Top 10 highest dividend paying stocks
In volatile times, most conservative and moderate equity investors rush towards high dividend paying stocks to be sure to make some money as they fear uncertain capital gains in these markets.
Some investors see regular dividends as a measure of health of the company. Initiating a dividend or increasing a dividend sends a positive signal, whereas cutting a dividend or omitting a dividend typically sends a negative signal to investors. In volatile times, most conservative and moderate equity investors rush towards high dividend paying stocks to be sure to make some money as they fear uncertain capital gains in these markets. While high dividend yield stocks can be a great investment, high dividend payout should not be the only factor to invest in a stock.
"Dividend investors also need to spend some time analyzing the financial strength of the company, its growth path, competitive standing, management efficiency, etc. before investing. High dividend yield stocks can be a great addition to any investor’s portfolio. However, they need to ensure that the company is worth investing in and avoid buying stocks solely on the basis of dividend yield," says Harsh Jain, Co-founder and COO, Groww.
We have taken out a list of top 10 dividend-paying stocks in different ranges of market capitalisation for those who understand the dynamics. Also, if a company has paid high dividends in the past does not guarantee similar payouts in future as well.
These companies shown below in different tables have been consistently paying dividends over the last five years. These companies have either sustained or increased their dividend pay out steadily in the last five years. The data was taken from Value Research, an independent research firm.
Highest dividend paying stocks with a market cap of over ₹15,000 crore
Highest dividend paying stocks with market cap below ₹5,000 crore. (Only those companies with a minimum market capitalisation of ₹500 crore were considered.)
Not all the companies paying high dividends may have healthy profit and loss account and balance sheet. Investors should not fall for a company merely on the basis of high dividend payouts. He or she should check several other factors to gauge whether the dividends are sustainable.
Source:- Livemint, Value Research.
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