The stock market is unpredictable because stock prices can fluctuate a lot. Regular income from the stock market seems to be quite a difficult task to achieve, but not if you own shares of the companies that pay dividends. What if we told you that a small number of businesses give you the chance to receive dividends regularly?
Dividend-paying stocks are stocks of those companies that distribute a percentage of their profits to shareholders regularly, usually on a yearly or quarterly basis. Usually, companies that pay dividends generate consistent earnings.
Below Are the Best Dividend Stocks in India#
1. Vedanta Limited#
Founded in 1976, Vedanta Ltd is a diversified natural resources company engaged in the exploration and production of oil and gas, zinc, lead, silver, copper, iron ore, and aluminium. It is one of the largest mining companies in India with operations spanning across multiple countries.
Vedanta is an Indian corporation that operates in the mining, oil, and gas industries. The firm was previously known as Sterlite Industries Limited and started its business operation in 1979. Vedanta owns India’s largest copper smelter, which contributes nearly 50% of its profits. Vedanta also takes corporate social responsibility seriously and has contributed USD 37 million towards community development. It has been ranked as one of the top ten sustainable firms in India. It has 97,015 employees.
2. Coal India Limited#
Coal India Ltd, established in 1975, is the largest coal-producing company in the world. It operates under the Ministry of Coal, Government of India, and accounts for a large portion of India’s total coal production. The company has multiple subsidiaries and plays a key role in the country’s energy sector.
Coal India has headquarters in Kolkata, West Bengal. It is one of the biggest coal mining companies in the world. The Indian government granted the corporation the designation of “Maharatna” in 2011. The company owns multiple subsidiaries that are involved in coal mining operations. It was listed on the stock market in 2010. Coal India Limited contributes approximately 85% of India’s total coal production.
3. Oil and Natural Gas Corporation Limited#
ONGC was established in 1956 and is India’s largest oil and gas exploration and production company. It is involved in the exploration, drilling, and production of crude oil and natural gas, both offshore and onshore, contributing significantly to the country’s energy needs.
ONGC is owned by the Ministry of Petroleum and Natural Gas, Government of India. ONGC was established in 1956 by the Government of India and produces 70% of India’s domestic crude oil production and around 84% of natural gas. It has a subsidiary named ONGC Videsh Limited (OVL), which manages its global production and exploration operations.
4. Bharat Petroleum Corporation Limited#
BPCL established in 1952, is another leading player in India’s oil and gas industry, focusing on refining, marketing, and distributing petroleum products. BPCL operates multiple refineries and an extensive network of fuel stations, serving millions across the country.
BPCL has more than 20,000 fuel stations across India. They began selling LPG cylinders to Indian households in the mid-1950s. The corporation was nationalized in 1976. Bharat Petroleum also started a joint venture named Indraprastha Gas Limited (IGL) with the Gas Authority of India Limited (GAIL).
5. Indian Oil Corporation Limited
IOCL is one of the largest oil companies in India. It operates in the refining, marketing, and distribution of petroleum products, as well as the exploration and production of crude oil and natural gas. The company plays a crucial role in India’s energy security and is owned primarily by the government. IOCL’s vast network of fuel stations and refineries helps it remain a dominant player in the oil and gas sector.
IOCL operates in the oil and gas industry and is owned by the Ministry of Petroleum and Natural Gas, Government of India. The Indian Oil Company Limited and Indian Refineries Limited were two distinct businesses that were merged to form Indian Oil Corporation Limited in 1964. IOCL owns subsidiaries in other countries as well. As of 2022, the company is ranked 94th on the Fortune 500 list. The corporation serves its customers through 34,000 petrol stations across India, and it can produce approximately 3,200 kilotons of petrochemicals annually. IOCL spent Rs. 1,800 crore on healthcare, education, environmental sustainability, etc.
Annual Dividend Yields #
| Company | Annual Dividend Yield |
|---|---|
| Vedanta Ltd. | 6.44% |
| Indian Oil Corporation Ltd. | 7.13% |
| Coal India Ltd. | 5.32% |
| Bharat Petroleum Corporation Ltd. | 13.80% |
| Oil and Natural Gas Corporation Ltd. | 4.46% |
Advantages of Investing in Dividend Paying Companies#
A. It is suitable for investors who are looking to earn a stable income.
B. Dividends can be reinvested to get the benefit of compounding.
C. In addition to dividends, investors also benefit from increased stock prices over time.
D. These companies are less volatile when compared with growth companies.
Nice information