There are two ways of earning from the stock market if you choose to invest in the equity category. The first one is capital appreciation, and the second is dividend payouts. So, what is a dividend? And which are the best companies you can invest in and get good and regular dividend amounts? Let’s find out!
First Off, What is Dividend?
A dividend is a part of a company’s profits paid to the people who own shares in it. The company’s board of directors decides the amount, frequency, and when it should be paid.
It is a good idea to invest in stocks that pay dividends as it helps you enjoy the dual benefits of capital appreciation and a flow of income by way of dividends.
Top 5 Dividend Paying Companies in India
Following is the list of the stocks of the top 5 companies which pay dividends to their shareholders and which you can consider for online stock investing:
Bajaj Auto Ltd: Bajaj Auto share is one of the leading manufacturers of two-wheelers and three-wheelers in India. It’s rocked the electric two-wheeler space with its launch of the legendary ‘Chetak,’ which could be a long-term growth driver for the company. Bajaj Auto announced an equity dividend of 1400.00 per cent, or INR 140 per share, in the fiscal year 2022.
GAIL: GAIL is another good pick in the segment of dividend-paying shares. The government-owner natural gas producer is now expanding into downstream industries, such as the production of petrochemicals and liquefied petroleum gas (LPG). GAIL declared two interim dividends of INR 4 and INR 5 per share in 2021-2022.
Bharat Petroleum Corp Ltd: The highest honours in the petroleum industry have been bestowed upon the Bharat Petroleum Corporation. During the last financial year, the company paid dividends four times to its shareholders: INR 35, INR 23, INR 5, and INR 5 per share.
ITC Ltd: ITC Ltd began as a cigarette manufacturing company with brands such as Flake, Goldflake, and Classic under its brand name. The company has no debt and a substantial tangible net worth of over INR 60,899 Crore. Last year, the company paid two dividends of INR 5.75 and INR 5.25 per share.
Hindustan Zinc Ltd: One of the world’s largest zinc-lead miners and zinc-lead smelters. It has a 78 per cent market share by volume in the domestic zinc market. In FY21, the company paid a dividend of INR 18 per share.
A smart dividend investor seeks a company that can pay out consistent dividends for many years without fail. A bad market, slowdown, or recession should not prevent good dividend companies from paying their shareholders dividends. While online stock investing, choose the companies that pay dividends according to your regular income flow requirement.