2 Nifty 50 Cos. Paying Higher Dividends than FD Interest!
While investing in dividend stocks, investors need to make sure that they aren’t just running for high yields but the company should also be fundamentally strong so that the payouts can sustain for a long time. Generally, large-cap companies do not trade at a high yield but often times investors get the opportunity to grab a few bargains.
In case you are building up your dividend portfolio, here are 2 high-quality stocks that are trading at the highest dividend yield.
Coal India Limited
Coal India Ltd (NS:) needs no introduction and often tops the list of high dividend payers among blue chips. It is a coal mining government-owned company, having a market capitalization of INR 1,46,488 crores. In FY23, the company recorded the highest-ever revenue of INR 1,44,802.57 crores and consequently posted a record net income of INR 28,165.19 crores.
The stock is a gem for dividend lovers and it hasn’t skipped a single year for paying dividends in over a decade. Currently, Coal India shares trade at a very high dividend yield of 9.78%, which is the highest among Nifty 50 stocks. The company has also maintained a healthy dividend payout ratio of over 0.7 (average) for the last three fiscal years.
Oil and Natural Gas Corporation Limited
Oil And Natural Gas Corporation Ltd (NS:) is also a government-owned entity. It is the largest oil and explorer in the country, having a market capitalization of INR 2,08,329 crores and provides raw materials for downstream companies such as IOC, BPCL, HPCL etc.
The company is yet to declare its Q4 FY23 earnings, but it is already sitting at a record revenue of INR 6,86,841.19 crores (TTM) and a subsequent profit of INR 42,275.29 crores in the same period. It is trading at a hefty dividend yield of 8.45%. Although the dividend payout ratio is a bit moderate, the quality of earnings and consistency of dividends makes it a must-have in any dividend portfolio.
Investors also need to understand that these companies are pure cash machines and are only suitable for dividend seekers. Due to their very high payout, expecting a decent price appreciation over a long period of time might be too much to ask for as every payout gravitates the share price toward the south on account of corporate adjustment.
Read More: Portfolio: Large-Cap Gives a ‘13-Year-Long’ Breakout!
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While investing in dividend stocks, investors need to make sure that they aren’t just running for high yields but the company should also be fundamentally strong so that the payouts can sustain for a long time. Generally, large-cap companies do not trade at a high yield but often times investors get the opportunity to grab a few bargains.
In case you are building up your dividend portfolio, here are 2 high-quality stocks that are trading at the highest dividend yield.
Coal India Limited
Coal India Ltd (NS:) needs no introduction and often tops the list of high dividend payers among blue chips. It is a coal mining government-owned company, having a market capitalization of INR 1,46,488 crores. In FY23, the company recorded the highest-ever revenue of INR 1,44,802.57 crores and consequently posted a record net income of INR 28,165.19 crores.
The stock is a gem for dividend lovers and it hasn’t skipped a single year for paying dividends in over a decade. Currently, Coal India shares trade at a very high dividend yield of 9.78%, which is the highest among Nifty 50 stocks. The company has also maintained a healthy dividend payout ratio of over 0.7 (average) for the last three fiscal years.
Oil and Natural Gas Corporation Limited
Oil And Natural Gas Corporation Ltd (NS:) is also a government-owned entity. It is the largest oil and explorer in the country, having a market capitalization of INR 2,08,329 crores and provides raw materials for downstream companies such as IOC, BPCL, HPCL etc.
The company is yet to declare its Q4 FY23 earnings, but it is already sitting at a record revenue of INR 6,86,841.19 crores (TTM) and a subsequent profit of INR 42,275.29 crores in the same period. It is trading at a hefty dividend yield of 8.45%. Although the dividend payout ratio is a bit moderate, the quality of earnings and consistency of dividends makes it a must-have in any dividend portfolio.
Investors also need to understand that these companies are pure cash machines and are only suitable for dividend seekers. Due to their very high payout, expecting a decent price appreciation over a long period of time might be too much to ask for as every payout gravitates the share price toward the south on account of corporate adjustment.
Read More: Portfolio: Large-Cap Gives a ‘13-Year-Long’ Breakout!