Selling in the equity market is hurting investors. Many stocks with strong fundamentals are also breaking down continuously. In such a situation, keep an eye on the stocks giving high dividend.
Best Dividend Paying Stocks: When the Kovid-19 epidemic came on the verge of ending, inflation became a problem for the whole world. The war between Russia and Ukraine added to the problems. The prices of commodities to energy reached the sky all over the world. In countries like America and Britain, inflation is at the peak of 4 decades. To control inflation, central banks around the world have to adopt a strict approach to monetary policy. Due to all this, there is selling pressure in the equity market. Investors’ money is constantly sinking in the big fall of the market.
Selling in the equity market is hurting investors. Many stocks with strong fundamentals are also breaking down continuously. In such a situation, shares of high dividend paying and fundamentally strong companies can protect the portfolio of investors. They not only have the ability to beat inflation, but due to the high dividend yield, they help in reducing the risk in bad times.
What is Dividend?
Some companies keep giving some part of their profits to their shareholders in the form of dividend from time to time. Such companies are also called dividend yield stocks. It is not necessary for a company to pay dividend. It is entirely the decision of the company whether it will give dividend to its shareholders or not.
These companies give dividend
There are many companies in the country that pay dividend to their shareholders on a regular basis. Here is the list of companies paying high dividends.
Indian Oil Corporation (10.4% Dividend Yield)
Coal India (8.5% Dividend Yield)
Bajaj Auto (3.84% Dividend Yield)
GAIL India (5.95% Dividend Yield)
Hindustan Zinc (6.25% Dividend Yield)
SJVN (8% Dividend Yield)
ITC (4-4.5% Dividend Yield)
SBI (1.6% Dividend Yield)
BPCL (4.9% Dividend Yield)
How is profit, calculation
Think of it like this…..
Total Shares: 2000
Investment Amount: 4,00,000 (Rs.200 per share)
1-year return: 15%
Return on investment: 60 thousand rupees
Dividend: Rs 5 per share
Total profit: 60,000+10,000 = Rs.70,000
Are all dividend shares safe?
According to the information given on the website of different brokerages, only strong and profitable companies give dividend. But it is not necessary that all dividend paying stocks give good returns. If there is a negative issue with a company, then investing in it should be avoided. Good dividend paying companies can be identified by looking at their financial position. Those companies can be selected for investment, in which profits are coming. The returns of good companies can also be slow. But paying dividends can cover returns in the long run.