Introduction
The stock market in Indian market is very volatile however its dividend is indeed a source of stable income for the investors. Even if chosen a well established, fundamentally strong or high paying dividend stock of great profitability, the returns are much higher in this case. A high dividend stock can be a tax efficient investment as The tax on dividend is generally lower than other forms of the income. And the total return on the highest dividend stock is also higher than the others.
High paying dividend stocks form an essential part of any investor’s portfolio so when selecting any stock , an investor must keep some points in his mind to ensure a long term potential growth such as
- Whether the company has consistency in payments of dividends
- The stability and growth prospects of the company
- The historical dividend yield of the company
Top Highest Dividend Stocks In India
In India there are top 5 highest paying dividend stocks as follows
- Reliance industries ltd
One of India’s largest companies with various areas covering like oil, telecommunications retail etc Reliance holds a strong position and growth potential in the Indian market and is one of the highest dividend Paying stocks in India.
- Infosys
Another India’s biggest IT company that serves software development and consulting services. In terms of the market it has a good record of giving consistent dividends to its investors and ranks among the top dividend paying stocks in india
- Tata consultancy services
A Global leading company in its IT services. Serving the growing demand of customers in the digital transformation era. It also stands out as India’s highest paying stocks.
- Coal india limited
The largest coal mine company in the world based in India offers a stable dividend and has a good cost management strategy implemented in the company.
And last but not least
- Oil and natural gas corporation (ONGC)
It looks for the oil and gas under the ground. A financially strong company which is always looking for more opportunities. High growth prospects in the future.
Conclusion
As a long term investor while investing you should consider stock appreciation as well as the rewards from the company reserve, the stock fundamentals and dividend payout of the company. It is important to note that there are some risks associated with dividend stocks . the Top dividends stocks also comes up with some amount of risks such as market volatility, economic downturns, change in the dividend prices, so an investor investing in top dividend stocks must select the companies with strong growth and dividend prospects so that he can achieve their financial goals while minimising the risks. Utilizing financial screeners can assist investors in identifying companies with solid financial fundamentals and reliable dividend histories, enabling them to make informed investment decisions suited to their objectives and risk tolerance.
