Dividend Stocks

Dividend stocks are great for investors who want regular passive income from their equity investment. These are well established businesses because of which they earn good profit and are able to give regular dividend payouts to its shareholders.

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Passive source of income

Passive source of income

Potential for growth

Potential for growth

Stability

Stability

Diversification

Diversification

Best Highest Dividend Paying Stocks to Invest

Name
Div Yld
Price
M Cap
Analyst Rating
Target Price
Alpha
1Y Return
3Y Return
5Y Return
PE
Industry PE
PB
Beta
Net Profit Qtr
Net Profit QoQ %
Net Profit YoY %
Net Profit 3Y Change %
Rev Qtr (in Cr)
Rev QoQ (in %)
Rev 1Y change %
Rev 3Y change %
Profit Mar Qtr
Profit Mar QoQ
Profit Mar 1Y Change%
Profit Mar 3Y Change%
Sector
M Cap
ROE
ROCE
EPS
Volume
imgFortis Malar Hospitals Ltd
91.29%

₹65.00

Small CapNANA-11.5%5.86%-5.13%22.6%2.6492.550.80.0154.05 Cr-1451.25%-392.76%-675.86%5.52-68.6%-31.34%-14.77%76.8%-4403.44%-526.42%-775.69%Healthcare119.48-6.99%-1.52%24.1648995
imgT.V. Today Network Ltd
38.68%

₹241.12

Small CapNANA-3.96%15.53%-18.81%-12.61%25.77169.821.30.8811.46 Cr-60.65%-51.39%-36.68%252.79-3.77%-5.58%2.45%10.05%-59.1%-48.51%-38.2%Consumer Cyclical1452.818.87%11.99%14.7997705
imgHathway Cable & Datacom Ltd
20.4%

₹25.22

Small CapNANA25.55%45.24%-14.9%0.74%40.39-34.490.751.1434.57 Cr54.68%51.89%-60.79%493.37-2.22%6.59%14.39%5.01%58.19%42.49%-65.73%Consumer Cyclical4074.781.7%2.29%0.5649958409
imgXchanging Solutions Ltd
16.78%

₹139.08

Small CapNANA-13.65%9.9%43.35%149.19%106.9336.144.011.2112.38 Cr-449.72%-69.49%-78.06%44.464.66%0%-10.89%7.85%-434.14%-69.49%-75.38%Technology1453.2130.05%32.21%1.234945747
imgL&T Finance Ltd
15.81%

₹185.85

Mid CapBUY195.618.66%37.87%91.65%61.41%19.5131.261.71.42553.02 Cr-13.51%50.81%144.2%3677.322.68%6.31%1.71%17.06%-15.76%41.86%140.1%Financial Services45379.8110.27%8.2%9.317478987
imgIDFC Ltd
15.29%

₹117.83

Small CapNANA-24.14%4.62%119.91%229.55%18.0231.261.321.2347.85 Cr65.61%6499.18%-526.04%353.2968.35%74.72%-54.91%2751.51%-1.62%3677.07%-1044.84%Financial Services18823.8221.46%21.72%26.523215112
imgIL&FS Investment Managers Ltd
13.56%

₹12.85

Small CapNANA25.33%53.58%99.53%251.94%40.8731.261.641.094.96 Cr121.43%29.57%-186.38%16.6-1.01%33.3%67.41%22.64%123.7%-2.79%-151.6%Financial Services397.8822.47%22.1%0.54950818
imgGloster Ltd
12.57%

₹824.90

Small CapNANA0%9.83%31.72%118.11%36.7688.10.560.497.68 Cr252.29%-16.68%177.93%184.9835.07%-3.22%43.5%7.66%160.82%-13.91%93.68%Consumer Cyclical895.055.65%7.3%49.73566
imgIndian Card Clothing Company Ltd
11.83%

₹276.15

Small CapNANA-6.13%25.82%32.98%177.12%20.5588.10.520.791.46 Cr-275.9%-98.03%-173.53%12.27-2.85%-0.6%7.83%5.67%-281.06%-98.02%-168.19%Consumer Cyclical163.742.19%2.84%6.316202
imgChennai Petroleum Corporation Ltd
11.35%

₹1,084.70

Small CapHOLD1090109.96%146.52%684.75%451.26%5.6850.20.561.31627.89 Cr71.89%161.2%-271.73%17720.181.98%76.82%106.09%4.59%68.55%47.72%-183.33%Energy15588.7964.62%41.94%237.162568328
imgCoal India Ltd
11.35%

₹497.75

Large CapBUY480.2785.29%115.55%238.24%115.36%9.1125.327.881.488640.45 Cr-14.91%61.84%68.41%34263.893.8%26.01%43.89%20.34%-18.02%28.43%17.04%Basic Materials305794.5889.54%67.45%45.647105954
imgForbes & Company Ltd
11.12%

₹624.05

Small CapNANA108.99%-7.48%175.25%377.86%157.77-54.143.650.723.39 Cr-13.74%-95.46%-156.71%87.08632.38%-14.13%-83.81%43.4%-88.22%-94.72%-450.36%Industrials815.865.3%8.08%61.34923

What are Dividend Stocks?

