Every successful investor wants stable returns from their portfolio.So we are here listing top dividend-paying stocks for your convenience.Though there are a lot of companies which pay a good amount of dividend, but consistency is very important.We will list the companies which had paid high dividends consistently for a long period of time and they are likely to continue paying dividends at the same rate.
Dividends provide passive income to investors.They can be more trusted during uncertain times such as market crashes because they are mostly held tight by investors.It is a very good idea to buy top dividend paying stocks during market crashes as they provide a good entry point.
Warren Buffet is known to invest in the best dividend paying companies.As we all know the saying ‘’slow and steady wins the race’’,this is the case with stocks also.Every successful investor builds their wealth over decades.Reinvesting the dividends again is very important.This keeps you ahead of inflation.
It also acts as a good vehicle for those who want regular income from their investments.Before choosing companies for a dividend ,it should be thoroughly researched.There are companies which pay high amounts of dividends inconsistently.The consistency of the company paying a dividend should be checked first.We should look for companies which are providing good dividend yield consistently.This dividend yield should be increasing slightly on a yearly basis.If there is an abrupt increase in dividend yield, it is a word of caution. Because such high dividend yield may not be sustainable for the company.
Another word of caution is that one should not invest just by seeing the dividend history.Fundamentals of the company should be checked beforehand.Always check for debt-to-equity ratio which should not be more than 2.Ideally the debt to equity ratio should be less than 1.
For your convenience we are listing here the top dividend paying stocks which have provided a consistent amount of dividend for over a decade and hopefully they will keep providing the same in the future.
Our first choice among top dividend paying stocks is:
1.Page Industries-We all know the brand Jockey.They produce quality inner-wear and are unbeatable in quality.They also produce swimwear known by the brand name speedo. The company has provided not only consistent returns to it’s investors but also has provided good amounts of the dividend.The company has provided 48% of it’s net profit to it’s investors since 2007.It has also appreciated in price since 2007 giving an annual compound growth of 61%.
Our second choice:
2.P&G Hygiene-They produces well-known house hold products such as Vicks, Ariel, Tide, Whisper, Olay, Gillette, Pampers, Pantene,Oral-B and Head and shoulders. In the past 10 years, this company has given 40% of it’s net income to it’s investors as dividends which is very lucrative.Though the growth of this company is not that fast but because of it’s strong dividend history, the price of the stock has appreciated at a rate of 30% annually.For a long term investor, it is a good bet.
Our third choice:
3.Coal India Limited-Coal India has provided a consistent amount of dividend in last 5 years.The average dividend yield for last 5 years was 5.26%.This could be thought as a good investment.
Our forth choice among top dividend paying stock is:
4.Asian Paints-Asian paints which are well-known brand.It is the industry leader in its sector.It has given 42% of its net income over a period of 10 years to its investors.The company is expected to pay the same amount of dividend in future.
Our fifth choice:
5.NHPC-NHPC is Indian hydropower generation company.It has provided an average dividend yield of 7.89% in last 5 years.It is expected to deliver the same amount of dividend in future.
Our sixth choice:
6.Dabur India-Dabur has a compound annual growth rate of 34% .They have also distributed 35% of its profits as dividend over last 5 years.As we all know Dabur provides healthcare products specially famous for it’s chyawanprash.The volume growth of Dabur is exponential.
Our seventh choice among top dividend paying stock is:
7.GlaxoSmithKline Consumer healthcare-We all drink Horlicks or Boost, right? Horlicks and Boost account for 90% of the sales of the company.Among pharma products, we have all taken Crocin and ENOover the counter.The company has provided 38% of the profit margin to it’s shareholders as dividends during last 10 years.It is an attractive bet for a long-term investor as it has a market share of 65% in health drink category.
Our eighth choice:
8.Supreme Industries-This company offers products such as plastic products and operate in various sectors of the piping system and protective packaging materials.This company is a growth company which has shown a compound annual growth rate of 28% over a period of 10 years.During the same period of 10 years, the share price has appreciated at 41% CAGR.Supreme Industries has given a dividend of 35% of its profit during the same period.
Our Ninth choice:
9.NMDC-National Mineral Development corporation is the largest producer of iron ore in India.It is a mineral based mining company under Government of India.NMDC has given the good amount of dividend in last 5 years.Its average dividend yield in last 5 years is 6.78%.It is expected that this company will be giving this kind of dividend in future.
Our Tenth Choice in top dividend paying stocks:
10.Pedilite Industries-The makers of favicon have paid 32% of their earnings to the shareholders as a dividend in last 5 years.The company has an annual growth rate of 20% and 15% across its two segments consumer and specialty Industrial chemicals over the same period.It is expected the company will grow in the same manner and will keep providing the dividend in future.