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Top 10 Best Dividend Stocks to invest in 2024

Posted By: Admin
January 12, 2023 |

Best Dividend Stocks for long term investment 2024 in India

Best Dividend Stocks 2024: If you are investing money in the stock market for the long term, you think of earning good profits along with passive income which companies pay as dividend.

You must think of investing your hard earned money in stocks after a deep research about the company. Dividend is one of the parameters which you may consider while choosing the best stock to invest for long term. There are some monthly dividend stocks in India which may fetch you monthly passive income.

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In this article we will discuss the top 10 dividend paying stocks in India which have paid the highest dividend on NSE. We will learn about the best dividend stocks of all time in India and also we will see their future prospects in 2024.

Table of content –

What is dividend and Why is it one of the best sources of passive income in India?
Why should you invest in dividend paying stocks for the long term?
How to calculate dividend yield and dividend payout ratio?
What are some highest dividend paying stocks last 10 years in India?

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What is dividend and Why is it one of the best sources of passive income in India?

When you buy a stock in the share market and hold it for a certain period you may earn extra income from the stock as sharing of profit of the company. The company may share the profit in cash directly to your linked bank account or by creating shares to your demat account or other way decided by the company. This profit sharing is called dividend.

Companies from time to time declare the date of dividend payment through various modes like publishing in news articles, websites and newsletters.

Since you don’t have to put any extra effort for this type of earning, dividends are considered as one of the best passive income sources in India. Sometimes companies share a good amount of profits with their investors. Many of the investors consider this fact while creating their portfolio for a long term.

You can have an idea about dividend earning by the fact that some companies share about 50% of the profit as dividend. You can read about upcoming dividend stocks and high dividend stocks 2024 in financial news.

Why should you invest in dividend paying stocks 2024 for the long term?

You need to first decide about what type of investment you want to make. Like you might be thinking of investing money for a year or for some months or for less than a month. Dividend stocks generally require a long term investment also these stocks are not much volatile.

You may invest in dividend paying companies for some of the reasons given below –

Companies with strong financials and fundamentals issue dividends with their investors. These companies pay dividends to attract new investors as well as to maintain investors interest in the company.
Best dividend paying stocks are generally less volatile and less risky. These stocks diversify your portfolio and yield a good profit in the long term.
Dividend is a best source of passive income hence you need not put extra efforts for this income.
If a profit-making company foresees its stock price to be stagnant then they give dividends more than once per year in the form of final dividends and interim dividends.
Sometimes dividends can be as high as 50% of the profit of the company. This means you may yield a good amount from the dividend which may be more than the profit you would have made in trading of the share.

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How to calculate dividend yield and dividend payout ratio?

Let’s learn some technical aspects of this passive income.

Dividend yield

Dividend yield is calculated by dividing the company’s annual cash dividend per share by the current share price.

Dividend Yield = Dividend per share / Price per share x 100

Dividend payout ratio

The dividend payout ratio is calculated by dividing the total dividend paid out by the company to its shareholders by the total earnings of the company in that year.

Dividend Payout Ratio = Dividends per Share (DPS) / Earnings per Share (EPS)

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List of some of the best highest dividend paying Stocks in India 2024

Below you can see some of the best dividend paying stocks 2024 which have history of high dividend payment.

1. NMDC (National Mineral Development Corporation Ltd.)

NMDC is a company which has paid a dividend of ₹14.74 in the last twelve months and its current share price is ranging between ₹120- 128. This stock has potential to touch levels of Rs. 150 in a year.

2. SAIL (Steel Authority of India Ltd.)

SAIL has given a dividend of ₹8.75 last year. The stock is ranging between 85-88 presently and has a potential to move up to levels of Rs. 100 in 12 months.

3. HUDCO (Housing and Urban Development Corporation)

HUDCO’s is also a government-owned company which has a dividend yield of 9.3%. The current market price of the company is 50- 51. The company may reach to a level of 55-58 in near future.

4. IOC (Indian Oil Corporation Ltd.)

IOC has paid a dividend of ₹11.4 in the past twelve months and presently the stock price is ranging between 80-81. This stock may reach to the levels of 95 in the coming 12 months.

5. INEOS (INEOS Styrolution India Ltd.)

INEOS has paid out dividends of ₹297, while its share price is currently at ₹825-830. You may invest in the stock for a level of Rs. 1050 in next 12 months.

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6. Vedanta Ltd.

Vedanta has paid ₹77.5 as dividends in the last one year. Presently the stock is ranging between Rs. 310 – 320 and may reach up to Rs. 400 in coming months.

7. REC (Rural Electrification Corporation Ltd.)

REC paid a dividend of ₹15.3 per share last year. The stock is ranging between 115 – 120. The stock may reach to a price of Rs. 145 in coming months.

8. PFC (Power Finance Corporation Ltd.)

PFC gave ₹12 per share as dividend last year and present market price is ₹140-145. The stock may reach to levels of Rs. 165 in coming months.

9. Coal India

Coal India has paid ₹20.5 per share as dividend to investors. The stock is presently ranging between 215-217 and has the potential to move up to Rs. 260 in the coming 12 months.

10. GAIL (India)

GAIL has a dividend yield of 10.7%. The stock has paid around ₹10 per share as dividend last year. The current market price of the share is Rs. 95-96. The stock may move to levels of Rs. 120 in coming months.

Other Dividend Paying Stocks:

Other best dividend stocks in nifty 50 are National Thermal Power Corporation, Union Bank of India, Phillips Carbon Black, MOIL.

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