Dividend stocks are shares of companies that distribute a portion of their profits to shareholders on a regular basis, typically quarterly or annually. These payouts are a way for companies to reward investors for their ownership and can be seen as a sign of a company's financial health and stability. Investing in dividend stocks can provide a steady income stream, which is especially attractive for those looking for passive income. 

Upcoming dividend stocks often attract significant investor interest as they announce their dividend schedules and payout amounts. Stocks that pay dividends are generally viewed as less volatile and more reliable, making them a popular choice among conservative investors seeking both income and growth in their investment portfolios. Furthermore, companies offering consistent and growing dividends often signal strong cash flow and robust business operations, reinforcing investor confidence.
 

Features of Dividend Yeild Paying Stocks

  • Regular income

    Dividend stocks offer regular income to its shareholders. Dividend paying companies are a good investment option for the people who want a regular passive source of income along with good annual returns.

  • Stability

    Companies that consistently pay dividends are often well-established and financially stable. These companies tend to have a history of generating steady profits and cash flows.

  • Inflation Hedge

    Dividend paying stocks can also help an individual to hedge the risk of inflation. So therefore investing your money into dividend paying stocks can help you in saving your money from inflation.

Important ratios to consider before investing in Dividend Stocks

Invest in dividend stocks for reliable income, long-term wealth, and portfolio stability. Prioritize shareholder-friendly investments.

  • Dividend Yield

    Formula: Dividend per share / Price per share

    This ratio indicates the annual dividend income as a percentage of the stock's price. A higher dividend yield may suggest a better return on investment, but it's essential to ensure the yield is sustainable.

  • Payout Ratio:

    Formula: Dividends per share / Earnings per share (EPS)


    The payout ratio represents the percentage of earnings paid out as dividends. A lower payout ratio indicates that a company retains more earnings for growth or other purposes, while a higher ratio suggests that a significant portion of earnings is being returned to shareholders.

     

  • Return on Equity (ROE):

    Formula: Net income/Shareholder’s equity

    ROE measures a company’s profitability by comparing its net income to shareholder’s equity. A higher ROE indicates that, company can support sustainable dividend payments.

Points to consider before investing in Dividend Stocks

  • Dividend Yield

    Assess the dividend yield, indicating the annual dividend as a percentage of the stock price, to gauge potential returns.

  • Payout Ratio

    Consider the payout ratio, comparing the dividends paid to the earnings; a lower ratio suggests greater sustainability.

  • Market Conditions

    Be mindful of market conditions, as economic downturns or industry-specific challenges can impact a company's ability to sustain dividends.

Sectors Known for High Dividend Yields Stocks

Specific industries consistently deliver high dividend yields. 

  • Utilities are a frontrunner among these. They have regulated operations and consistent demand. These ensure a stable revenue stream.
  • REITs capitalised property and rent also give shareholders big dividends. The dividends reflect the sector's strong cash flow. The consumer staples sector has an enduring demand for essential goods. It offers investors resilience and reliable dividends.
  • Beyond these, the energy sector is prone to market swings. But it can bring significant returns for shareholders. This is because its products and services are essential.
  • Healthcare, providing essential services and products, is another sector where investors might find attractive dividends. But, it has its own set of challenges and volatility.

Each sector has unique attributes. They let it provide high dividends. This highlights how crucial sectoral performance is in dividend investing.

What is the Dividend Payout Ratio? 

When checking out those tempting, high-dividend yield stocks, diving deep into evaluating the dividend payout ratio is essential. Don't just get swayed by the impressive yield number; there's more to the story. A crucial thing to look at is the dividend payout ratio.

The dividend payout ratio shows what portion of a company's profit is paid to shareholders as dividends (expressed as a percentage). It's calculated by dividing dividends by net income. DPR = Dividends / Net Income. If it's over 100%, that's a warning sign. It could mean the company is paying dividends with borrowed money. This is not a sustainable strategy. 

Remember, the dividends rely on the company's long-term success. This success comes from its growth, stable revenue, and the strength of its sector. By delving into these aspects, you can determine if those high yields are a sign of strength or a distress signal. Take a peek at the company's history with dividends, too – were they consistent or all over the place?

Should you invest in Dividend Stocks?

