Top 10 Dividend Stocks of the Indian Stock Market

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Top 10 Dividend Stocks of the Indian Stock Market

You have heard the word dividend investing in the stock market. Dividend investing is a strategy of buying quality stocks that pay regular dividends.

It is to be noted that good stocks pay dividends several times in a year as a part of their profits. The dividends include final dividends, special dividends, and interim dividends.

If you are interested in dividend growth investing, you should keep the top 10 dividend stocks on your watch list.

But who are the top 10 dividend stocks of the Indian stock market?

In the present blog post, I will discuss the top 10 dividend stocks of the Indian stock market and how to invest in these dividend stocks.

The top 10 dividend stocks not only paid their dividends consistently over time but have also increased the dividends.

If have not read my earlier post on dividend growth investing, you may read this. The link is given below.

Dividend growth investing

What are top dividend stocks?

The top dividend stocks are good quality stocks that pay regular dividends.

The top dividend stocks are high-yielding stocks (companies) listed on National Stock Exchange (NSE) while satisfying stability and tradability requirements.

The top dividend stocks aim to maximize the dividend yield with stability and tradability.

A top dividend stock should have the following.

The stock’s trading frequency should be at least 90% in the last six months.

The stock must have reported positive net profits as per the latest annual audited results.

Top 10 dividend stocks of the Indian stock market

The followings are the top 10 dividend stocks of the Indian stock market.

  1. Tata Consultancy Services Ltd.
  2. ITC Ltd.
  3. Infosys Ltd.
  4. Hindustan Unilever Ltd.
  5. Larsen and Toubro Ltd.
  6. Tata Steel Ltd.
  7. Tech Mahindra Ltd.
  8. Nestle India Ltd.
  9. Power Grid Corporation of India Ltd.
  10. Bajaj Auto Ltd.

Tata Consultancy Services Ltd.

TCS

Tata Consultancy Services Ltd. is a global leader in IT services, consulting, and business solutions, having a huge network of innovation and delivery centers.

Tata Consultancy Services Ltd. belongs to the information technology sector.

Dividend yield: 1.21%

The company has a good dividend track report. The company has consistently declared dividends since 2004.

You can check the details of the dividends of Tata Consultancy Services Ltd. on the MoneyControl website.

ITC Ltd.

ITC Ltd., formerly known as India Tobacco Company Ltd., is a wholly-owned subsidiary of British American Tobacco Plc., headquartered in Kolkata, West Bengal.

ITC

ITC Ltd. belongs to the FMCG sector. The company is well known for producing tobacco products.

Dividend yield: 4.94%

The company has a good dividend track report. The company has consistently declared dividends since 2001.

Infosys Ltd.

Infosys Ltd., headquartered in Bangalore, is a multinational IT company that provides business consulting, information technology, and outsourcing services.

Infosys Ltd. belongs to the information technology sector.

Dividend yield: 2%

The company has a good dividend track report. The company has consistently declared dividends since 2000.

Hindustan Unilever Ltd.

Hindustan Unilever Ltd. is a consumer goods company, headquartered in Mumbai, India. It is a subsidiary of Unilever, an Anglo-Dutch company.

Hindustan Unilever Ltd. belongs to the FMCG sector.

Dividend yield: 1.28%

Hindustan Unilever

The company has a good dividend track report. The company has consistently declared dividends since 2001.

Larsen and Toubro Ltd.

Larsen and Toubro Ltd., commonly known as L&T, is India’s premier infrastructure developer.

Larsen and Toubro Ltd., commonly known as L&T, is India’s premier infrastructure developer.

Larsen and Toubro Ltd. belongs to the construction sector. The company is engaged in doing infrastructure-related works.

Dividend yield: 1.34%

The company has a good dividend track report. The company has consistently declared dividends since 2001.

Larsen and Toubro

Tata Steel Ltd.

Tata Steel Ltd. is a multinational steel-making company, based in Jamshedpur, Jharkhand. It is headquartered in Mumbai, Maharashtra, India. It is a subsidiary of the Tata Group.

Tata Steel

Tata Steel Ltd. belongs to the metals sector. The company is engaged in producing finished steel.

Dividend yield: 2.11%

The company has a good dividend track report. The company has consistently declared dividends since 2001.

Tech Mahindra Ltd.

Tech Mahindra Ltd. is a multinational company that provides information technology and business process outsourcing services. It offers innovative and customer-centric information technology services.

Tech Mahindra Ltd. belongs to the information technology sector.

Dividend yield: 4.59%

Tech Mahindra

The company has a good dividend track report. The company has consistently declared dividends since 2007.

Nestle India Ltd.

Nestle is the world’s largest food and beverage company.

Nestle India

Nestle India Ltd. belongs to the FMCG sector. It produces dairy products.

Dividend yield: 1.19%

The company has a good dividend track report. The company has consistently declared dividends since 2001.

Power Grid Corporation of India Ltd.

Power Grid Corporation of India Ltd. is an Indian government electricity board and is headquartered in Gurugram, India.

Power Grid Corporation of India Ltd. is an energy company and is engaged mainly in the transmission of electrical power. It transmits about 50% of the total power generated in India on its transmission network.

Dividend yield: 4.66%

The company has a good dividend track report. The company has consistently declared dividends since 2008.

Power Grid Corporation of India

Bajaj Auto Ltd.

Bajaj Auto Ltd. is the world’s 3rd largest manufacturer of motorcycles and the largest manufacturer of three-wheelers.

Bajaj Auto

Bajaj Auto Ltd. is an automobile company.

Dividend yield: 3.62%

The company has a good dividend track report. The company has consistently declared dividends since 2008.

How to invest in the top 10 dividend stocks

Now you have the top 10 dividend stocks on your radar.

How to invest in the top 10 dividend stocks?

Whenever you want to invest in a stock, whether it is a dividend stock or not, be sure that the stock quality is good.

In the top 10 dividend stocks, there is no question about the stock quality. Because these are from the Nifty 50 stocks (the top 50 stocks of NSE).

The best time to invest in these stocks when the stock intrinsic value is higher than the current price of the stock.

Use my stock intrinsic value calculator to calculate the intrinsic value of a stock.

Suppose you calculated the intrinsic value of a stock and found that the stock’s current price is much higher than its intrinsic value.

Do not invest now. Wait ……

After some months, again calculate the stock intrinsic value of these top 10 dividend stocks.

The right time to invest in these top 10 dividend stocks is when the intrinsic value of a stock is higher than the current market price.

This is a continuous process and you should check again and again (at least in every quarter once the stock fundamentals are changed).

Another way to invest is to check the upcoming dividend stocks. If a stock from the top 10 dividend stocks is there in the upcoming dividend lists, calculate its intrinsic value. Moreover, if the intrinsic value is higher than the market price of the stock, you can start investing in the dividend stocks.

If you like the post, share the knowledge among your friends and give your valuable comment.

Also read:

How you can start investing with Rs. 5000

How you can be a crorepati at retirement

Yes bank share price analysis

How to invest in Nifty 50 stocks

Disclaimer: The views expressed in the present blog post are that of the author and not for any suggestion to buy, sell, or hold any stock. Investments in the stock market are subject to market risks. Hence, do your research on a specific stock or consult your financial advisor before you invest.


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