As an investor, you are always on the lookout for opportunities to maximise your returns. Dividend-paying stocks have long been a source of passive income that can increase your income. As the month of September 2024 kicks off, this might be an excellent time to take a look at the top dividend-paying stocks in India that may help boost your portfolio.
1. Indian Oil Corporation Ltd (IOC)
Market cap (In ₹ crore) - 2,49,719.98
5Y CAGR (%) - 16.49
Dividend yield (%) - 6.62
Dividend payout (%) - 0.4
Indian Oil Corporation Ltd is a heavyweight in the energy sector and has consistently rewarded its shareholders with lucrative dividends. As India's largest oil refining and marketing company, IOC boasts a strong bottom line based on powerful revenues coming in from its sprawling network of refineries and fuel-dispensing stations. IOC is expected to continue its healthy dividend payout in September 2024, driven by strong cash flows and strategic importance in the national energy landscape.
2. Vedanta Ltd
Market cap (In ₹ crore) - 1,80,902.28
5Y CAGR (%) - 27.83
Dividend yield (%) - 6.07
Dividend payout (%) - 2.59
Vedanta Ltd is a diversified natural resource company that rejoices in paying regular dividends to its shareholders. Operating across zinc, lead, silver, iron ore, and aluminium, Vedanta’s diversified revenue streams act as a cushion against sector-specific downturns. Therefore, Vedanta's prospects look very good as far as dividend-payment for September 2024 is concerned, given strong commodity prices and operational efficiency. If you are looking for a stock that may offer the twin benefit of capital appreciation along with regular income, then Vedanta could be a decent pick.
3. Bharat Petroleum Corporation Ltd (BPCL)
Market cap (In ₹ crore) - 1,54,646.03
5Y CAGR (%) - 15.03
Dividend yield (%) - 5.8
Dividend payout (%) - 0.33
Bharat Petroleum Corporation Ltd is another heavyweight in the oil and gas sector that has kept its excellent track record of paying dividends. With such wide refining capability and its selling network, BPCL would be in a very good position to generate cash inflow. Given the steady earnings and sustained government support, the dividends of BPCL are expected to be strong in September 2024. It can be an ideal stock if you're looking for a mix of government support and robust financial performance.
4. Coal India Ltd
Market cap (In ₹ crore) - 3,25,114.73
5Y CAGR (%) - 22.79
Dividend yield (%) - 4.83
Dividend payout (%) - 0.42
The world's largest coal-producing company, Coal India Ltd is among the most fantastic dividend paying companies present in India. This near-monopoly that it has in the coal industry in India promises a regular inflow of revenues and, consequently, handsome dividends to its shareholders. In September 2024, one can safely rely on Coal India to continue with its very high yield based on its dividend payout. The stock can be a good alternative for income investors.
5. Oil and Natural Gas Corporation Ltd (ONGC)
Market cap (In ₹ crore) - 4,14,646.00
5Y CAGR (%) - 21.74
Dividend yield (%) - 3.72
Dividend payout (%) - 0.31
Oil and Natural Gas Corporation Ltd is the other giant in the Indian energy sector, and it is famous for rewarding handsomely under the dividend distribution policy. Being the leading oil and gas exploration and production company, ONGC goes forward with the grease of strong upstream operations and government support. Since its shareholders' reward consistency is persuasive, September 2024 should not be an exception. If you are searching for a decent dividend-paying stock with strong government links and stable returns, then ONGC is the one to go for.
6. Power Grid Corporation of India Ltd
Market cap (In ₹ crore) - 3,09,989.13
5Y CAGR (%) - 23.67
Dividend yield (%) - 3.38
Dividend payout (%) - 0.67
The backbone for power transmission in India, Power Grid Corporation of India Ltd, is another reliable dividend-paying stock. This is because, being a monopoly in the power transmission business and performing on an ongoing basis, Power Grid has always remained a favourite for investors seeking regular income. Strong dividend payments by Power Grid are expected to continue for September 2024, making it a safe bet if you are looking for stability and reliable income.
To sum it up
Investing in dividend-paying stocks is a smart strategy, especially if you prioritise consistent income alongside potential capital appreciation. The stocks mentioned—Indian Oil Corporation Ltd, Vedanta Ltd, Bharat Petroleum Corporation Ltd, Coal India Ltd, Oil and Natural Gas Corporation Ltd, and Power Grid Corporation of India Ltd—represent some of the best options for September 2024.
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