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Top 10 Dividend Paying Stocks

Top 10 Dividend Paying Stocks
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Are you looking forward to a passive income? The dividend is one of the best options for a passive income.

All you need to do is invest in certain dividend-paying stocks and it will become a regular source of income that is too passively.

There is a stressed situation in the market where Sensex and nifty are continuously on a decline mode considering a tone of factors. But, the companies making a profit are still performing well and paying dividends on time.

What is Dividend?

The biggest advantage of investing in good companies is that they pay dividends. The dividend is a part of the profit which is paid to the owners as in the end it’s their money using which the business is making money. So, if it is a good company, definitely it will make money and that money is paid out to the shareholders. And, in the long run, if you have accumulated a lot of shares of a good company that pays a regular dividend. This regular dividend can become a source of passive income for you in the long run.

dividend

Top 10 Dividend Paying Stocks

Dividend Yield is the ratio of dividend with respect to its Market Price in terms of percentage. So, let’s suppose a company declares a dividend of Rs 15 per share and is trading at a price of Rs 450 per share, the dividend yield would be 15/450 x 100 = 3.33%.

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Here is a list of the highest dividend-paying stocks as of May 2022.

PNB Gilts – 15.38%

Having a Market capitalization of about 1100 crores, it’s a really small-cap stock but in terms of dividend yield, it ranks number one in the list as we are discussing the companies paying the highest dividends. The stock is trading at a Price Earning Ratio of 7.30.

Vedanta – 14.32%

Vedanta is trading at a price of Rs 350 with a PE of about 6.5 but is paying really well in terms of dividends. It is a large-cap company with a market cap of more than 1 lakh crores.

Hinduja Global – 12.71%

Hinduja Limited is again a very small company with just a market cap of about 4000 crores but again pays a dividend of about 13%.

REC Ltd – 10.97%

REC Limited is not a small company but it has the lowest PE on this list. It’s a company that pays a regular dividend becoming a cash cow for the government to get dividends. This time it happens to be an 11% dividend on REC limited.

NMDC  – 10.71%

NMDC is also a safe and secure giant which is ready to pay its investors a dividend of as high as 11%.

PFC – 10.10%

Another Cash cow giving a dividend yield of 10% is ready and goes along with REC. Both having the power segment in common go hand in hand.

Other Companies Paying almost 10% dividend yield are as follows:

  • Allsec Tech – 9.93%
  • IOCL – 9.83%
  • Coal India – 9.58%
  • PTC India – 9.05%
S.No. Name CMP Rs. P/E Mar Cap Rs.Cr. Div Yld %  NP Qtr Rs.Cr. Qtr Profit Var % Sales Qtr Rs.Cr. Qtr Sales Var % ROCE % Payout ratio % Profit Var 3Yrs %
1. PNB Gilts 65.00 7.30 1170.07 15.38 49.05 305.27 241.91 31.43 5.26 54.31 44.77
2. Vedanta 314.25 6.12 116920.53 14.32 5799.00 -13.80 39822.00 41.18 32.30 89.03 40.17
3. Hinduja Global 877.50 6.14 3662.51 12.71 163.76 151.82 802.93 22.11 23.17 24.85 20.78
4. REC Ltd 115.90 2.33 22860.39 10.97 2773.44 22.83 10037.05 10.48 9.29 29.96 23.49
5. NMDC 137.60 3.88 40325.14 10.71 2049.81 -5.01 5873.77 34.87 29.59 36.23 18.12
6. Power Fin.Corpn. 106.40 2.04 28077.47 10.10 3580.26 23.73 19175.75 4.02 9.45 22.47 20.66
7. Allsec Tech. 453.20 21.64 690.68 9.93 13.16 48.37 83.22 16.08 17.05 65.09 -14.80
8. I O C L 122.10 4.18 114946.88 9.83 6143.08 40.93 165339.04 62.36 14.85 50.92 -0.81
9. Coal India 167.05 6.75 102887.80 9.58 4558.39 47.74 28433.50 20.04 46.07 77.64 21.74
10. PTC India 82.85 5.19 2453.91 9.05 177.11 -2.95 5472.83 -8.86 10.33 49.48 32.21

These are the 10 best dividend-paying stocks to consider right now. The majority of the companies in this list are owned by the Government.