What are Dividend Stocks and why should you buy them ?
Dividend is part of profit, company distributes among its shareholders. Dividend is distributed as a reward to shareholders. For regular income from stock you can buy dividend paying stocks.
Dividend is good source of regular income for investors. But, it is also important that you buy dividend paying stocks after some research. Because there are so many dividend paying stocks but do not have history of regular dividend payment.
There are some key features of Dividend Paying Stocks which make them special
Dividend Stocks are best stocks in Volatile market. Because Companies with good track record of dividend payment are less volatile. They keep paying dividend on regular intervals.
They only reduced dividend payment if there is some serious loss in company or company facing slowdown in its business.
Dividend payment are good source of regular income. So, you just need to buy good dividend paying stocks and they will keep giving you regular income. You need not to put any extra efforts. As a result Dividend paying stocks are always remain in demand.
Because everybody loves regular income with nominal or no efforts.
Company, with a long track record of dividend payment, are assumed to be safe for investors. Because, dividend is paid out of profit. if a company is paying regular dividend it means company is having good earning regularly. Because without regular income from business its hard for company to pay regular dividend.
So, these are the main features of Dividend paying stocks. Now, let’s check out the list of top dividend paying stocks in Indian Stock Market.
Here we have collected list of Top Dividend Paying Stocks having a good track record of regular dividend payments. List is updated as on May 2019
Company Profile: Graphite India is pioneer in manufacture of Graphite Electrode and among the top graphite electrode supplier at world level. As a result of every high dividend in FY19, Graphite India leading the list of best dividend paying stock in India in FY19
Recent Dividend announcement: Graphite India announced a dividend of Rs.35 / Share, Approval in AGM expected in end of July 2019
UFO Moviez India Ltd
Company Profile: UFO Moviez India Ltd is a Digital cinema distribution Network, engaged in providing digital cinema services and an in-cinema advertising platform. Now, UFO Moviez is at second number in the list of best dividend paying stocks in India in FY19
Recent Dividend announcement: UFO Moviez announced an Interim Dividend of Rs.27.5, Record date is 7th June 2019. Final Dividend of Rs.2.5, Record date will be announced in upcoming AGM
Company Profile: Vedanta Ltd is Indian Mining company, engaged in exploration and production of iron ore, zinc, aluminium, copper, oil and gas. Vedanta has history of giving regular dividend to its shareholders. So, Vedanta is at number 3 of dividend paying stocks.
Recent Dividend announcement: Vedanta announced a Dividend of Rs.17 / share and ex-date for dividend was 6th Nov 2018. 2nd Interim Dividend of Rs.1.85 Ex-date was 13th March 2019.
Company Profile: REC is a Navratna PSU under the Ministry of Power. REC is engaged in providing financial assistance to state electricity boards, state governments, central/state power utilities and private sector utilities. REC is at number 4 in list of dividend paying stocks.
Recent Dividend announcement: REC announced a Dividend of Rs.11 / share and ex-date was 11th March 2019.
Indian Oil Corporation Ltd (IOCL)
Company Profile: IOCL is Maharatna PSU of Govt of India. IOCL’s main business is refining, transportation and marketing of petroleum products.
Recent Dividend announcement: IOCL announced dividend of Rs.6.75/ share, Ex-date was 24th Dec 2018. Dividend for this year was low due to buyback plan along with dividend. As a result, IOCL is at number 5 in Dividend paying stocks list in 2019
Oil India Limited
Company Profile: Oil India is leading Indian National Oil Company. Oil India is in business of exploration, development and production of crude oil and natural gas. Oil India is a cash rich company and as a result Oil India is at number 6 in Dividend Paying Stocks List.
Recent Dividend announcement: Oil India has announced an Interim Dividend of Rs.8.5 / share and ex-date was 21st Feb 2019.
Hindustan Zinc Limited (HZL)
Company Profile: Hindustan Zinc is Indian Subsidiary of Vedanta Resources. HZL is second largest zinc producer in the world. HZL is at number 7 in Dividend Paying Stocks List.
Company Profile: PTC India is in business of Power Trading in India. PTC has regularly rewarded its shareholders with healthy dividend payments. PTC India is at number 8 in Dividend Paying Stocks List.
Hindustan Petroleum Corporation Limited (HPCL)
Company Profile: HPCL is Navratna PSU of Govt of India. HPCL is in business of refining crude oil and petroleum products marketing. So, HPCL is at number 9 in Dividend Paying Stocks List.
Recent Dividend announcement: HPCL has announced a Dividend of Rs.9.40 / share. Ex-date for dividend is 6th June 2019.
Indiabulls Housing Finance Ltd. (IBHFL)
Company Profile: Indiabulls Housing is part of Indiabulls Group. Indiabulls housing is the second largest private housing finance company in India. Indiabulls Housing is at number 10 in dividend paying stocks list
Recent Dividend announcement: Indiabulls Housing announced 4 times Interim Dividend in FY19 of Rs.10/ share each.
So, this is the list of 10 Best Dividend paying stocks in India. We all love Passive Income in which you put no effort or nominal effort but that asset generates regular income. Dividend paying stocks are best example of Passive Income.