What is Dividend Yield? Top Dividend Yield Stock in India

         Dividend yield is a financial ratio that shows the annual dividend payment of a company relative to its share price. It is calculated by dividing the annual dividend per share by the current market price per share and expressing the result as a percentage. In this article we are going to discuss Top Dividend Yield Stocks in India.

          For example, if a company pays an annual dividend of INR 5 per share and its current market price is INR 100, then its dividend yield would be 5%. Dividend yield is an important metric for investors who are seeking to generate income from their investments. It provides an indication of how much return a stock is generating in the form of dividends compared to its current market price.

             However, it’s important to note that dividend yield is not the only factor to consider when making investment decisions. Investors should also look at a company’s financials, growth prospects, and other relevant factors before investing. here are a few tips that might help you to choose high dividend yield stocks in India.

1. Power Finance Corporation (PFC)

Dividend Yield: 9.9%

         Power Finance Corporation Limited is a non-banking financial company engaged in business of financing companies. Its midcap company and market cap is ₹44,670 cr with low risk.

2. Rural Electrification Corporation Limited (RECLTD)

Dividend Yield: 8.8%

           REC Limited, formerly Rural Electrification Corporation Limited is a subsidiary of Power Finance Corporation Limited which in turn is under the ownership of the Ministry of Power, Government of India. It is also a midcap company and market cap is ₹32,744 cr.

3. Hindustan Zinc Limited (HZL)

Dividend Yield: 8.6%

          Hindustan Zinc Limited (HZL) is a large cap company, which is engaged in the mining and smelting of zinc, lead and silver metal in India. The market cap of the company is ₹1,31,851 cr and dividend yield is 8.6%.

4. NHPC Limited (NHPC)

Dividend Yield: 7.9%

           NHPC Limited is an Indian government hydropower board under the ownership of Ministry of Power, Government of India that was incorporated in the year 1975. The market cap of the company is ₹41,435 cr and its a midcap size company.

5. Coal India Limited (COALINDIA)

Dividend Yield: 7.4%

           Coal India Limited (CIL) is a holding company. The Company is engaged in the production and sale of coal. It serves power and steel sectors, as well as cement, fertilizer, brick and kilns industries, among others. It is one the best government listed company with large cap size. It is the part of the nifty 50 companies with market cap of the company ₹1,37,829 cr.

Here are some additional high dividend yield companies in India that are listed in Stock Market you can invest on those high dividend yield stocks.

6. SJVN Limited (SJVN) – Dividend Yield: 7.3%

7. NMDC Limited (NMDC) – Dividend Yield: 6.9%

8. National Aluminium Company Limited (NALCO) – Dividend Yield: 6.6%

9. Oil India Limited (OIL) – Dividend Yield: 6.5%

10. Bharat Petroleum Corporation Limited (BPCL) – Dividend Yield: 6.2%

Note about Top Dividend Yield Stocks:

          A high dividend yield doesn’t always mean that it’s the best investment option. It’s important to analyze the company’s financials, growth prospects, and risks before investing in any stock. Also, consult with a financial advisor or professional before making any investment decisions.