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Best Highest Dividend Paying Stocks in India 2022

24 June 2022

For many investors, the amount of dividend that a company is paying is an important factor that they analyze before finalizing whether to invest in a company or not.

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.

Dividends 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. 

Before reading please note: This is not a recommendation that dividends should be considered foremost while making an investment decision. The market capitalization data is as per AMFI’s small-cap, mid-cap, and large-cap data for the period July – December 2021. 

10 Highest 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 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 best upcoming dividend-paying stocks:

S.No.

Company Name

Industry

1.

Britannia Industries

Food

2.

Balkrishna Industries

Tire Manufacturing

3.

Punjab National Bank

Banking

4.

Dalmia Bharat

Conglomerate

5.

Polycab India

FMEG

6.

Dr Lal PathLabs

Healthcare

7.

Supreme Industries

Plastic Processing

8.

Union Bank of India

Banking

9.

Indian Hotels Company

Hospitality

10.

Happiest Minds Technologies

IT Consulting & Services

Note:

  • The market capitalization of stocks is more than Rs 2,000 crores. This is as per AMFI classification (Jul-Dec 2021)
  • The top 10 stocks as per market capitalization have been mentioned in the list.
  • Source considered BSE
  • The list was last updated on June 17, 2022.

Factors To Consider Before Investing In 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 highest 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.

10 Highest Dividend-Paying Stocks in India Recently: Performance Overview

1) Britannia Industries

Founded in 1918, Britannia Industries Limited is primarily involved in the manufacturing and selling of various food products. Its product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk, and yoghurt.

Britannia Industries has announced a final dividend of Rs 56.5. The ex-date for the dividend is 20 June 2022. The market capitalization of the company: Rs 89,247.09 cr.

2) Balkrishna Industries

Balkrishna Industries Limited is an India-based company engaged in offering pneumatic tires. The Company offers tires, tubes, and tire flips. It focuses on the manufacture of a range of off-highway tires (OHT). These tires are mainly meant for agricultural, industrial, and construction, earthmover and port, mining, forestry, lawn and garden, and all-terrain vehicles (ATV).

Balkrishna Industries has announced a final dividend of Rs 4. The ex-date for the dividend is 24 June 2022. The record date is 27 Jun 2022. The market capitalization of the company: Rs 45,843.36 cr.

3) Punjab National Bank

Punjab National Bank (the Bank) is an India-based bank. The Bank’s segments include Treasury, Corporate/Wholesale banking, Retail banking, and Other banking operations. The Treasury segment includes the entire investment portfolio and trading in foreign exchange contracts and derivative contracts.

The Bank provides various banking services, such as agriculture banking, retail banking, treasury operations, corporate banking, merchant banking, non-resident Indian (NRI) services, depository services, digital banking services, and mutual funds. Its depositary services include current deposits, savings deposits, term deposits, recurring deposits, Capital Gain Account Scheme, and Gold Monetization Scheme.

Punjab National Bank has announced a dividend of Rs 0.64. The ex-date for the dividend is 22 June 2022.  The market capitalization of the company: Rs 43,675.28 cr.

4) Dalmia Bharat 

Dalmia Bharat Limited is an India-based cement manufacturing company. The Company is principally engaged in the business of manufacturing and selling cement and its related products and refractory products.

The Company’s products include Ordinary Portland Cement (OPC), Portland Slag Cement (PSC), Portland Pozzolana Cement (PPC), Portland Composite Cement (PCC), and other speciality cement. Its speciality cement includes sulphate resisting portland cement, railway sleeper cement, oil well cement, and special cement for airstrips and nuclear power plant construction.

Dalmia Bharat has announced a final dividend of Rs 5. The ex-date for the dividend is 23 Jun 2022. The record date is 25 Jun 2022.  The market capitalization of the company: Rs 38,218.05 cr.

5) Polycab India 

Polycab India Limited is engaged in the business of manufacturing and selling wires and cables, and fast-moving electrical goods (FMEG) under the POLYCAB brand. It operates through three segments: Wires & Cables, Fast moving electrical goods (FMEG), and others. Its Wires & Cables segment manufactures and sells electric wires and cables.

