Investors in the stock market look for investing in the stocks that give good dividend in return. High paying dividend stocks are often the priority of the investors. The best dividend paying stocks are those companies that earn good profits. Dividends are paid to the shareholders of the company when the board approves to distribute the profits rather than using for another purpose like keeping profits for a “rainy day”, buying back stock, etc.
Now we shall have a look at the best dividend paying stocks for the long-term.
Top Dividend Paying Stocks in India
#1 Vedanta Ltd.
The company belongs to metals sectors. The company is having a market cap of Rs. 74,213 crores. The company is having a dividend yield of 10.18%. The company has been paying dividends consistently and has a payout ratio of 36%.
#2 Hindustan Petroleum Corporation Ltd (HPCL)
Hindustan Petroleum Corporation Ltd is in the energy sector and has a market cap of Rs. 37, 013.65 crores. The dividend yield of the company is good at 8.21% and payout ratio at 17%. This makes HPCL one of the best dividend paying stocks for the long term.
#3 Indian Oil Corporation Ltd
Indian Oil Corporation Ltd belongs to the energy sector. It is one of the largest oil and marketing company of India with a market cap of Rs. 132,357.08 crores. The company has a dividend yield of 16.03% and a payout ratio of 66%.
#4 Power Finance Corporation Ltd
Power Finance Corporation Ltd is in the finance sector and has a market cap of Rs. 26,268.81 crores. The dividend yield of the company 10.37% and a payout ratio of 21.94%. The company has been paying consistent dividends and has a good management. Therefore, it is the best dividend paying stocks in India.
#5 Reliance Industries Ltd
Reliance Industries Ltd is one of the most reliable Indian company stock for the long term. The company functions in the petrochemicals sector and has a market cap of Rs. 143,323 crores. The dividend yield of the company is .51%. The long past record of distributing dividend among the shareholders makes it a top dividend paying stock.
Also Read – Best Stocks for Long Term Invest in India
#6 Coal India Ltd
Coal India Ltd is in the energy sector with a market cap of Rs. 22,198.06 crores. The average dividend yield of the company for the last 5 years is 7.85 % which is very good. So long-term investors looking for high dividend paying stocks can invest in this stock.
#7 National Aluminium Company Ltd
National Aluminium Company Ltd works in the metal sector with a market cap of Rs. 12,689.68 crores. The dividend yield of the company is 7.16%. The consistent returns by the company make it a good stock for the portfolio in the long run.
#8 Hero MotoCorp Ltd
Hero MotoCorp Ltd is the leader in the Automobiles sector. The company has a market cap of Rs. 58,235.16 crores. The two and three wheeler manufacturer has a dividend yield of 3.31% and a payout ratio of 2%. With good management and good history, the company has been rewarding towards its shareholders. Therefore,Hero MotoCorp Ltd is one of the best dividend paying stocks for the long term.
#9 Castrol India Ltd
Castrol India Ltd works in the petrochemicals sector and has a market cap of Rs. 926.90 crore. The dividend yield of the company is 4.96% and a payout ratio of 68%. The company has consistently given a dividend to its shareholders over the years which makes it the one of the best dividend paying stocks.
#10 Hindustan Zinc Ltd
Hindustan Zinc Ltd is a metal sector company with a market cap of Rs. 110,956.88 crores. The dividend yield of the company is 7.04%. The payout ratio is 14% which is considered good. Therefore, it can be said that Hindustan Zinc Ltd is one of the high dividend paying stocks and can be kept in the portfolio for long-term for good returns.
#11 Infosys Ltd
Infosys Ltd is one of the leading information and technology company of India. The company has a market cap of Rs. 271,037.19 crores. The dividend yield of the company is 3.22% with a payout ratio of 9%. Infosys has been a wealth generator for shareholders over the years and it continues to do so. If you are looking for best dividend paying stocks for the long term, Infosys is the right choice.
The above are the few stocks that have been giving consistent returns in the form of a dividend to the shareholders. Apart from that, they have given incredible returns with the share price. The consistency in paying dividends suggest that the company is earning sufficient profits to distribute among the shareholders in the form of a dividend. However, before investing in any stock one must conduct fundamental and technical analysis of the stock because the stock market is subject to risk.
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I am Hitendra Dixit. I am a civil engineer, at the age of 47 I have changed my profession and came in to stock market. I got excellence award for best share market training institute in India. I provide training in live market, during training sessions I do trade with real money in front of members. Many of my members left their job and became a professional trader with my support and guidance.