Do you usually ignore high dividend paying stocks in India? Normally retail investors buy stocks in anticipation that the price of the stocks appreciates. People tend to enter the stock market for a quick return and rather making a profit they end up losing their hard earned money.
Stock market analyst and other researchers always say that 90% of the traders lose money in the stock market. Day trading is really a risky one for you if you are not a pro as they check lots of parameters at once before entering into a trade. So, it is better to avoid day trading if you are not a skilled trader or not relying on the stock market analyst.
Instead of day trading, you can focus on long-term investment or positional trading. Investment for a longer period will always provide you return depending on the stocks. However, positional trading is also a bit risky and still, you can hold it till you are in profit. I suggest you invest in stocks for a longer period as you will get the dividend and along with that you will enjoy the price appreciation.
Veteran investors like Warren Buffet, Rakesh Jhunjhunwala and others big bulls make millions from the stock market. They remain invested in strong fundamental stocks for a very long-term and taste the dividends in millions. These investors always focus on good and high dividend paying stocks. If they become rich, then what is the harm to follow their footprints.
So, I have screen 10 best and high dividend paying stocks that help you to succeed in the equity market. All you need is patience to hold them and success in equity market follows you soon. In fact, your investment capital will grow over the years and also you will enjoy the fruits of dividend too.
Check out 10 best high dividend paying stocks in India
Although, there are many other stocks that also pay a good dividend. However, I screened 10 stocks that I have invested especially for high dividend yield.
Hindustan Zinc (9.38%)
One of the high dividend paying stocks in India is HindZinc or Hindustan Zinc. Currently, it provides 9.38% of dividend and its P/E ratio is 15.91 that is also low as compared to its peer competitors. It has given 100% dividend on face value that is Rs. 2/- per share. Almost 65% of its shares are with the promoters of the company that also suggest the confidence of promoters in the company.
SJVN or Sutlej Jal Vidyut Nigam is another high paying dividend stocks and pays around 7.89%. It P/E ratio is 9.34 and face value is 10. It is also a part of Bharat 22 ETF and promoters holding is around 90%. SJVN is one of my favorites stocks as Government of India is also promoting and bringing reforms on green energy.
Coal India (7.36%)
Coal India has currently yielded a dividend of around 7.36% and its P/E ratio is 11.66 which is also low. It also gets a place in Bharat 22 ETF and more than 78% of its shares are kept by promoters of Coal India. In fact, a few months back I have recommended Coal India as multibagger stock also.
HPCL or Hindustan Petroleum Corporation is also a high paying dividend stocks. It yields a dividend of around 7.06% and its P/E ratio is 10.29. Promoters of HPCL holds shares of above 50%. HPCL is one of the top oil marketing company and 4th largest in terms of the market cap of Rs 65K crore in India.
NLC was previously known as Neyveli Lignite Corporation and has been awarded as a Navratna Company by Government of India. Currently, NLC yield dividend of 6.89% and P/E ratio is 6.67. Moreover, more than 89% of its shares are kept by the NLC promoters. Hold this share for long-term, and you won’t regret this. It will grow like a giant in near future and I already recommend it as a multibagger jackpot share.
NHPC is the third largest power producer in India having a market cap of more than 27K crore. It is also one of the high dividend paying stocks of 6.68% in India and its P/E ratio is 9.91. Promoters stake is around 74% in NHPC and it is also one of the components of Bharat 22 ETF.
BPCL is third largest oil marketing company and market cap is around 100K crore. It yields a dividend of 6.43% and P/E ratio is 13.70. Promoters holding is just above 54% in BPCL.
Vedanta is 2nd largest producers in mining & minerals sector and having 114K crore of market cap. Its P/E ratio is 10.39 and yields a dividend of around 6.30%. Promoters are holding around 50% of stakes in Vedanta and I have recommended this stock as multibagger jackpot stock.
REC or Rural Electrification is 2nd largest lending institutions having a market cap of 32K crore. It also yields a high dividend of 5.87% and its P/E ratio is 5.12. Promoters of REC are holding just above 58% of the stake and is also included in the list of Bharat 22 ETF.
Chennai Petroleum (4.89%)
Chennai petroleum yields a dividend of around 4.89% and its P/E ratio is 6. It has a market cap of above 6K crore and promoters of Chennai Petro are holding more than 67% of stakes.
So, I have just posted 10 best high paying dividend stocks in India and they are fundamentally strong stocks to invest. However, I keep changing the list depending upon their performance on regular basis.
If you want to add or know any other high paying dividend stocks that I may be missed out, then comments below. If you like this post then do share it on your social networks like Facebook, Twitter, Google+, and any others networks.
Author: Ratan Kumar
Ratan Kumar, an enthusiast stock market trader & blogger. Forecasting stock market moves with the use of technical analysis since 2008. For the technical trader & investor, new or experienced, he provides legitimate and valuable advisory from day trading to long-term investment horizon and helped thousands of investors to make money out of stock market.