Click it and Unblock the Notifications
5 Nifty Stocks With The Highest Dividend Yield For Fy22 So Far
Dividends are secondary income sources and dividend yield is the dividend that the company is able to give relative to its share price. But be mindful companies that dole out a higher dividend or have a higher dividend yield tend to underperform the ones with lower dividend yield.
So, as in a particular fiscal year, listed companies may declare 3 type of dividends- Interim, Final and special, here we discuss the companies (top) companies from the Nifty pack that have delivered the highest dividend yield considering the dividend declared so far for fiscal year 2022.
5 Nifty Stocks With The Highest Dividend Yield For Fy22 so far
| Nifty 50 stocks | Dividend type | Amount | Current stock price as on January 25, 2022 | Dividend yield | Srip's 1-year gains |
|---|---|---|---|---|---|
| Coal India | Interim Dividend | Rs. 9 | Rs. 161.15 | 5.58% | 22.00% |
| IOC | Interim dividend | Rs. 5 | Rs. 121.45 | 4.12% | 30.00% |
| HCL | 4 Interim dividend and 1 special dividend | Rs.42 | Rs. 1123.70 | 3.73% | 18.60% |
| ONGC | Interim dividend | Rs. 5.5 | Rs. 165.15 | 3.33% | 80.79% |
| Power Grid | Interim dividend and Special dividend | Rs. 7 | Rs. 218.85 | 3.2% | 53.42% |
Dividend paying companies
For companies paying dividend it is generally iterated that these entities are mature companies in their line of business and instead of redeploying the profits into the business, think it better to distribute the same among its shareholders. Generally PSUs deliver high dividend in respect of their share price and hence are high dividend yield scrips.
General trend of dividend payment by Nifty stocks
FMCG company like Tata Consumer, Auto major Maruti declares final dividend. This is also true for some of the financials within the pack. On the other hand, companies which declare dividend from the Nifty pack are mostly PSUs. Furthermore, tech companies pay interim dividend multiple times during the course of year as we can see for HCL for here. Also, there can be a case for special dividend as paid by HCL for the ongoing FY to commemorate hitting a milestone. The company together doled out Rs. 16 as the first interim dividend that comprised Rs. 10 special interim dividend.
Should you be buying these high dividend yield stocks
Some of these high dividend yielding scrips are PSUs such as Coal India which can be a good bet in a falling market and the company will keep up with the dividend pay-out based on future earnings visibility.
Further, other stocks like the upstream company ONGC it is also conveniently placed given the way crude oil prices are booming and brent crude has surged past $90 per barrel.
For IOC other than the high dividend yield, the positives are the company's investments in city gas distribution which shall be earnings accretive but over a period of time.Also, the company's refining margins are seeing an improvement from the initial Covid times. Furthermore, as the third wave shall be passe, with greater economic resilience, demand for auto fuels shall rise and the company shall stand to do well.
Power Grid can again be a good player to bet on as the upcoming Budget may announce some positive news for the sector.
Disclaimer:
Most companies are yet to announce their interim dividend and the final dividend is indeed announced after the fiscal year end, so for a complete picture on the highest dividend yield Nifty stocks for Fy22, the story will be updated. Also, the story should not be considered as an investment advice into the listed stocks, be mindful of the fact that equities investment being market linked pose risk of financial losses. So act accordingly.
GoodReturns.in
Sign in with Google