Top Dividend Paying Stocks | Equitymaster (2024)

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Dividend payout is measured by the amount of dividend a company pays in a year divided by the net profit for the year.

The market likes a payout that is high and stable or a payout that is growing. Companies paying high amount of profit as dividend are called high dividend stocks.

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CompanyCMP
(Rs)
Div Payout RatioMCap
(Rs m)
P/E
(x)
D/E
(Curr FY, x)
RoE
(5 yrs, Avg. %)
Profit CAGR
(3 yrs, %)
TECH MAHINDRA1,656.2147.31,620,11563.50.116.8%NM
VEDANTA453.9145.61,774,92519.02.824.4%NM
HUL2,934.096.06,893,58366.60.031.5%8.7%
ORACLE FINANCIAL12,252.693.71,062,69445.50.026.0%8.0%
HCL TECHNOLOGIES1,813.289.84,920,28229.90.021.6%12.0%
BRITANNIA6,131.783.01,476,92067.40.552.7%4.9%
ITC513.882.76,425,31831.00.025.9%15.7%
NESTLE2,531.778.92,440,95775.20.085.4%22.9%
DLF863.675.92,137,679125.90.12.1%50.6%
HERO MOTOCORP5,795.174.81,158,89527.90.019.5%8.4%
INFOSYS1,944.372.68,072,99530.30.028.6%10.6%
HINDUSTAN ZINC496.670.82,098,08225.80.640.4%NM
POWER GRID337.167.23,135,23419.61.418.6%9.0%
ASIAN PAINTS3,358.757.53,221,61064.00.126.2%20.1%
TCS4,522.357.316,361,89634.80.043.4%12.3%
TORRENT PHARMA3,455.757.21,169,54967.40.620.0%9.8%
TATA CONSUMER1,209.956.81,197,07995.30.26.8%9.4%
BHARTI AIRTEL1,634.556.59,946,351114.01.97.8%NM
DABUR660.753.81,170,96663.30.120.7%2.2%
DIVIS LABORATORIES5,495.749.81,458,92287.20.018.3%NM
ABB INDIA7,687.549.71,629,035101.20.014.0%75.6%
PIDILITE INDUSTRIES3,310.146.61,683,53691.10.020.6%15.8%
UNITED SPIRITS1,522.846.51,107,57478.20.016.1%57.3%
HAVELLS INDIA1,987.044.41,245,68889.50.018.1%6.8%
COAL INDIA490.242.13,020,6618.60.144.9%43.3%

* We show NM where the values are negative

Disclaimer: This is for information purposes only. These are not stock recommendations and should not be treated as such. Learn more about our recommendation services here... Also note that these screeners are based only on numbers. There is no screening for management quality.

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FAQs

Which are the top dividend payout stocks in India right now?

As per Equitymaster's Stock Screener, these are the top dividend payout stocks in India right now.

  • #1 TECH MAHINDRA
  • #2 VEDANTA
  • #3 HUL
  • #4 ORACLE FINANCIAL
  • #5 HCL TECHNOLOGIES

These smallcap companies have been ranked according to their dividend payout ratio (DPR). A high ratio indicates that the company is paying out relatively more of its earnings in the form of dividends.

There are other parameters you should take into account as well before forming a hard opinion on the stock.

What is the dividend payout ratio of a company and how is it calculated?

Dividend payout ratio is a financial ratio that measures the percentage of net income that is distributed to shareholders in the form of dividends.

It is calculated by dividing the amount of dividend a company pays in a year by the net profit for the year.

Dividend Payout Ratio = Dividend per share/Earnings per share

Here's an example...Suppose a company's earnings per share is Rs 50 and the company's dividend per share is Rs 20. Using the above formula, the dividend payout ratio of a company is 40%.

This means that for every Rs 100 earned by the company, it distributed Rs 40 in the form of dividends to investors.

Should you invest in high dividend payout stocks?

Yes, it's a smart way to have a fixed and relatively stable source of income while being invested in the stock market.

Dividend paying stocks offer a source of regular income and are an excellent source of passive income.

Companies that pay dividends consistently are more stable than those that don't. Hence, the higher the dividend payout ratio and dividend yield, the better.

However, you shouldn't just look at dividend ratios alone to pick stocks for your portfolio.

How much should you invest in high dividend payout stocks?

Allocation to stocks cannot be determined by the dividends fetched from them. Rather investors must keep in mind that even high dividend yield stocks like Coal India have eroded shareholder wealth and bit the dust due to poor capital allocation, lack of corporate governance, and management apathy.

So, investors should bear in mind that all high dividend yield stocks are NOT wealth creators...even over the long-term.

Allocation to dividend stocks must depend on the marketcap of the company in question. If the company is a bluechip or a smallcap stock, please allocate funds to the stock accordingly.

Further, we believe that a single stock should ideally not comprise more than 5-6% of the total money allocated towards equities

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Top Dividend Paying Stocks | Equitymaster (2024)
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