Last Updated on 25/12/2023 by Deepak Singla
Don’t worry if you have money to invest in dividend-paying equities but are unsure of which ones to pick. We’ll show you how to choose the highest dividend-paying stocks in India in this article. Our internal specialists have evaluated these stocks based on their financial health and fundamentals.
Let’s first define a dividend before moving on to the stocks that pay the greatest dividends. So, a dividend is a sum of money that a business gives to its eligible shareholders as a kind of compensation and capital return. It is a distribution that a business makes from its profits. The company’s board of directors determines the dividend amount.
However, dividend yields should be considered more so than actual dividend amounts while evaluating stocks. Simply expressed, the dividend yield is determined by dividing the annual dividend per share by the stock price at the time of calculation.
For instance, a company’s dividend yield is 5 percent (5/100) if its share price is 100 and it pays an annual dividend of 5 per share. As a result, the dividend yield is the appropriate metric to use when evaluating dividend-paying equities because it provides information on the potential return on our investments based only on dividends. Our returns may also increase due to stock market growth for the company.
Dividend Myths & Facts You Didn’t Know
Divergent Dividends:
It has been noted that dividend payments fluctuate from year to year. Rarely is it noted that businesses who are featured among the top dividend payers in 2020 will also be listed among the high yield dividend stocks for the years 2022 and 2023.
Inverse Proportion:
The share price of the stocks is inversely correlated with their dividend yield. For instance, the equity share value of the stock will gradually trend lower if the dividend yield is trending increasing.
Capital Appreciation Risk:
The finest dividend-paying stocks for the long term may not provide you with as high of returns on investment as other equities, according to most observations. When you decide to invest in top dividend stocks over the long term, it becomes clear that high-yield dividend stocks have had significantly lower returns than regular equities firms over the past ten years.
Falling in the Bull Market:
When the market is in a bullish trend, investors are looking for the best possible returns on their investments as the share price rises. As stock price and dividend yield are adversely correlated in certain situations, the dividend yield of the companies will tend to decline.
Investors were duped:
Investors frequently believe that dividend payments represent a return on investment when a firm releases dividend rates and is included in lists of the finest long-term dividend stocks, but this is incorrect. High-yield dividend stocks cannot be used to determine the return on investment.
To fully grasp this idea, let’s go inside and examine every last aspect. The finest dividend stocks for long-term retirement income in India are listed below.
The Top 10 Long-Term Dividend Paying Stocks in India in 2022
The top 10 Indian dividend-paying stocks over the past ten years for retirement income are listed below. Below table statistic is based on 2022 data. You may determine which dividend-paying stocks to buy for long-term investments with this list of the best dividend stocks. Given that this list is always evolving, it may not be the same when we search for the best dividend stocks for 2022 or 2023.
| Sr. | Company Name | IV (Rs) | P/E Ratio | EPS | Dividend Payout | Avg. 3 Yrs Dividend |
| 1 | Maharashtra Scooters Limited | 1,698.04 | 571.73 | 8.31 | 649% | 244% |
| 2 | Ambuja Cements Limited | 245.03 | 24.77 | 16.00 | 151% | 60% |
| 3 | Prime Securities Limited | 181.35 | 36.55 | 4.06 | 145% | 48% |
| 4 | Cheviot Co.Limited | 1,355.49 | 9.18 | 135.77 | 145% | 70% |
| 5 | Procter & Gamble Health Limited | 1,349.87 | 52.93 | 106.51 | 122% | 120% |
| 6 | Hindustan Unilever Limited | 842.26 | 74.97 | 34.87 | 119% | 93% |
| 7 | Esab India Limited | 420.11 | 51.46 | 47.08 | 114% | 169% |
| 8 | Polyplex Corporation Limited | 2,057.12 | 12.95 | 141.66 | 102% | 57% |
| 9 | MphasiS Limited | 999.24 | 47.75 | 68.56 | 100% | 67% |
| 10 | Tata Chemicals Limited | 444.63 | 52.01 | 20.84 | 99% | 44% |
Return on the Top Indian Dividend Paying Stocks 2022
We have evaluated and computed returns of high dividend yield stocks in India 2022 using the finest dividend and bonus paying stocks in India. Let’s look at the long-term returns on money invested in the highest dividend-paying stocks in India during the past ten years.
| Sr. | Company Name | Jan’ 2012 | Nov’ 2022 | Returns in 10 Years |
| 1 | Maharashtra Scooters Limited | 300.00 | 4,530.00 | 1410% |
| 2 | Ambuja Cements Limited | 152.00 | 390.00 | 157% |
| 3 | Prime Securities Limited | 12.00 | 130.00 | 983% |
| 4 | Cheviot Co.Limited | 182.00 | 1,200.00 | 559% |
| 5 | Procter & Gamble Health Limited | 611.00 | 5,501.00 | 800% |
| 6 | Hindustan Unilever Limited | 395.00 | 2,405.00 | 509% |
| 7 | Esab India Limited | 479.00 | 2,325.00 | 385% |
| 8 | Polyplex Corporation Limited | 170.00 | 1,715.00 | 909% |
| 9 | MphasiS Limited | 307.00 | 3,355.00 | 993% |
| 10 | Tata Chemicals Limited | 142.00 | 998.00 | 603% |
| Average Returns (%) | 731% |
According to the calculation above, if you invest Rs. 100,000 for a long time in high-yield dividend companies in India, you can expect an average return of Rs. 7,31,000 (average 731 percent returns over the past ten years) in addition to your dividend income.
