Introduction
Dividend is essentially a financial metric used to indicate a company's return-generation on a stock. It is how much a company pays out each year against its stock price. The dividend yield is calculated by dividing annual dividends paid per share by the price.
Since the dividend influences your investment return, high-dividend stocks are sought-after options for regular income and potentially high returns. It's worth noting, however, that such returns are market-adjusted and tend to fluctuate. In this blog, we uncover some of the best dividend-paying companies in India in 2024.
Start Investing with Free Expert Advice!
Top 10 dividend-paying companies in India
Here's a list of the best dividend stocks in 2024:
1. Coal India
Coal India plays a crucial role in the mining and production of coal within the country. Its current dividend yield is 4.84% at the share price of 526.35 as of 28th Aug, 2024. Its last declared dividend per share is Rs. 5 as of May 2024. The total dividend payout for FY24 is Rs. 25.50 per share.
2. Bank of Baroda (BoB)
As a major public sector bank, the Bank of Baroda plays upholds the banking sector in India. With a consistent history of dividend payments, its current yield is 3.04% at the share price of 249.85 as of 28th August 2024. Its dividend per share as last declared on May 2024 is Rs. 7.6, which equals the annual payout for the year.
3. Oil and Natural Gas Corporation (ONGC)
ONGC is the largest government-owned oil and gas explorer in India. At the current share price of Rs. 377.80 on 28th August 2024, ONGC provides a dividend yield of 3.74%. Its last recorded dividend per share as of May 2024 is Rs. 2.50, while the annual payout is Rs. 12.25 per share.
4. Infosys
As a leading multinational corporation in India, Infosys specialises in information technology services and consulting. This IT company offers a dividend yield of 2.37% at the current share price of Rs. 1,939.10 as of 28th August 2024. Its dividend per share, last updated in April, is Rs. 20. The annual payout for FY24 amounts to Rs. 46 per share.
5. ITC
ITC is a diversified conglomerate with, a dominating presence in the FMCG, hotel, paperboard, and agribusiness sectors in India. ITC currently offers a 7.26% dividend yield against the share price of Rs. 497.30 as of 28th August 2024. Its dividend per share, as updated on May 2024, is Rs. 7.50. The annual payout for the year comes down to Rs. 13.75 per share.
6. GSFC
Gujarat State Fertilisers and Chemicals Limited, established in 1962, is a prominent Indian manufacturer in the fertilisers and chemicals segment. Applicable to the current share price of Rs. 235.22 on 28th August 2024, GSFC offers a dividend yield of 1.7%. Its dividend per share, as updated on May 2024, is Rs.10. The annual payout for FY24 is at Rs. 4 per share.
7. REC Limited
Formerly known as the Rural Electrification Corporation Limited, REC Limited is a public sector company that finances power projects in India. The company, as per the current price of Rs. 618.55 on 28th August 2024 offers a dividend yield of 2.59%. Its dividend per share as of July 2024 is Rs. 3.50. Lastly, the annual payout for FY24 is R. 16 per share.
8. PTC India
PTC India, formerly known as the Power Trading Corporation focuses on providing power trading solutions and consultancy services in the energy sector. At the share price of Rs. 213 on 28th August 2024, the company offers a dividend yield of 6.38%. The last recorded dividend per share as of August 2023 is Rs. 7.80. The annual dividend payout for the FY24 is Rs. 13.60.
9. HCL Technologies
HCL Technologies is a leading Indian multinational IT services and consulting company. The dividend yield of HCL stands at 3.02% at the share price of Rs. 1,719.45 as of 28th August 2024. Its dividend per share as of June 2024 comes down to 0. However, the annual dividend payout for FY24 is Rs. 52 per share.
10. Power Grid Corporation
Power Grid Corporation is the largest power transmission company in India. The company has current yield of 2.59% on the share price of Rs. 618.55 on 28th, 2024. Its dividend per share, as recorded on July 2024 is Rs. 3.50. The annual dividend payout for FY24 stands at Rs. 16 per share.
Conclusion
A high dividend return is the most desired outcome out of a stock. These companies fulfil this criterion, being the top performers in their respective sectors. The attractive yields they offer enhance your investment returns. However, the dividend is not the only factor that enhances the potential of your stock. You want to look into the company's performance record and other assessment metrics to understand the risks and make an informed decision.
Financial Calculators: SIP Calculator | SWP Calculator | Compound Interest Calculator | EMI Calculator | FD Calculator | Retirement Calculator | Option Value Calculator | Inflation Calculator | Lumpsum Calculator
Popular Stocks: ICICI Bank Share Price | HDFC Bank Share Price | CDSL Share Price | UPL Share Price | TCS Share Price | BHEL Share Price | Trident Share Price | IRFC Share Price | Adani Power Share Price