762.24
|
2,061.38
|
4,741.15
|
4,741.16
|
3,298.19
|
3,520.82
|
7
|
Hindustan Zinc
|
11,746.39
|
1,859.14
|
1,478.86
|
1,309.85
|
1,014.08
|
3,481.66
|
8
|
NMDC
|
4,361.19
|
3,389.83
|
3,370.01
|
2,775.30
|
1,784.12
|
3,136.09
|
9
|
HUL
|
3,462.25
|
3,245.32
|
2,811.43
|
3,999.99
|
1,620.94
|
3,027.99
|
10
|
Reliance Industries Ltd. (RIL)
|
3,095.00
|
2,944.00
|
2,793.00
|
2,628.00
|
2,531.00
|
2,798.20
|
DIVIDEND PER SHARE (Rs.)
|
|||||||
SL
|
Company
|
Mar'16
|
Mar'15
|
Mar'14
|
Mar'13
|
Mar'12
|
Growth in last 5Y %
|
1
|
Coal India Limited (CIL)
|
27.40
|
20.70
|
29.00
|
14.00
|
10.00
|
22.33
|
2
|
ONGC
|
8.50
|
9.50
|
9.50
|
9.50
|
9.75
|
-2.71
|
3
|
Tata Consultancy Services (TCS)
|
43.50
|
79.00
|
32.00
|
22.00
|
25.00
|
11.71
|
4
|
ITC Ltd.
|
8.50
|
6.25
|
6.00
|
5.25
|
4.50
|
13.56
|
5
|
Infosys
|
24.25
|
59.50
|
63.00
|
42.00
|
47.00
|
-12.40
|
6
|
NTPC Ltd.
|
3.35
|
2.50
|
5.75
|
5.75
|
4.00
|
-3.48
|
7
|
Hindustan Zinc
|
27.80
|
4.40
|
3.50
|
3.10
|
2.40
|
63.22
|
8
|
NMDC
|
11.00
|
8.55
|
8.50
|
7.00
|
4.50
|
19.57
|
9
|
HUL
|
16.00
|
15.00
|
13.00
|
18.50
|
7.50
|
16.36
|
10
|
Reliance Industries Ltd. (RIL)
|
10.50
|
10.00
|
9.50
|
9.00
|
8.50
|
4.32
|
DIVIDEND YIELD (%)
|
|||||||
SL
|
Company
|
Net Profit (Last Year) Rs.Cr.
|
Dividend Paid (last 5Y Avg.)
|
Dividend Payout (%)
|
Current Market Price (Rs.)
|
Divided Per Share (Last 5Y Avg.)
|
Dividend Yield (Last 5Y Avg.) %
|
1
|
Coal India Limited (CIL)
|
16,343.53
|
12,771.69
|
78.15
|
323.00
|
20.22
|
6.26
|
2
|
ONGC
|
16,003.65
|
7,999.39
|
49.98
|
195.00
|
9.35
|
4.79
|
3
|
Tata Consultancy Services (TCS)
|
22,882.70
|
7,902.30
|
34.53
|
2,340.00
|
40.30
|
1.72
|
4
|
ITC Ltd.
|
9,844.71
|
4,857.70
|
49.34
|
275.00
|
6.10
|
2.22
|
5
|
Infosys
|
15,786.00
|
3,882.00
|
24.59
|
953.00
|
47.15
|
4.95
|
6
|
NTPC Ltd.
|
10,242.91
|
3,520.82
|
34.37
|
170.00
|
4.27
|
2.51
|
7
|
Hindustan Zinc
|
8,166.58
|
3,481.66
|
42.63
|
323.00
|
8.24
|
2.55
|
8
|
NMDC
|
3,028.33
|
3,136.09
|
103.56
|
147.00
|
7.91
|
5.38
|
9
|
Hindustan Unilever Ltd. (HUL)
|
4,082.37
|
3,027.99
|
74.17
|
855.00
|
14.00
|
1.64
|
10
|
Reliance Industries Ltd. (RIL)
|
27,417.00
|
2,798.20
|
10.21
|
1,029.00
|
9.50
|
0.92
|