Additionally, you can examine the aforementioned computation and learn how to calculate stock market returns. When compared to the profits you receive from the interest rate on your bank savings account, the numbers presented here appear intriguing. Additionally, you may read more about stock market investing and the top 10 best investment plans in India.
If you compare this data from the top stocks, you might believe that investing in the best dividend stocks was a poor choice. If you want to see the differences in returns between the top dividend-paying long-term stocks in India and the best stocks to buy for the long term, you should also look at the best stocks for long-term investment in India.
Benefits of investing in high-dividend-yield stocks
The benefits of including high dividend-yield stocks in your portfolio are as follows:
- Dividend income might provide stockholders some comfort when the stock markets remain sideways.
- Investors can get payments in the form of consistent dividend income far into their senior years.
- Stocks with a high dividend yield might assist investors in establishing a passive income stream.
- Companies that consistently distribute a specific portion of their income as dividends send the message that they are producing sustainable cash flows.
- The time worth of money is a benefit of investing in high dividend yield equities. A rupee of dividend that is received today is worth more than a rupee that is received in a year.
Top 20 – List of Highest Dividend Paying Stocks in India 2022
These additional PSU stocks with high dividend yields, dividend-paying penny stocks with strong fundamentals, and dividend-paying multibagger penny stocks in India for 2022 are included below. The “Top 10 – Best Dividend Paying Stocks in India 2022″ is not included in the list below. You can use this information for analysis.
| Sr. | Company Name | IV (Rs) | P/E Ratio | EPS | Dividend Payout | Avg. 3 Yrs Dividend |
| 1 | Thyrocare Technologies Limited | 467.25 | 35.76 | 31.92 | 117% | 90% |
| 2 | Precision Camshafts Limited | 20.56 | 143.32 | 0.78 | 415% | 174% |
| 3 | Clariant Chemicals (India) Limited | 375.25 | 27.86 | 99.77 | 215% | 130% |
| 4 | Ceinsys Tech Limited | 135.34 | 15.83 | 10.24 | 126% | 70% |
| 5 | Bharat Petroleum Corporation Limited | 675.91 | 8.59 | 78.38 | 102% | 85% |
| 6 | Colgate Palmolive (India) Limited | 355.57 | 42.72 | 39.36 | 100% | 91% |
| 7 | Nestle India Limited | 2,738.56 | 84.26 | 229.34 | 93% | 110% |
| 8 | Tech Mahindra Limited | 589.74 | 28.86 | 49.69 | 89% | 50% |
| 9 | Abbott India Limited | 5,588.35 | 64.86 | 332.29 | 85% | 68% |
| 10 | Bajaj Auto Limited | 2,335.48 | 20.38 | 194.62 | 83% | 62% |
| 11 | Marico Limited | 111.15 | 63.21 | 8.87 | 83% | 74% |
| 12 | Asm Technologies Limited | 74.95 | 34.53 | 8.00 | 82% | 75% |
| 13 | Tata Elxsi Limited | 1,280.47 | 94.48 | 66.26 | 81% | 50% |
| 14 | Sangam (India) Limited | 146.70 | 10.86 | 19.49 | 81% | 45% |
| 15 | Tata Investment Corporation Limited | 1,197.33 | 44.52 | 37.48 | 79% | 85% |
| 16 | Aptech Limited | 38.61 | 67.10 | 4.58 | 75% | 95% |
| 17 | Nippon Life India Asset Management Limited | 170.37 | 39.54 | 11.47 | 72% | 74% |
| 18 | Tide Water Oil Company (India) Limited | 1,136.92 | 21.35 | 83.89 | 72% | 75% |
| 19 | HBL Power Systems Limited | 19.78 | 39.61 | 1.73 | 71% | 44% |
| 20 | Hatsun Agro Product Limited | 135.36 | 126.41 | 11.53 | 70% | 61% |
You can see the Top 20 firms in India’s finest dividend-paying stocks for the long term through 2022 in the table above. If you’re interested in the stocks that will pay the biggest dividends in India in 2022, you should surely take this list into account while assessing your data.
Conclusion
According to our analysis of the top dividend-paying stocks in India for 2022, if you’re looking for high-yield dividend stocks, your return on investment won’t be as good as it would be with other stocks. Instead of focusing on stocks with the greatest dividends, I would advise you to look for stocks or shares with the biggest return. But in the end, it depends on how each person perceives where to hunt for the highest dividend-paying stocks in India in 2022 for long-term investments with the potential for upside growth. I hope this learning experience has increased your understanding and enabled you to make the best financial decision.
