Top 10 – Best Dividend Paying Stocks for Long Term Retirement Income in India


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There are people who are looking forward for best dividend paying stocks for the retirement income. Investors mainly look forward for highest dividend paying stocks for passive income. Also there are people who are confused to conclude where to buy highest dividend stocks or best stocks for investment. Today we are going to discuss little bit on this so that you can take firm decision on your capital investment. When you are searching for best returns on investment for long term then you should first learn and take the knowledge on differences between best dividend stocks to buy and best stocks to buy. As you know everything in this world has advantages and disadvantages. Let us firstly understand how best dividend paying stocks could impact your long term growth.

1. Inversely Proportion: Share price of the stocks is inversely proportion to dividend yield stocks / shares. For example: If dividend yield trend to move upwards then equity share value of the stock will gradually trend to move downwards.

2. Inconsistent Dividends: It is observed that dividend paying is not constant every year, it keeps on changing. It is rarely identified that companies who are listed among top dividend paying stocks in 2016, 2015 will also be listed under high yield dividend stocks for 2017 and 2018 years as well.

3. Falling in Bullish Market: Bullish trend of the market is the place where people trend to earn highest returns on their investment as share price moves in upward direction. In such cases dividend yield of the stocks will trend in downward direction, as stock price is inversely proportion to dividend of a stock.

4. Risk in Capital Appreciation: It is mainly observed that best dividend paying stocks for the long term may not give you as much as returns on investment as other stocks. When you choose to invest in top dividend stocks for long term, you can easily figure it out that returns in last 10 years for high yield dividend stocks is much lesser than ordinary equity stocks.

5. Misled to Investors: When company announces dividend rates and get listed in best long term dividend stocks, it is often that investor assumes that it’s a return on capital investment but it is not. Return on investment cannot be calculated based on high yield dividend stocks.

Let us further step inside and look deep into details to better understand this concept. Here we are going to list down best dividend stocks for the long term retirement income in India


Wiki Finance pedia - e-learning course on dividend paying stocks Wikipedia Chapter - Top 10 - Best Dividend Stocks for the Long Term Retirement Income in India Top 10 Best Dividend Paying Stocks for the Long Term Investment:

Below is the list of top best long term dividend paying stocks for retirement income in India. Below table statistic is based on 2016 data. This list of top dividend stocks will assist you to choose which dividend stocks to buy for long term investment. This list may not be same when we look for top dividend stocks for 2017 or 2018 years.

Sr.Top 10Last PriceLastDividend Yield % at these prices
No.Company NameBy 2016Div %52 High52 LowCurrent
1Oracle Fin Services         3,576.65    13,300.00         14.96      21.41          18.59
2Interglobe Aviation           952.40      3,516.90         25.20      50.10          36.93
3HCL Tech           740.00      1,500.00           2.99        4.25            4.05
4Hind Zinc           198.45      1,390.00         13.67      23.72          14.01
5Indiabulls Hsg           752.85      1,300.00           3.17        4.72            3.45
6Sonata           163.80         900.00           4.83        7.15            5.49
7Financial Tech             82.95         850.00         10.02      24.22          20.49
8ITC           251.80         850.00           3.28        4.75            3.38
9CARE           975.00         790.00           5.36        8.93            8.10
10JB Chemicals           271.95         700.00           4.40        6.13            5.15

Some Additional Highest Dividend Paying Stocks in India:

Sr.Company NameLast PriceLastDividend Yield % at these prices
No.By 2016Div %52 High52 LowCurrent
1Rico Auto             44.50         300.00           4.69      10.83            6.74
2BPCL           596.05         225.00           1.95        4.14            3.77
3MPS           697.80         220.00           2.37        3.61            3.15
4Coal India           333.00         207.00           4.63        7.61            6.22
5Oil India           375.05         200.00           4.22        6.66            5.33
6Hinduja Global           400.00         200.00           3.34        5.48            5.00
7ONGC           227.90         190.00           3.34        5.05            4.17
8MphasiS           532.00         160.00           2.57        4.19            3.01
9Indiabulls Vent             30.40         150.00           7.93      22.90            9.87
10Guj Mineral             82.70         150.00           3.13        5.73            3.63
11NALCO             48.40          35.00           3.40        6.25            3.62
12Aptech             73.20          32.50           4.01        6.63            4.44
13Rolta             65.40          30.00           2.28        4.99            4.59
14Binani Ind             87.00          30.00           3.09        6.00            3.45
15SAIL             48.60          20.00           3.23        5.97            4.12

In the above table you have observed that in 2016 – Oracle financial services, Hindustan Zinc, Sonata, Coal India, Interglobe aviation, JB chemicals, ONGC are one of the best dividend paying stocks. If you are looking forward to best dividend stocks to buy then you should think of this equity shares. But I would suggest before you conclude yourself, let us look for some more information which can change your thinking toward investment in dividend paying stocks.


Below are some of the market data of top dividend paying stocks in India.

 2016 DataOracle Financial S.Hindustan ZincSonataCoal IndiaInterglobe Aviation
MARKET CAP (RS CR)30,37184,0841,719209,70334,405
P/E26.0511.5410.8414.6917.29
BOOK VALUE (RS)405.6488.4844.7986.4975.93
DIV (%)13300.00%1390.00%900.00%207.00%3516.90%
INDUSTRY P/E19.2110.1519.2112.2112.56
EPS (TTM)137.317.2415.0822.655.09
P/C24.9210.5210.4312.5313.8
PRICE/BOOK8.822.253.653.8412.54
DIV YIELD.(%)18.59%13.97%5.50%6.23%36.92%
FACE VALUE (RS)5211010

Return on Capital Investment:

Let us now look for the returns on capital investment for last 10 years when investing in best dividend paying stocks for long term in India.

20062016Returns (%)
Oracle Financial S.         1,135.00      3,577.00        315.15
Hindustan Zinc             28.00         199.00        710.71
Sonata             38.00         164.00        431.58
JB Chemicals           113.00         274.00        242.48
ONGC           201.00         227.00        112.94
Average Returns of 10 years :        362.57

Here we have seen that when you invest Rs.1,00,000 in high yield dividend stocks for long term, you can expect to get Rs.3,62,570 as a return on your investment apart for your dividend income. The data here look exciting when you compare with returns you get from your bank saving account. But when you compare this data from best stocks you may thing that your decision towards investment in best dividend stocks was inappropriate. To better understand check out Top 10 – Best stocks to buy for long term in India to see the difference on returns between best dividend stocks and best stocks which we are talking about. Hope you will get all your answers for your questions.


Conclusion:

As after reviewing top best dividend stocks, we can conclude that if you are looking forward for high yield dividend paying stocks then return on capital investment will be not so attractive as other stocks. I would recommend you to look forward for highest return stocks / shares rather than highest dividend stocks. But finally it depends upon everyone’s perception where to look for best dividend paying stocks for the long term for investment or good stocks to buy. Hope this learning course has enhance your knowledge and helped you to take right step in your capital investment.

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