List for Highest dividend paying stocks in India for 2023

Author: Aditya Gupta

Recent market conditions are characterised by the worry of a global recession in 2022–2023, as well as the high volatility of market returns on investments. In this scenario, seasoned investors focus on high-quality businesses with sound financials and those that routinely pay out large dividends.

Since these firms have a strong cash-generating mechanism and can pay continuous dividends to their investors, which is a popular technique to produce passive income from dividends, the majority of seasoned investors target such stocks that pay dividends on a regular basis.

What is Dividend?

The dividend is basically the part of the profit which the company earns a particular time duration and that will be distributed among their shareholders in the form of cash.

In the stock market the trader or investor earns in two different ways:

  1. capital appreciation
  2. earning dividends from your investments.

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The company has two different options to utilise their profits:

  1. Reinvest the Profits: first is to reinvest their profits for the future projects of the company.
  2. Distribute profits among shareholders: this part is basically the sharing of company profits in form of dividends amongst shareholders.

Who take Dividend decisions in the company?

Many company's dividend decisions to be paid yearly or quarterly to the investors. Dividend decisions are going to be taken by the management only based on their profits and their future goals. It is not compulsory for the company to pay dividends to its equity shareholders, but whenever a dividend is going to issue the preference shareholder gets the first preference over equity shareholders.

The top 5 Highest dividend paying stocks in India are:

1.. Hindustan Zinc Limited

  • Hindustan zinc is one of the world's largest only integrated zinc, lead, and silver producer, and Hindustan zinc provides the cheapest zinc in India.

  • Hindustan Zinc is a subsidiary of Vedanta limited.

  • The last 5-year Average dividend yield of Hindustan Zinc is 5.62% and in India, Hindustan Zinc captures 75% of market shares and it is the largest zinc provider.

Indus Tower

  • Indus tower was previously known as Bharti Infratel Limited and it is India's biggest telecom tower setup company.

  • Indus Tower is the service provider that deploys, owns, and manage the telecom tower and communication structure for various mobile operator.

  • The last 5-year Average dividend yield of Indus Tower is 5.81%.

  • In March 2021 Indus Tower have 1.85 lahks of the tower and 3.35 lakhs colocation across 22 circles.

Vedanta

  • Vedanta is India’s biggest privately owned metal and mining company.

  • Vedanta is a global diversified natural resources company that deals in the exploration, production, and sales of zinc-lead-silver, iron ore, steel, copper, aluminum, power, oil, and gas.

  • The last 5-year Average dividend yield of Vedanta is 6.29%.

  • Vedanta metal captures 40% of the market share in India and Vedanta is India’s largest aluminum producer.

Coal India

  • Coal India is a government-owned coal mining corporation and Coal India is the single largest coal producer in the world.

  • In coal India, 82% market share is owned by the MahaRatan PSU.

  • The last 5-year Average dividend yield of Coal India is 7.62%

  • Coal India has India’s 48% of coal reserve and the company caters the 83% of domestic coal demand.

5. Indian Oil Corporation

  • Indian Oil is India’s Largest oil and gas PDU in India and they are at 212 positions in the global fortune out of 5oo.

  • The last 5-year Average dividend yield of Indian oil is 10.10%

  • India oil has a 50% market share in the energy products space which includes petrol, aviation fuel, LPG, diesel, etc.

  • Indian Oil’s network consists of more than 32,000 petrol stations.