Dividends are the best way to make some money as a passive income. There are different types of investors among us some invest in those quality stocks that pay high dividends and some investors choose quality stocks to get a huge return. In this post, I’ll share some high-dividend-paying stocks to make some extra money from your investments.
Dividends Stocks does not mean you’ll only earn some dividends you’ll also get returns on the stocks too. If you invest money in dividend stocks then you’ll get extra money as dividends. There are a lot of companies listed on the NSE and BSE and in those companies, some companies pay more dividends to their investors as compared to other companies.
Hope you know that you also have to pay tax on the dividends you earn. Tax is only applicable when dividends cross rs. 5000. Below rs. 5000 you don’t need to pay any tax.
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What is a Dividend?
When a company makes profits in a quarter, most probably it announces some dividends per share to its shareholders. It depends on the company how much dividends it is giving to its shareholder.
You also have to pay tax on the dividends you earn. As we mentioned above the tax is only applicable if your dividend goes above rs 5000.
Benefits of Dividends
Dividend Income is a type of passive income, we all know passive income helps a lot in our regular lives. Some people invest some money in high-paying dividend stocks to earn some money to manage their expenses or other things.
- One more source of Income
- Extra Income on your Investments
- Consistent regular income
- Reduce overall portfolio risk
Should You Invest All Money in Dividend Stocks?
You should not invest your all money in dividend stocks because of some dividend stocks. can be fundamentally weak as a result, it can cause high loss. You always should invest only in those dividend stocks which are the fundamentally strong and good team behind the company and also check fundamentals before investing.
Bonus Guide: Investing Rules
Here are some investing rules given by experts to minimize your risk and maximize your profit or return on your investments. We strongly suggest you follow the rules in case you want good returns in the future.
Rule #1: Do not invest all the money in 1 sector’s stocks. No matter what is the future of the sector. In case, you invested all the money in 1 sector, if the sector faces any issue then you’ll face a huge loss.
Rule #2: Invest a maximum of 5% – 7% of the total money in 1 stock. Suppose you have Rs. 1 Lakh the invest only 5000 – 7000 in 1 stock.
Rule #3: Invest in a maximum of 2-3 stocks of any sector. When any stock in the sector will face problems then other stocks will save you from huge losses.
Rule #4: Invest in any stock when the stock the available at a 10% low from its 52-week high. Some people invest in stocks at high, and as a result, they did not get good returns on their investments.
Rule #5: Invest in stocks for at least 5 – 10 years to get very high returns. The 2022 year, the market is very negative as a result some beginner investors sold their holdings in panic. In short, the market will go up and down but in the next 5 years, it will give a very huge return.
High Dividend Paying Stocks
Here we will share only the top 5 high dividend paying stocks in India. The stocks we are going to share are fundamentally strong and we will also share their dividend history so, you can take some better decisions for selecting good dividend-paying stocks.
Note: We strongly recommend you do your own research before investing in such types of strategies. Do check the fundamentals of each stock and make sure that you are only investing in fundamentally strong stocks. The post is only for educational purposes, this is not investment advice and we are not SEBI registered.
And here are some best trading apps that allow you to buy and sell stocks online in India.
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Here’s The List of Top 5 High-Dividend Paying Stocks in India
Frog Cellsat
Frog Cellsat Ltd is an RF equipment manufacturer they manufacture a lot of products like Interference Mitigation, RF cables, GPS products, Line amplifiers, Defence products, and a lot of products. Currently, the stock is trading at around rs. 165.
Dividend History
| Year | Dividend % |
|---|---|
| March 2022 | 10,000 |
| March 2021 | 0.00 |
Vedanta
The main business of Vedanta Ltd is mining Zink, Alumunium, Lead, Silver, Oil, Gas, Iron ore, Steel, Copper, Power, and much more. The company is doing very well in its sectors and its complete business information can be found on its website. Currently, the stock is trading at around rs. 278. Check the updated price on your stock broker.
Dividend History
| Year | Dividend % |
|---|---|
| March 2022 | 4500 |
| March 2021 | 950 |
| March 2020 | 390 |
| March 2019 | 1885 |
| March 2018 | 2120 |
IOC
IOC (Indian Oil Corporation) ownership is under the Ministry of petroleum and natural gas. The stock has given an approx 549% return since 1 Jan 1999. But in the last 5 years, the stock is down by almost 50%. The Last 6-month return is around 8%. Currently, the stock is trading at Rs. 77.
Dividend History
| Year | Dividend % |
|---|---|
| March 2022 | 114 |
| March 2021 | 120 |
| March 2020 | 42.50 |
| March 2019 | 92.50 |
| March 2018 | 210 |
SAIL
Steel Authority of India Ltd. (SAIL) is a well-known company/stock. This company ownership is under the government. The stock is down by -14% in the last year but given the good returns almost 1,320% since 1999. The current price of the stock is Rs. 85.
Dividend History
| Year | Dividend % |
|---|---|
| March 2022 | 87.50 |
| March 2021 | 28.00 |
| March 2020 | 0.00 |
| March 2019 | 5.00 |
| March 2018 | 0.00 |
Hinduja Global
Hinduja Global has also given good returns in the past time but returns are not enough. Currently, the stock is trading at Rs. 1300. The dividend history of the stock is given below.
Dividend History
| Year | Dividend % |
|---|---|
| March 2022 | 2,200 |
| March 2021 | 400 |
| March 2020 | 200 |
| March 2019 | 100 |
| March 2018 | 100 |
FAQs
The dividend depends upon the company’s earnings and profits and the board of members. Each company’s dividend changes from time to time because it depends on the company’s profit. Above we shared some stocks that give high dividends to their investors.
There are no such stocks that give monthly dividends. All the companies give dividends after their quarterly result but it depends on the company that they will give dividends on not.
The stocks pay the highest dividends as well as good returns in upcoming years are mentioned above. Do your own research before investing in them.
Last Words: Above we shared some stocks that pay high dividends to their investors and we think they can also give good returns in upcoming years. You should not always focus only on dividends, you should also focus on company fundaments to get good returns from stocks too.