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.
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.
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.
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.