Best Dividend paying stocks are an excellent way to invest in the stock market. Although they’re not as popular as high-yield bonds, dividend-paying stocks offer investors a way to earn a steady income from their investments.
They’re also known as “blue chip” stocks, because of their history of paying dividends and the fact that they tend to be bought by institutions such as mutual funds and pension funds.
Best Dividend paying need to be seen in correlation with the net profits. Some of the best dividend-paying companies use their profit judiciously. While rewarding the shareholders is good, the profit needs to be strategically reinvested in the company. This ensures growth and enables long-term wealth creation for investors.
In this article, we will mention the upcoming dividend-paying stocks and also discuss some important concepts related to dividends.
20 Best Dividend Paying Stocks in India
India is a country with a booming economy, and the Indian stock market has been growing at an impressive rate. However, some stocks pay dividends and are considered dividend-paying stocks.
The following list of best dividend-paying stocks in India includes both large institutions and smaller companies. Most of these companies have been around for many years, which makes them an excellent choice for investors who want to invest in a well-known company that will give them steady returns over time.
Here’s a list of the upcoming best dividend paying stocks :
Factors To Consider Before Investing In Best Dividend Paying Stocks
Here are a few things to keep in mind about upcoming dividend-paying stocks:
- What do the Ratios tell us
A very high payout or yield ratio would mean that a very less amount of profits is being reinvested. This can be derived easily from the formula. If the dividend is very high, this means the company is diverting lesser profit for reinvestment back into the business and more for dividend payouts.
- Analyzing Dividends
These ratios should only be used to analyze the dividend payout situation of the company and should not be the sole reason why you are or you are not investing in a company’s stock. Even the highest dividend-paying stocks can turn out to be bad investments in the future.
- The Yield Ratio is Dynamic
Share market price is a dynamic figure. It may change every second of a trading session. Therefore, dividend yield could also vary.
- Do Not Look at Absolute Dividend Numbers
Do not look at these numbers to make decisions. A dividend of Rs 100 per share doesn’t speak high about a company. And a dividend of Rs 10 per share doesn’t speak low of a company.
The Best dividend paying stocks may not necessarily be a good investment. You need to look at the company’s earnings, the number of outstanding shares, shareholders, and other metrics. And this is where the ratios come into play.
| S.No. | Company Name | Industry |
|---|---|---|
| 1. | Unilever | Consumer Goods |
| 2. | Mphasis | IT Consulting & Services |
| 3. | Tech Mahindra | IT Consulting & Services |
| 4. | Mahindra | Automotive |
| 5. | Larson and Turbo | Construction |
| 6. | Wipro | IT Consulting & Services |
| 7. | UPL | Agribusiness Chemicals |
| 8. | Tata Steel | Steel industry |
| 9. | Marico | FMCG |
| 10. | Infosys | IT Consulting & Services |
| 11. | Hero | Automotive |
| 12. | GAIL | Central Public Sector Undertaking (PSU) |
| 13. | Ambuja Cement | Cement Industry |
| 14. | ONGC | Central Public Sector Undertaking (PSU) |
| 15. | ITC | FMCG |
| 16. | Indian Oil | Central Public Sector Undertaking (PSU) |
| 17. | Coal India | Central Public Sector Undertaking (PSU) |
| 18. | Bharat Petroleum | Central Public Sector Undertaking (PSU) |
| 19. | NTPC | Central Public Sector Undertaking (PSU) |
| 20. | Indus Towers | Telecommunications Tower Company |
(Only the headline and picture of this report may have been reworked by the ShareMantras staff; the rest of the content is auto-generated from a syndicated feed.)