All you need to know about High Dividend Stocks:
Before talking about dividend stock let us understand what is Dividend, A dividend is the company’s earnings distribution to its shareholders which will be decided by the company’s board of directors. Dividends are often given quarterly in the form of cash or in the form of reinvestment in additional stock.
Where dividend stocks are the stock of the company that pays large dividends from the profit generated on a regular basis to its stake holders. In most of the cases, profitable corporations anticipate that stock price will remain static, so they declare huge dividends to shareholders while also attract new investors which may lead in increasing stock price. Dividend paying will depend on the companies some will pay in the form of total dividends and few pay interim dividends more than once each year. If company is paying dividends regularly it signifies that they are generating enough profits and they have strong financial positions.
However, before investing there are certain factors that you need to keep in mind as an investor. Not all dividend paying stocks worth to invest in. First and foremost, thing you need to look into is Dividend pay-out ratio that is amount paid to the shareholders from the company’s profits and other factor is growth in dividend payments. There is no point in investing in the companies which are announcing the high dividend in a year and later reducing the dividend pay and also companies which are red flag in their growth still giving dividend.
Following are some of the high dividends paying stocks in 2023
NMDC
NMDC Limited is a public sector enterprise and India's largest iron ore producer. It is headquartered in Hyderabad, Telangana. The company operates mines in Chhattisgarh and Karnataka and also has a diamond exploration unit in Madhya Pradesh. The company has been giving a dividend of 12.6% as of December 2022.
SAIL
Steel Authority of India Limited (SAIL) is a public sector enterprise and India's largest steel producer. It is headquartered in New Delhi, India, and operates steel plants in various parts of the country, including West Bengal, Chhattisgarh, and Jharkhand. The company has a significant market presence and plays a crucial role in meeting the demand for steel in India. As of 2022, the company has given a dividend yield of 9.98%.
VEDANTA
Vedanta is a global diversified metals and mining company headquartered in India. It produces a range of metals including zinc, lead, silver, copper, iron ore, and aluminum. Vedanta operates in various countries such as India, Zambia, South Africa, Namibia, and Australia. The company's dividend yield as of December 2022 was around 28%.
INDIAN OIL CORPORATION
IOCL is a state-owned oil and gas company in India. It is the largest commercial oil company in India. It possesses 32% of the total refining capacity of India. Presently the company has 15,000 Km of pipeline capacity. The company fulfils its crude oil requirement by importing crude oil across the world. As of 2022, the company’s dividend yield is 10.7%.
REC LTD
REC LTD is a public sector company IN India and it is the first Indian PSU to raise money from the international markets through green bonds listed on London Stock Exchange in 2017. The proceeds of green bonds are applied for the financing of eligible green projects as per the climate bond standards. As of 2025, the company has issued a dividend of 10%.
Conclusion
Though Dividends are good way to get returns on your investment don’t get attracted only for more income always ensure that you invest on a stock which have strong financial and fundamental base. Another important factor to be considered is that you have to pay tax on the dividend earnings.
Niveshartha
January 06, 2023
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