5 Dividend Stocks in 2020 with high Dividend Yield - Top Dividend Paying Stocks in India | Groww - YouTube

Hey friends! Why do you invest in stocks? It is because you want to idle money in such stocks where you earn a high return when their prices escalate.

The return on an investment is not only because of the share price. There is one more way that can give you a return on invested money. The dividend is one such income that you receive on investment as a shareholder.

If you have made an investment in a company, assume that its share price increased by only 10%. But that company gave a 10% dividend per share of the invested amount. Here your total income will be 20%.

Hence, it is quite important for you to understand that there are two forms of returns, price appreciation, and dividend yield, whenever you make an investment in a company.

A great dividend yield means that the investment amount returns are because of the dividend. Following this, we have brought today's video. The dividend is such a topic that is not thoroughly discussed in the market.

If you invest in a company, then dividend income can also be a great return for you. Today's report card talks about such companies that gave high dividends to their investors.

We have chosen this list randomly out of small, large, and mid-cap companies. It is possible that some companies might not be included, while a small-cap company might be included over here.

Hence I am giving you a disclaimer beforehand. Here we have not placed any rationale, but random companies have been chosen.

There is no bias in this video; the companies have been chosen for purely educational purposes so that you understand the importance of dividend income.

Let's speedily start today's report card and talk about 5 such companies that gave high dividends to their investors.

Watch this video till the end as I will talk about more such companies that gave wonderful results in terms of dividends to their investors. These names are not in the report card, but they are beneficial for you to know as an investor.

I, Jagdeep Singh, welcome you to Groww's youtube channel. Without taking much time, let's start today's video.

The first company is Indiabulls Housing Finance Limited. This is the first company on our report card that has given the highest return to its investors.

Here we are not talking of the highest dividend but the highest dividend yield. The dividend yield is the Annual dividend ( as per parameter of 12 months) divided by the current price.

This tells how high the company's dividend is—the dividend yield of Indiabulls Housing Finance Limited is 15.8%.

It means that if you would have bought this company at a lower level then besides stock price appreciation you would have earned a dividend yield of 15.8%. This is the first and the highest number of dividend on our report card. Hence this company is there in our report card.

The business of the company is Housing finance. If you want to build your house, you can visit this company for finance.

The current share price of this company is around Rs.190. In the last 1 year, it has given a negative 28% return to its investors.

But the interesting thing over here is that at one point its share price was Rs.1,300. But after problems in the NBFC sector, its share price fell by huge amounts.

The market capitalization of this company is Rs. Rs. 9000 cr. The P/E ratio of this company is slightly above 7. But the P/E ratio (compared to) of industry average (of housing finance industry) is 20.

In comparison, we find that the company's P/E ratio is quite low.

Now let's talk about the second company of the report card- NLC India. Before discussing the business model, let me tell you that India's Government is a Nav ratan company with the main business as power generation and mining.

Its share price is currently at Rs.53. In the last one year, its share price has been constant.

One year back also, its share price was Rs.53. In the last one year, it has not given any return in the share price but has given a dividend yield of 12.4%.

The dividend yield of the company is more than 12%. Hence this company is the second one in our report card. The market capitalization of the company is more than Rs. 7,500 cr.

The P/E ratio of the company is slightly above 5. The P/E ratio as per industry average (as compared to the company) is around 10.

Hence the P/E ratio of the company is relatively low as compared to the industry average. Its share price has been quite constant in the last year, but it has given its investors an excellent dividend yield.

Now let's talk about the third company of the report card- Oil India Limited. As you can infer from its name, this company works in the segment of crude oil and LPG exploration.

Its dividend yield is 9.92%, which is almost equal to 10%. The market capitalization of Oil India Limited is around Rs.11,000 crore.

The P/E ratio of Oil India Limited is slightly above 4. As compared to the industry P/E ratio of 13, its ratio is quite low.

The share price of Oil India Limited is currently at Rs.104. One year back, its share price was Rs.153. In terms of share price, this company has not given great returns to its investors.

In the last one year, this company has given a negative 30% return to its investors. However, as you know that our today's parameter is the dividend yield, where this company has performed really well.

The dividend yield of this company is around 10%. This makes this company the third company on our report card that has given a remarkable dividend yield to its investors.

Now let's talk about our report, card's fourth company, which has given a high dividend to its investors. This is a government undertaking company- Hindustan Zinc.

The business of the company includes exploring and processing minerals. The market capitalization of the company is more than Rs.1 lakh cr.

The P/E ratio of Hindustan Zinc is around 16. Its industry average is around 19, which is almost comparable to the industry. (slightly less)

The current share price of Hindustan Zinc is Rs.238. One year back, its share price was around Rs.214. It has given a 15% return to its investors in terms of price.

Along with this, it has a 9% dividend yield. This means combining both the things it has given an excellent return to its investors.

From here, we learn that many companies give you a great dividend and a price appreciation. On combining both, total returns should be compared. Hindustan Zinc has performed well in giving returns to its investors.

Its dividend yield is equal to 10% while its price appreciation in the last one year has given a 15% return to its investors.

Now let's talk about the last company of our report card- Coal India. Its market capitalization is more than Rs.80,000 cr.

The dividend yield of Coal India is 8.94%. Its dividend yield is almost the same as of Hindustan Zinc. The P/E ratio is around 6.

In the industry where Coal India operates, the P/E ratio is 19. As compared to the industry, its P/E ratio is quite low. This can be seen as a positive thing.

The current share of Coal India is Rs.134. In the last one year in terms of price appreciation, this company has given a negative 28% return.

It has given a dividend yield of 8.94% to its investors. Because of this, it is the fifth company on our report card. An interesting thing over here is that government-owned companies give a great dividend to their investors from time to time.

Hindustan Zinc gave dividends but also gave a high return to its investors in terms of price appreciation. My motive behind this video was that as an investor in a company, besides the share price hike, the dividend should also be important for you.

This is also a source of income. Hence you should check the dividend payout of a company before investing in it.

Now, let's move to the second part of the video as told to you initially in the video. Besides the five companies of our report card, I will tell other companies' names that gave great dividends to its investors in recent times.

The first company on this list is REC limited, which has given an 8.6 % dividend yield to its investors.

The second company on the list is Power Finance Corporation, which has given an 8.4% dividend yield to its investors in recent times.

Another company on this list is PTC limited that has given a 9% dividend yield to its investors in recent times.

Now you might be wondering about the exclusion of these companies from the main list. We mainly talked about large-cap companies(companies with a market capitalization of more than Rs.1000 cr) over there.

These companies have a low market capitalization, but they have given a remarkable dividend yield to their investors in the past year.

DB Corp is also a company on our list that has given a dividend yield of more than 10% to its investors.

This was a small list that I gave as a bonus tip. All the companies that were mentioned in this video hold no buy/sell recommendations. This is a video made with a purely educational purpose.

We want you to know the importance of dividend yield as an investor. Here you must know the companies that have given a great dividend to their investors in the last year. i.e., their dividend yield has been excellent.

I hope that you liked today's video. If yes, then press the like button. Also, comment on the name of the company where you will place your investment.

Let me again tell you that this video is for pure education purposes. If you have not subscribed to Groww's channel, then surely do it. On this channel, we bring educational videos every week that can aid you in becoming an intelligent investor.

Happy investing!