Investing in dividend stocks can be a strategic move, offering a reliable income stream and potential long-term growth. Consider these stocks if you value stability, consistent returns, and a shareholder-friendly approach. Assess your financial goals, risk tolerance, and the specific characteristics of dividend-paying companies before making investment decisions in line with your overall portfolio strategy.

Check More Stocks

Name
Price
M Cap
Alpha
1Y Return
3Y Return
5Y Return
PE
Industry PE
PB
Beta
Net Profit Qtr
Net Profit QoQ %
Net Profit YoY %
Net Profit 3Y Change %
Rev Qtr (in Cr)
Rev QoQ (in %)
Rev 1Y change %
Rev 3Y change %
Profit Mar Qtr
Profit Mar QoQ
Profit Mar 1Y Change%
Profit Mar 3Y Change%
Sector
M Cap
ROE
ROCE
EPS
Volume
imgAdani Power Ltd

₹708.55

LARGE CAP168.37%188.95%581.99%1032.3%13.7530.126.881.82737.24 Cr-0.03%94.18%1540.09%13363.692.87%29.86%92.02%41.37%-2.81%49.53%754.11%Utilities273823.3855.41%30.81%542037346
imgTata Motors Ltd

₹1,024.45

LARGE CAP37.21%64.39%227.72%531.72%12.4146.3312.630.9217528.59 Cr145.31%1082.46%-344.36%119213.358.57%26.58%75.32%7.26%125.94%834.16%-239.39%Consumer Cyclical373253.1219.5%14.69%82.995845401
imgAdani Wilmar Ltd

₹333.95

MID CAP-42.8%-16.6%25.16%25.16%294.5297.755.041.06154.56 Cr-24.98%-69.17%-73.83%13238.043.19%-11.9%38.21%0.33%-27.3%-65.01%-81.06%Edible Oil43636.713.42%9.6%1.311230524
imgInfosys Ltd

₹1,707.05

LARGE CAP1.98%20.3%8.28%119.64%2736.147.660.787975 Cr30.46%8.88%35.14%37923-2.31%4.7%52.95%17.08%33.55%3.99%-11.64%Technology710723.4736.58%45.07%63.376942167
imgTata Steel Ltd

₹166.76

LARGE CAP20.67%43.26%34.31%260.22%-46.3429.781.431.46554.56 Cr6.21%-160.8%-159.95%58445.896.79%-5.83%46.63%-2.14%-0.55%-164.56%-140.88%Industrials210584.627.79%13.67%-3.9432631185
imgYes Bank Ltd

₹26.38

MID CAP21.57%44.63%88.93%-72.53%58.1817.941.091.25467.29 Cr92.63%-30.85%-104.48%9099.610.39%19.64%-29.42%2.74%74.5%-42.2%-106.34%Financial Services80219.291.51%NA0.26394334395
imgZomato Ltd

₹229.15

LARGE CAP160.66%177.57%76.56%76.56%556.182.050.77175 Cr26.81%-20.57%-59.3%35628.33%68.86%171.79%-13.72%17.06%-52.96%-85.02%Technology196373.940.17%0.25%-1.1651185834
imgITC Ltd

₹463.40

LARGE CAP-29.21%-2.82%122.57%69.42%27.9628.427.410.685187.22 Cr-3.95%6.54%55.06%17767.61-0.59%-0.08%43.85%29.28%-3.38%6.63%7.79%Consumer Defensive573321.2229.21%37.4%16.6216250741
imgWipro Ltd

₹559.70

LARGE CAP16.55%34.89%-2.73%115.53%26.8336.144.341.022858.2 Cr5.84%-2.24%2.25%22208.30.01%-0.8%44.93%12.38%5.82%-1.45%-29.45%Technology292981.5815.13%19.03%21.278048951
imgHDFC Bank Ltd

₹1,622.10

LARGE CAP-27.03%-3.35%6.71%35.52%17.9617.943.211.0617622.38 Cr2.11%20.88%68.77%124391.358.15%22.05%39.16%22.47%-5.58%-0.96%21.28%Financial Services1234570.0116.96%NA82.7116687703

Frequently Asked Questions

Refer to the above

Dividend stocks are well suited for someone who is looking for regular income from a portfolio with decent capital appreciation.

You can invest in dividend stocks through brokerage accounts, mutual funds, exchange-traded funds (ETFs), or dividend-focused investment strategies. Researching companies with a history of dividend payments and strong financials is essential.

 

No, not all companies pay dividends. Some companies reinvest their profits back into the business for growth, while others may prioritize share buybacks or debt reduction over dividend payments.

 

Risks associated with dividend stocks include changes in dividend policies, economic downturns impacting company profits, and stock price fluctuations. Additionally, high dividend yields may sometimes indicate financial distress or unsustainable payout ratios.

Yes, dividend payments can influence stock prices, with positive dividends often attracting investors and contributing to share price stability.

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