Top 10 – Best Dividend Paying Stocks for Long Term in India 2018 1


There are people who are looking forward for best dividend paying stocks for the long term in India 2018 for retirement income. Investors mainly look forward for top dividend paying stocks in India for passive income. They mainly follow the historical data of highest dividend paying stocks in India in last 5 years or last 10 years. Also there are people who are confused to conclude where to buy highest dividend paying stocks or best stocks for investment. Today we are going to discuss little bit on this based on top dividend paying stocks in India and high dividend yield stocks in India 2018, 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 paying 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.


Key Facts about High Dividend Yield Stocks in India:

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 2017, 2016 will also be listed under high yield dividend stocks for 2018 and 2019 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 2017-2018 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 2018 or 2019 years.

List Top 10 – Best  Last Price   Latest   Dividend Yield % at these prices 
No. Company Name  By Jan’ 2018  Div %   52 High   52 Low   Current 
1 P and G 9,503.70 3,890.00 3.93 6.48 4.09
2 Oracle Fin Serv 4,076.65 3,400.00 4.08 6.05 4.17
3 Vedanta 329.35 1,945.00 5.61 10.12 5.91
4 Hind Zinc 311.10 1,470.00 8.82 13.30 9.45
5 Sonata 279.00 900.00 3.16 6.29 3.23
6 S Chand and Co 520.95 525.00 3.75 6.17 5.04
7 NMDC 142.65 515.00 3.38 5.01 3.61
8 Accelya Kale 1,432.50 510.00 2.70 4.64 3.56
9 BPCL 512.20 310.00 5.62 7.77 6.05
10 HPCL 416.80 300.00 6.09 11.14 7.20

Some Additional Highest Dividend Paying Stocks in India:

List Top Best Stocks  Last Price   Latest   Dividend Yield % at these prices 
No. Company Name  By Jan’ 2018  Div %   52 High   52 Low   Current 
1 Greaves Cotton 141.00 275.00 3.08 4.90 3.90
2 Clariant Chem 612.00 250.00 2.98 4.52 4.08
3 SQS India BFSI 535.70 240.00 2.48 5.93 4.48
4 Castrol 192.20 220.00 4.44 6.25 5.72
5 LEEL 290.20 215.00 6.32 12.94 7.41
6 Chennai Petro 433.80 210.00 4.37 9.27 4.84
7 Coal India 266.80 199.00 5.69 8.52 7.46
8 IOC 390.40 190.00 4.10 6.74 4.87
9 Bharti Infratel 373.95 160.00 3.31 5.68 4.28
10 RSWM 397.00 125.00 2.44 4.12 3.15
11 ONGC 193.90 121.00 2.86 3.90 3.12
12 Indian Card 205.00 120.00 4.44 7.33 5.85
13 MOIL 246.70 110.00 3.85 7.65 4.46
14 REC 159.90 96.50 4.31 8.55 6.04
15 NLC India 108.45 73.40 5.97 10.03 6.77

In the above table you have observed that in starting of 2018 – P and G, Oracle financial services, Vedanta, Hindustan Zinc, Sonata, Coal India, Castrol, IOC, 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.

By Jan’ 2018 P and G  Oracle Fin Serv  Vedanta  Hind Zinc  Sonata 
MARKET CAP (RS CR): 30,918.85 34,807.10 120,901.74 130,562.36 2,908.18
P/E: 69.66 27.65 11.96 13.32 17.35
BOOK VALUE (RS): 162.08 382.59 200.23 72.91 55.59
DIV (%): 3890 3400 1945 1470 900
INDUSTRY P/E: 64.06 20.58 12.68 15.7 20.58
EPS (TTM): 136.73 147.52 27.2 23.19 15.94
P/C: 61.4 26.19 7.37 11.25 16.44
PRICE/BOOK: 58.77 10.66 1.62 4.24 4.97
DIV YIELD.(%): 4.08% 4.17% 5.98% 9.51% 3.25%
FACE VALUE (RS): 10 5 1 2 1

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.

 Dividend Yield Stocks 2007 2017 Returns (%)
P and G. 904.00 9,395.00 1,039.27
Oracle Financial S. 1,962.00 4,098.00 208.87
Vedanta 82.00 309.00 376.83
Hindustan Zinc 78.00 274.00 351.28
Sonata 69.00 278.00 402.90
Average Returns of 10 years : 478.83

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.4,78,830 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 in India 2018, 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.

 

- Tutorial Course - Top 10 - Best Investment Options in India -

» e-Learning Chapter 1: Top 10 - Best Stocks for Long Term Investment in India

» Currently Reading: Top 10 – Best Dividend Paying Stocks for Long Term in India

» e-Learning Chapter 3: Top 10 – Best Stocks to Buy for Long Term Investment in India

» e-Learning Chapter 4: Top 10 – Best Large Cap Stocks to Buy for Long Term Investment in India

» e-Learning Chapter 5: Top 10 – Best Mid Cap Stocks to Buy for Long Term Investment in India

» e-Learning Chapter 6: Top 10 – Best Small Cap Stocks to Buy for Long Term Investment in India

» e-Learning Chapter 7: Top 10 – Best Mutual Funds to Invest in for Long Term in India

» e-Learning Chapter 8: Top 10 – Best Mutual Funds for SIP to Invest in India

  

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One thought on “Top 10 – Best Dividend Paying Stocks for Long Term in India 2018

  • Sanjay Soni

    You have seriously changed my way at looking toward dividend stocks for investment. I was always looking for best dividend paying stocks last 5 years data from Indian companies or high dividend yield stocks blue chip of India and invest it. Selecting a high return stock is more useful than highest dividend paying stocks. But frankly speaking you have taught me a lot. Thanks a lot again.. 🙂