Everyone looks for passive income or side hustle to generate additional income in spare time.
Investing in high Dividend paying stocks with fundamentalanalysis will help us generate strong source of passive income.
Here We are sharing Top 5 high dividend paying stocks .
Companies which are financially sound are considered to be safe dividend stocks
We considered companies where Dividend yield >10, Market capitalization > 500 Crore. Price to earning < 20, AND Return on capital employed > 20%
Companies that pay dividends regularly, even during a bad economy or during market crashes are good companies for a regular income.
Styrenix Performance Materials Limited is one of the largest producers of Absolac (ABS) and Absolan (SAN) in India.
ABS is a plastic resin produced from acrylonitrile, butadiene, and styrene, used for manufacturing home appliances, automobiles, consumer durables, and machinery.
The company is one of the best companies in terms of dividends. It has been paying over 40% dividends since 2016 consistently.
In FY2021-22, Styrenix Performance Materials Limited paid dividends twice – 192% and 105% as special interim dividends one and two in October and June 2022 respectively.
With a Market Cap of ₹1,303 Crore, the company has a ROCE of 47.6 %, ROE of 37.0 %, Dividend Yield of 14.2 %, and Stock P/E of 5.44 in FY2023.
Vedanta is one of the world’s foremost natural resources conglomerates.
primary interests of the company are in zinc-lead-silver, iron ore, steel, copper, aluminum, power, nickel, and oil and gas.
World-class natural resources powerhouse with low cost, long-life, and diversified asset base.
In the past 12 months, Vedanta has declared an equity dividend of Rs 81 per share-dividend yield of nearly 30% annually.
The company declared quarterly four equity dividends of Rs 12.50, Rs 17.50, Rs 19.50, and Rs 31.50 in FY2022-23.
Vedanta has registered strong revenue from an operation that increased from Rs 86,863 crore in FY2021 to Rs 1,31,192 crore in FY2022.
Profit After Tax has increased from Rs 15,032 crore in FY2021 to Rs 23,710 crore in FY2022.
The diluted EPS of the company has gone up from 31.13 in FY2021 to 50.38 in FY2022.
With a market cap of ₹ 104,974 Crore, Vedanta's ROCE is 32.2%, ROE is 30.0 %, Dividend Yield is 35.9 %, and Stock P/E is 7.34 in FY2023.
World’s 2nd largest Integrated Zinc Producer with a current production capacity of 16.34 million tonnes per annum.
The company is almost debt-free providing a good dividend yield of 25.3% with a healthy dividend payout of 98.1%.
During FY2022, the company distributed three interim dividends. Rs.21 per share (900%) first Interim Dividend in July 2022,
Rs.15.50 per share (775%) Second Interim Dividend in November 2022,
Rs.13.0000 per share (650%) Third Interim Dividend in January 2023.
Again, the company paid Rs.26 per share (1300%) Interim Dividend in March 2023.
Strong revenue from the operation that increased from Rs 22,071 crore in FY2021 to Rs 28,790 crore in FY2022.
Profit After Tax has increased from Rs 8,980 crores in FY2021 to Rs 9,630 crore in FY2022.
The diluted EPS of the company has gone up from 18.89 in FY2021 to 22.79 in FY2022.
With a market cap of ₹ 125,999 Crore, Hindustan Zinc ROCE is 37.3%, ROE is 28.8 %, Dividend Yield is 25.3 %, and Stock P/E is 11.6 in FY2023.
Indian oil (IOL) is a diversified, integrated energy major with a presence in almost all the streams of oil, gas, petrochemicals, and alternative energy sources.
IOL is a consistent dividend-paying company.
In FY2021, the company distributed a dividend thrice - Rs.1.5 per share (15%) Final Dividend in May 2021.
Rs. 4 per share (40%) Second Interim Dividend in January 2022.
Rs.5 per share (50%) Interim Dividend in November 2021.
IOL consistently performs with revenue growth and profitability with a healthy dividend payout
F41% YoY growth in revenue from Operations to reach Rs. 7,28,460 crores for the financial year 2021-22 from Rs. 5,14,890 crore the previous year.
Net profit - Rs 24,184 Crores
Market Cap is Rs 1,765 Crore, ROE - 13.3%, EPS - Rs 26.34 ROEC - 15.44%
Engaged in the exploration of a wide range of minerals including copper, rock phosphate, limestone, magnesite, diamond, tungsten, and beach sands.
NMDC is a consistent dividend-paying company.
In FY2021, the company distributed a dividend thrice -
Declared an interim dividend of ₹3.75 per share in February 2023.
Rs.5.73 per share (573%) Second Interim Dividend in February 2022.
Rs.9.01 per share (901%) Interim Dividend in December 2021.
Rs.7.76 per share (776%) Interim Dividend in March 2021.
68% of YOY Increase in Revenue from Operations to reach Rs. 25,882 Cr in FY2022.
Profit after tax went up by 50% YOY to reach Rs. 9398 Cr in FY2022.
Market Cap - Rs 32,647 Crore EPS - 32.07 ROE - 27%, ROCE - 73%.
Apart from these 5 high dividend paying stocks,
Here are few other companies who distribute good dividend with strong fundamentalanalysis as below.
SAIL, Bharat Petroleum Corporation Limited, SJVN Limited, REC Limited, Power Finance Corporation Limited, Oil India Limited, Coal India, Gail, NTPC Ltd., ITC Ltd., Banco Products (India) Ltd., Taparia Tools Ltd.