Its FMEG segment is an electric consumer durable business, which consists of businesses covering electric wiring accessories and electric appliances. Its Copper segment is engaged in manufacturing, selling, and job work on copper rods and wires.

Its Other segment consists of engineering, procurement, and construction, business which includes design, engineering, supply, execution, and commissioning of power distribution. 

Polycab India has announced a dividend of Rs 14. The ex-date for the dividend is 21 Jun 2022. The market capitalization of the company: Rs 33,210.89 cr.

6) Dr Lal PathLabs

Dr Lal PathLabs Limited is engaged in providing diagnostic and related healthcare tests and services. The Company is also engaged in running laboratories for carrying out pathological investigations of various branches of biochemistry, haematology, histopathology, microbiology, electrophoresis, immunochemistry, and other pathological and radiological investigations.

Dr Lal PathLabs has announced a final dividend of Rs 6. The ex-date for the dividend is 22 Jun 2022. The record date is 23 Jun 2022. The market capitalization of the company: Rs 30,731.81 cr.

7) Supreme Industries

Found in 1942, Supreme Industries Limited is an India-based plastic products manufacturing company. The Company has approximately 25 manufacturing facilities spread across the country, offering a comprehensive range of plastic products in India.

Its Consumer Products division is engaged in furniture. Its Industrial Products division offers industrial components, material handling systems, pallets-roto moulded crates, pallets and garbage bins, and composite liquefied petroleum gas cylinders. 

Supreme Industries has announced a final dividend of Rs 18. The ex-date for the dividend is 21 June 2022.  The market capitalization of the company: Rs 28,412.81 cr.

8) Union Bank of India

Union Bank of India is an India-based banking company. The Company’s segments include Treasury Operations, Corporate and Wholesale Banking, and Other Banking Operations.

The Company offers products in three categories, including personal, corporate loans, and international. Its personal products include accounts and deposits, loans, which include retail, micro, small and medium enterprises (MSME), wealth management, financial schemes, and lockers/other services.

Union Bank of India has announced a final dividend of Rs 1.9. The ex-date for the dividend is 22 June 2022. The market capitalization of the company: Rs 27,729.68 cr

9) Indian Hotels Company

The Indian Hotels Company Limited is a holding company. The Company is engaged in short-term accommodation activities, restaurants, and mobile food service activities.

The Company is primarily engaged in the business of owning, operating, and managing hotels, palaces, and resorts under various brands, including Taj, SeleQtions, Vivanta, The Gateway, Ginger, Expressions, ama Stays and Trails, and TajSATS. It also operates restaurants, food, and beverage business.  It owns a portfolio of 232 hotels, including 61 under development globally across four continents, 12 countries, and in over 100 locations. 

Indian Hotels Company has announced a dividend of Rs 0.40. The ex-date for the dividend is 22 Jun 2022. The market capitalization of the company: Rs 21,534.49 cr

10) Happiest Minds Technologies 

Happiest Minds Technologies Limited is an India-based digital transformation information technology (IT) consulting and services company. The Company's segments include Infrastructure Management & Security Services (IMSS), Digital Business Solutions (DBS), and Product Engineering Services (PES).

IMSS provides continuous support and managed security services for mid-sized enterprises and technology companies. It also offers solutions across the spectrum of various digital technologies.

Happiest Minds Technologies has announced a final dividend of Rs 2. The ex-date for the dividend is 23 June 2022. The market capitalization of the company: Rs 19,790.94 cr

Point to Note

These may be the top dividend-paying stocks in India.  Keep in mind, that this should not be the only reason for picking a stock.

Companies may also pay dividends if they are making losses. There are a host of other factors you need to look at like profit history, business outreach, debt conditions, management quality, etc. Do your research to make an informed decision.

Happy Investing!

Disclaimer: This article is only for educational and informational purposes about Upcoming Dividend Paying Stocks. Investors are advised to invest in stocks after thorough research and based on their investment goals. 

To read the RA disclaimer, please click here.
Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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