In the scenario of decreasing FD interest rates, the main question of most of the people is “Where to invest money?” because on one side FD interest rates are falling and on other side, inflation is rising. Due to this, the interest earned may be at a rate lesser then the rate of inflation. So, what is the benefit of such investment. Investment in shares is being done by a large number of investors presently. But, they must know the Highest Dividend Payout Shares to minimize risk and earn good return.
So, here we are giving a practical approach with details to know how we can earn good income on investments in equity shares, income more than Fixed Deposits. There are a large number of dividend paying companies with constant dividend payment history. Some of the companies which have given highest dividend payout during last 2-3 years is given below.
High Dividend Vs High Dividend Payout Ratio(Dividend Yield)
A company may give high amount of dividend, but its share may be priced high. So, dividend amount is not so relevant. Dividend payout, i.e., the yield in the form of dividend on the amount invested (the return on investment) is only relevant.
Listed of Highest Dividend Payout Shares :
| Company Name | Dividend 2018-19 | Dividend 2019-20 | Dividend 2020-21 | Current Market Price (CMP) on 14.07.2021 | Latest Dividend Payout/ Yield on CMP |
| Coal India Ltd. | 13.10 | 12.00 | 16.00 | 148.10 | 10.80% |
| Indus Towers Ltd. | 21.50 | 13.90 | 24.22 | 236.70 | 10.23% |
| PTL Enterprises | 2.50 | 2.50 | 5.00 | 49.65 | 10.07% |
| HPCL | 15.90 | 9.75 | 22.75 | 270.05 | 8.42% |
| Balmer Lawrie Investments | 34.00 | 37.50 | 38.00 | 487.75 | 7.79% |
| SJVN Ltd. | 2.15 | 2.20 | 2.20 | 28.85 | 7.63% |
| REC Ltd. | 11.00 | 11.00 | 11.00 | 148.00 | 7.43% |
| PTC India Ltd. | 4.00 | 5.50 | 7.50 | 101.95 | 7.36% |
| Hindustan Zinc | 20.00 | 16.50 | 21.30 | 335.20 | 6.35% |
| NHPC | 1.46 | 1.50 | 1.60 | 26.00 | 6.15% |
| Stanrose Mafatlal | 6.00 | 6.00 | 6.00 | 103.25 | 5.81% |
| ITC Ltd. | 5.15 | 10.15 | 10.75 | 204.15 | 5.27% |
| Power Grid | 8.33 | 10.00 | 12.00 +bonus 1 for 3 | 229.95 | 5.22% |
Also, HPCL, REC, SJVN, Coal India, NHPC, Power Grid & Balmer Lawrie are PSUs, so risk factor is comparatively low.
So, if a company is constantly paying good dividend year by year, then investment in shares of such company can be a low risk investment because even if share price may fall, we may expect at least some return in the form of dividend. Therefore, chances of loss are quite low.
Further, FDR interest rates are going down gradually. Therefore, present situations may be treated as an opportunity for investment in such shares to earn income more than FDR.
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Disclaimer : This document has been prepared by author after doing his research and study of data of the above companies on 14.07.2021. Though every effort has been made to avoid errors or omissions in this document yet any error or omission may creep in. Therefore, it is notified that we shall not be responsible for any damage or loss to any one, of any kind, in any manner there from. On the contrary it is suggested that to avoid any doubt the user should cross check the latest information from the trusted websites. Further, investments in shares are always subjected to market risks and the future dividends may be subjected to changes in policies of the respective companies.
