5 Year Average Returns of Top 10 Dividend Yield Stocks Better Than FDs

Here is the list of top 10 dividend yielding stocks and their performance as per IDBI Capital report:

1. NMDC:

As per IDBI Capital report, NMDC The highest dividend yield is 12.3%. Its latest dividend payout was 46.06%. Generally, dividend payout refers to the amount of dividend paid to shareholders in relation to the net income generated by a company for a financial year.

The company’s latest dividend per share will be 14.7 per equity share in FY22. Meanwhile, its 5-year average return on equity (RoE) stands at 19.73%.

2. REC:

Ministry of Power backed REC has the second highest dividend yield of 12%. this is the latest Dividend Payout stood at 30.11%, while the latest dividend per share 13.3 for FY22. The 5 year average RoE of the company is 17.48%.

3. GAIL (India):

New Delhi-based GAIL has a dividend yield Being the third highest dividend yielding stock – of 10.7%. The latest dividend payout of the government owned firm is 36.23% while its latest dividend per share is approx. 10 in FY22. The 5 year average return is 13.31%.

4. Power Finance Corporation:

PFC, a financial services provider to the Indian power sector, has a dividend yield of 10.1%. Its FY22 dividend payout was around 22.61%, while the dividend per share is around 14 to the shareholders. The 5 year average ROE of the company is 25.67%.

5. HUDCO:

The main objective of HUDCO is to provide financial assistance to housing and infrastructure projects in the country. The dividend yield of the state-owned company is 9.3%. In FY22, its dividend payout stood at around 40.82%, while the dividend per share came at 4.9 For Investors. The 5 year average ROE is 12.26%.

6. Coal India:

Coal India, the largest state-owned coal producer in the world, has a dividend yield of 9.1%. Company’s latest dividend payout in FY22 is 60.36% and dividend per equity share 20.5 to investors. The coal producer’s 5-year average ROE is 48.81%.

7. Philips Carbon Black:

Philips Carbon Black, the largest carbon black manufacturer in India, has a dividend yield of 7.1%. For the fiscal year ending March 30, 2022, the company’s dividend payout came in at 44.31%, while the dividend per share stood at approx. 10 per share to the shareholders. Its 5 year average ROE is 19.36%.

8. Power Grid Corporation of India:

Government supported Power Grid is engaged in transmission of bulk power in various states of India. Currently, its dividend yield is 6.7 per cent. The company’s latest dividend payout in fiscal 2012 was 61.16% — the highest among the top 10 dividend yielding stocks. While its latest dividend per share is around 14.8 each. The 5 year average ROE is 22.99%.

9. IRCON International:

Indian Railways-backed IRCON also has a dividend yield of 6.7%. In FY22, its dividend payout stood at around 39.69%, while the dividend per share came at 4.2 per share. The 5 year average ROE is 10.61%.

10. MOIL:

Miniratna state-owned manganese ore mining company, MOIL has a dividend yield of 6.5%. The dividend payout of the company in FY22 was around 32.39% while the dividend per share stood at 10.9 each. The 5 year average ROE of the stock is around 12.28%.

There are other dividend yield stocks—Oracle Financial Services, Hindustan Zinc, and NTPC each have a dividend yield of 5.9%, while Polyplex Corp yields 5.8%, RITES yields 5.4%, and Indus Towers yields 5.9%. of 5.4%. Stocks like NHPC and ITC have a yield of 5.1% each, while Swaraj Engines has a yield of 5%.

Generally, companies listed on exchanges share a certain portion of their net income for a particular financial year with their shareholders as incentives, among which are dividends. Listed companies declare their dividend for a financial year in a periodic format, and pay it to the eligible shareholders.

Dividend can be referred to as passive income on your stock investment. Under this incentive, a company with a high dividend yield is considered safe. Dividend yield is the ratio of dividend paid per equity share to the shareholders at the current price of the equity share. The dividend yield varies with the stock price. So when a stock is falling, the dividend yield is higher, while it is lower when the stock is rising.

In simple words, the stocks with higher dividend yield as compared to the benchmarks like Sensex and Nifty 50 are considered as high dividend yield stocks which gives a fair understanding of the price value of the stock. A high dividend yield stock signals that the stock is generally undervalued by the market and has more upside potential. Furthermore, in the event of a market downturn, these dividend yield stocks are likely to offer higher yields due to their higher dividend payouts.

Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint.