What Are the Highest Dividend Paying Stocks in India in 2022?

Active and passive businesses are both excellent ways of growing your income. Do you want to start investing in high dividend-paying stocks? You might be unsure of the stock names to go for in 2022.

You may need to make some calculations before choosing the stocks. After all, everything depends on the stocks' financials and fundamentals.

Worry not! The guide below has valuable information and a list of good-quality stocks. It will help you choose the highest dividend paying stocks in India 2022.

Some companies distribute their profits constantly. They do it in the form of dividends to shareholders.

Such companies have excellent track records of paying high dividends in the past. Thus, we call them dividend stocks. Moreover, such companies have a solid foothold and a strong presence in the sector.

Their stocks might have lesser growth potential. But you can't compare them with the rest of the growth stocks.

In short, these companies have good reputations. Dividend stocks exist in two sub-divisions:

·        High Dividend Stocks

These stocks might or might not increase future dividend rates. It is because they pay out higher dividend rates to shareholders.

·        Dividend Growth Stocks

Dividend growth stocks have larger potential increments, especially for dividend rates in the future.

See some primary reasons to consider investing your money in dividend stocks.

1) A Stable Passive Income Source

Dividend stocks allow you to earn regular passive income. Use this as a green signal if you aren't much active in trading like a pro. Invest in companies offering high dividend stocks. The profit distribution of these stocks is consistent.

2) Offers You a Chance to Reinvest

Investors who receive their dividend payout can reinvest the same money in stocks. Or use the amount for personal needs.

Using dividend payouts to reinvest in the same stocks is wise. That's because it helps investors gain steady returns on their investments.

It is where dividend compounding comes in. Continuous re-investments of these payouts can boost your overall returns.

3) Less Risky

As we all know, economies can experience sudden declines. In addition, other happenings, like certain bad events, can lead to market crashes.

High-dividend stocks usually don't disappoint their investors in such scenarios. On the contrary, these stocks often gain back values in harsh market happenings.

Thus, high-dividend stocks are a reliable choice for investors with a low-risk appetite, especially those who worry about capital.

4) A Great Choice during Inflation

The rate of inflation is hitting the past upper limit each day. However, no expert can surely say when things will stabilize. Thus, it is wise to make inflation-proof and effective investments.

Investors can be safe by choosing dividend stocks. High dividend growth stocks will be the best in this case. Yields from growing dividends can help you fight against skyrocketing inflation rates.

5) Investors Can Enjoy Dual Benefits

Dividend stocks might not have high growth potential compared to growth stocks. But, they boast the potential for more value appreciation. Investors who opt for dividend stocks enjoy all dual benefits.

They get a taste of consistent and regular income. Moreover, value appreciation works as an added benefit.

6) Volatile Markets

Investors often need to spend much energy and time tracking a stock's movement. Neither should other happenings in the stock market bother them.

Dividend stocks are stronger and more stable. Some companies are less susceptible to volatile markets. These have lower chances of drastic price changes.

An investor must buy a dividend stock, hold it, and leave the rest to the company.

Check out some of the indian stocks with highest dividend yield for this year.

1) Indian Oil Corporation Limited

India Oil Corporation Ltd is under the Maharatna Company. Thus, it falls under the companies of the government of India.

The company has many business interests. These cut across the whole hydrocarbon chain.

Check out some work sectors covered by this company:

·        Petroleum chemicals

·        Natural gas exploration, production, and marketing

·        Refining

·        Pipeline transport

·        Petroleum products marketing to R and D

The company boasts leadership positions, especially in India's oil refining and petroleum departments. The current market price of the corporation's dividend yield is 12.14%. This company paid Rs. 6/- in dividends in 2022.

2) Coal India Limited

Coal India Limited's main engagement is coal mining and production. It runs coal washers. Primary consumers of this company are steel and power sectors. Others are brick kilns, fertilizers, and cement.

The dividend yield is 7.12% of the market price at the moment. The company has paid Rs. 8/- in dividends in 2022.

3) Rural Electrification Corporation Limited

Rural Electrification Corporation works in the financial sector. It offers major financial support to the power sector projects. In short, it renders financial help across the whole power sector value chain.

It is a vital non-banking finance company. The company is registered as an Infrastructure Finance Company under RBI.

The dividend yield of this company has a current market price of 12.25%. It has paid a dividend of Rs. 11/- in 2022.

4) Power Finance Corporation Limited

Power Finance Corporation Ltd falls under the Government of India. It offers financial help to the power sector as REC does. Its approval is similar to the REC.

It boasts a dividend yield of 11.38%. It has paid a dividend of Rs. 10/- in 2022.

5) Geekay Wires Limited

Geekay Wires Ltd manufactures high-quality galvanized nails and steel wires. The materials are common in cables and conductors.

Their products have a huge demand in the construction and general engineering sectors. It also works in power transmission.

The company has offered Rs. 2.50/- dividend in 2022, which is almost 4.28% of its current value.

6) PTC India Limited

PTC India is a reliable power trading solutions provider based in India. This company started a power market in India in 1999. It has a 2.6% market price for the dividend yield.

7) Majestic Auto Limited

Majestic Auto Ltd got into the commercial real estate business in 2015. It offers management services to major industries in India. In addition, it provides office space that other companies can take on lease.

The dividend yield is at 5.61%.

8) NMDC Limited

National Mineral Development Corporation deals in iron ore. Other work areas of this company are diamond production and sponge iron sale. In addition, it also generates and sells wind power.

It is a government-owned company established in 1958. Research shows that it is the most profitable of the Navratna companies.

It boasts 18% production of the entire iron ore domestic production. The dividend yield goes to 11.31%. Thus, it has been one of the highest dividend paying stocks last 10 years in india.

9) Hindustan Petroleum Corporation Limited

Hindustan Petroleum Corporation Limited works in the sector of refining crude oil. Moreover, it also promotes petroleum products. Other work areas of this company include hydrocarbon production.

The corporation has 16,500+ retail outlets. The company paid a dividend of Rs. 14 in 2022. It is almost 6.80% of its current market price.

10) HUDCO Limited

Housing and Urban Development Corporation company works in the housing finance sector. The company runs several development activities in urban parts of India. The dividend yield of this company is at 9.86% of its market price.

11) Allsec Tech

Allsec Tech is a leading digital business service provider. It also offers HR outsourcing solutions.

It is a renowned BPO offering payroll processing solutions worldwide. The company serves 400+ clients worldwide. Its dividend return is at 18.39%.

12) Balmer Lawrie Investment

The government of India dis-invested 33.58% from its equity holding of 59.58% in the IBP Co. It saw the birth of the Balmer Lawrie Investment company.

So, the company has one of the best dividend stocks India has had over time. The company paid Rs. 6.50/- dividend in 2022. It is almost 5.93% of its current market value.

13) PTL Enterprises

PTL has a dividend return of 6.63%. It is a tire manufacturing business established in 1959 in Kerala. Apollo tires bought the company in 1995.

The company has given 2 percent compound profit growth.

1) Do All Listed Companies Pay Dividends to Shareholders?

No. Not all companies pay dividends to shareholders. Only companies that run in profits can share their yields with their shareholders.

2) Do Companies Stop Paying Dividends Over Time?

Of course, companies can stop paying dividends, and it is normal. It can occur when a company faces problems in management or finance.

Anything could happen, and the company could run into losses. In this case, shareholders don't get dividends.

Businesses can never guarantee assured dividends. Few companies can run well with few to no issues. But the future of each company can be unpredictable.

Go into the dividend stocks investment with this in mind.

3) What's the Main Benefit of  Dividend Stocks?

Dividend stocks can gain their value back after harsh market movements. It is the best thing about these stocks.

Any investor looking to protect capital can invest in dividend stocks.

Most investors gain from investing their money in dividend stocks. It doesn't matter if they are safe or aggressive investors. Investing in these stocks brings decent returns.

You can expect great returns if you buy and hold such stocks for a long time. We have shared India top dividend paying stocks. However, you may need to research more and ensure the investment.

Make sure you avoid blind investments when choosing dividend-paying stocks. Every investor should put capital in the right place. If possible, invest in those stocks where you can get a guarantee for steady returns.

Do you want to start investing in high dividend-paying Indian stocks? Then, create your account with MiTrade, and start your investment journey immediately.