In the world of investing, one strategy that often attracts investors seeking stable returns is putting money in high dividend paying companies. These are companies that distribute a significant portion of their profits to shareholders in the form of dividends. In the last 12 months, two major players in the metal and mining sector, led by billionaire Anil Agarwal, have emerged as the top dividend yield companies, offering investors attractive returns.
Vedanta, a prominent metal and mining industry name, has demonstrated an impressive dividend yield in the last year. With a dividend payout of Rs 51.50, Vedanta’s dividend yield stood at a remarkable 20 per cent. This means that for every Rs 100 invested in Vedanta, shareholders received Rs 20 in dividends over the past 12 months, making it an appealing choice for income-seeking investors.
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Hindustan Zinc, another significant player in the metal and mining sector under Agarwal’s leadership, also boasts a substantial dividend yield. Having paid out a dividend of Rs 52 in the last year, Hindustan Zinc offers investors a 17 per cent dividend yield.
Apart from Vedanta and Hindustan Zinc, other major players contributing to the list of high dividend yield companies include Coal India (7 per cent), Indian Oil Corporation (6 per cent), Power Grid Corporation of India (6 per cent) and BPCL (6 per cent), according to data collated by Axis Securities.
ONGC, ITC, Tech Mahindra, HCL Technologies, Piramal Enterprises, NTPC, Tata Consultancy Services (TCS), Gail (India) and Tata Steel also witnessed a dividend yield of somewhere between 3 per cent and 5 per cent in the past 12 months till December 18, 2023.
Investors looking for a combination of capital appreciation and regular income often find high dividend yield stocks appealing. However, investors need to conduct thorough research and consider various factors, including the company’s financial health, payout history and future growth prospects, before making investment decisions.
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