Here is The List of Top 10 Highest Dividend-Paying Stocks
During the time of the pandemic, the investors are rushing towards high dividend-paying stocks for making money in these uncertain markets.
Deepak Jasani, head of retail research in HDFC Securities said "Conservative investors and even retired investors who want stable income flow from stocks prefer dividends especially if they are not in the highest tax bracket”
Here's the list of top 10 dividend-paying stocks with the highest market cap. These companies have been consistently paying dividends over the last five years.
Stock, Dividend Payout Ratio(%), Dividend Yield(%)
ITC with 81.51, 5.20
Hindustan Zinc 102.44, 7.02
Power Grid Corporation of India 43.43, 5.41
Indian Oil Corporation 48.87, 10.46
Bharti Infratel 58.87, 5.13
Petronet LNG 69.36, 5.08
Pfizer 296.54, 6.80
Sun TV Network 71.13, 5.16
Procter & Gamble Health 87.09, 8.71
SKF India 222.40, 7.78
Some investors see regular dividends as a measure of the health of the company. However not all the companies paying high dividends have a healthy profit and loss account and balance sheet.
Deepak Jasani said "Along with the level of dividend yield, investors check whether the company borrows to pay the dividend and the company’s past dividend record. Also, they check whether its cash flows and earnings are stable, growing, or volatile. Every company follows a set of principles guiding cash dividends,".
Jasani also explained that some companies use a stable dividend policy, and try to align its dividend growth rate to the company’s long-term earnings growth rate. Companies with outstanding debt often are restricted in the number of dividends they can pay because of debt covenants and legal restrictions.