These stocks are listed below are in order of their high dividend yields. We have selected these stocks mostly on their technical indicators like Market Price, Market Capitalization & Price Earning Ratio. These two technical indicators has been combined with dividend yield generated by these companies at these price levels.
It is also very important for long term investors to know that whether the company has consistency in paying high dividends to its shareholders or these values are like one-off-cases. We have rated the listed companies in terms of their dividend disbursement consistency. For a long term investor this will be very helpful.
I am personally a big fan of dividend focused investing in shares. According to me this is really a good example of passive income (more than rental income in real estate investing). The only effort you have to do is to save regularly and buy shares of quality companies that pays high dividends. This is not as easy as it looks, because majority of quality companies do not believe in paying high dividends instead they would like to re-invest their income in their growth. So it becomes even important for investors to wait for price of these companies to become undervalued and then buy their shares.
The share market has almost become unpredictable these days. One time it stagnates, other time it jumps and fall back to all time low levels in no time. This is making small (even large investors) very confused. All investors who are investing with focus of price appreciation are in a bit of problem here at these price levels. Now when Sensex is almost near to all time low of 2011, it is important for investors to revise their investment focus, high dividend yield stocks will not be a bad choice.
These are companies (high dividend paying) that has more resilience (in times of crisis). Long term investors would like to hold on to these shares even there is a fall in prices. Value investors would perhaps buy more of these shares in price dips. What we mean to say is that, the market price of high dividend paying companies are always more stable than other companies.
| SL | Company | Market Price | Dividend Yield | Dividend Consistency |
| 1 | HCL Info | 39.25 | 20.38% | High |
| 2 | Shipping Corp | 47.1 | 11.68% | HIgh |
| 3 | Ashok Leyland | 22.65 | 8.83% | Medium |
| 4 | GIC Housing Finance | 71.35 | 7.71% | Medium |
| 5 | Chennai Petro | 157.8 | 7.60% | High |
| 6 | Electrosteel Castings | 16.95 | 7.37% | V.High |
| 7 | ONGC | 265.25 | 6.60% | High |
| 8 | Andhra Bank | 83.9 | 6.56% | Medium |
| 9 | Indian Overseas Bank | 76.3 | 6.55% | Medium |
| 10 | India Infoline | 46.65 | 6.43% | Medium |
| 11 | Finolex Ind. | 47.6 | 6.30% | High |
| 12 | UCO Bank | 49.95 | 6.01% | Low |
| 13 | Guj NRE Coke | 16.7 | 5.99% | High |
| 14 | Hyderabad Ind. | 273.95 | 5.84% | Medium |
| 15 | HPCL | 248 | 5.65% | Medium |
| 16 | Rolta | 62.1 | 5.64% | High |
| 17 | Philips Carbon | 90.95 | 5.50% | Medium |
| 18 | ISMT | 23.8 | 5.25% | High |
| 19 | Syndicate Bank | 73.95 | 5% | High |
| 20 | Graphite India | 70 | 5% | High |
| 21 | JK Tyre and Ind. | 61.15 | 4.91% | High |
| 22 | Geojit BNP | 15.5 | 4.84% | Medium |
| 23 | Bank of Maharashtra | 41.75 | 4.79% | High |
| 24 | Allahabad Bank | 125.45 | 4.78% | Low |
| 25 | Bharat Bijlee | 545 | 4.59% | V.High |
| 26 | Cummins | 347.55 | 4.32% | Low |
| 27 | Karnataka Bank | 69.4 | 4.32% | High |
| 28 | IDBI Bank | 82.35 | 4.25% | Medium |
| 29 | Blue Star | 169 | 4.14% | Medium |
| 30 | Usha Martin | 24.15 | 4.14% | V.High |
| 31 | NIIT Tech. | 186 | 4.03% | Medium |
| 32 | Guj Ind Power | 67 | 3.73% | High |
| 33 | Castrol | 416 | 3.61% | Medium |
| 34 | Tata Steel | 362.85 | 3.31% | V.High |
In such moments of price volatility and uncertainty it becomes clear that why Value Investors backs dividend paying stocks. For a value investors there is no better motivation than real-cash-in-hand income than dividends. For them market price appreciation is just a ‘virtual Gain’. Dividend earning is the real cash earning you see in your bank account at the end of each quarter/ financial year. This is the reason why value investors use dividend yield model for stock valuation.