Which companies have consistently offered higher dividends throughout the years?

Short Answer

Companies such as ITC, GAIL, Hindustan Zinc, Oil India, and others have consistently provided higher dividends, all thanks to their profits and the overall growth they might have had despite incurring some losses during the process.

Detailed Answer

Often, newer traders and investors fail to realize that holding stock over a longer period not only provides you profits from the increase in share value, but then you do get dividends as well. however, not all companies are entitled to pay a dividend to their shareholders. It’s all part of the performance of the company and how well they operate in the market. Based on the debt holdings, the number of profits generated and the viability of the dividend issued. Therefore, it plays an important factor as to how much a company should give dividends.

But if you long across several sectors, it’s mostly large-cap companies that have constantly provided dividends. This ranges anywhere from 2%-3% of their per-share price. No doubt it might be a lower amount. But along with the growth in the share prices, you are being offered an additional income through dividends. However, investing in dividends is never an easy task as you have to keep the one main thing in mind, the cost factor. You have to buy lakhs of shares from a company and hold them for a longer period to get any dividends in thousands. Also, on top of this, if you cross a certain threshold in dividends earning, you have to pay taxes as well, which might be around 10% of the total dividends earned.

But if you want to know about the companies that have consistently offered stable dividends throughout the years, then they have been provided below along with their dividend yield.

Screenshot 2021-06-03 at 6.52.08 PM.png

As mentioned in the table, the dividend yield might fluctuate based on the company's performance, profits, and growth throughout the year. Do keep in mind that companies may choose not to give dividends after giving it the previous year. It might be due to reinvestments of the profits into the company or to cover up debts in the company. Either way, dividends are a way of thanking every person who may have held their shares for a longer time and giving back something to the shareholders for their support and trust in the company.

Dividend Income

Dividends are quite lucrative at first, thinking that you are getting paid something. But then, if you want substantial returns, you will need a higher capital to get a sizeable dividend amount. Either way, if you have enough capital left aside and are looking for ways to earn and let it grow, then dividend investment is one way. Ensure that you find companies that have a smaller share price such that you can have enough shares to receive a sizable amount of dividends.

Tagged With: higher dividendsdividenddividend incomehugh returns
Categories: Stock Market
Ask your query and our expert community would be happy to help
Discussion (0)
Related FAQs

For long-term investments, which channels are viable for significant returns given the current market scenario?

For significant returns, one can look forward towards stock funds, real estate investments, dividend stocks, target-date funds and so on. Each one of these investments does offer something better to investors based on their capital of investments made.

Will ITC ever break that 300 rupees per share threshold this year?

ITC could break the 300 rupees per share price threshold provided they follow a particular strategy in running the company and ensure that they don’t make any drastic decisions. However, if things start to normalize and the company can get their establishments running in full gear, nothing stops ITC from crossing the 300 rupees mark.

What are the drawbacks for a company in filing an IPO?

There are many drawbacks such as up-front costs, liability augmentation, extensive decision-making processes, reporting costs increase exponentially, etc. These are just a few; based on the company's performance, many other drawbacks might arise.

What is an IPO or Initial Public Offering?

IPO or Initial Public Offering is the process through which a private company goes public by offering its shares to the public for the first time.

How are the top companies in Nifty and Sensex decided?

Nifty and Sensex play a major role in the economy of the country as they list the best performing companies among all. There are various criteria that are necessary to be under Nifty and Sensex Index such as Liquidity, Market Capitalization, etc.

Are healthcare stocks the new best investment for significant returns?

Healthcare stocks are quite beneficial in the given day and age, all thanks to its impact on the country. They have grown in the evaluation and even providing considerable returns that nobody would have predicted. Therefore, research the stocks that you wish to invest in in the long term and see how it pans out over 10-20 years.

Where can I find Annual Reports of Indian Companies?

There are various ways to find annual reports of the company as it is a public information. The places where we can find it are:

  • The company's website
  • Website of National Stock exchange and Bombay Stock Exchange
  • The paid and free information website.

How much money can NRI transfer to India in one year?

There is no limit on the amount that can be transferred to India by NRIs. There are certain criteria for being an NRI so it is important to check whether you are considered to be NRI or not. For further details, read through the details ahead.

Do you think NIFTY would break the 15,000 mark and reach 16000 mark this financial year?

Breaking the 16,000 points from 15,000 points seems impossible. But, then with constant efforts in curbing the pandemic, normalization in the country, and easing of lockdowns, you never really know what might happen six months down the line.

Can we sell IPO shares immediately?

In an Initial Public Offering (IPO) a company sells its shares to investors in order to raise money. As a retail investor, you can apply for an IPO from the primary market in order to get the shares offered by the company. Once the shares get listed on the secondary market, you can sell your shares provided you have received an allotment in the primary issue.