70% To 1,476% Dividend Yield: Top 3 Smallcap Stocks With High Dividend Yields; Do You Own Any?

Dividends are typically incentives that a listed firm pays to their shareholders from their net profits of respective financial years. Usually, large and stable firms deliver higher dividends. However, this is not the case with these smallcap stocks as they hold a dividend yield from over 69% to a whopping 1,476%. These stocks are Taparia Tools, Elcid Investments and Southern Gas.

The dividend yield is a financial ratio which gives clarity over the amount of dividend a listed firm pays to their shareholders against the market price. It helps investors understand the income they earn in the form of dividends for holding a stock. Mostly, high dividend yield stocks are seen to be safe. The formula for calculating dividend yield is -- Dividend Yield = Price Per Share/Annual Dividends Per Share

According to EquityMaster data, the top 3 smallcap stocks with high dividend yields are --- Taparia Tool (1,476.2%), Elcid Investments (+467.3%), and Southern Gas (69.8%)

Taparia Tools:

On BSE, Taparia Tools stood at Rs 10.50 per share with a market cap of Rs 15.94 crore.

Since March 2002, the company has declared a total of 20 dividends, as per Trendlyne data.

For the full year FY23, the company's dividend payout stood at 1550% aggregating to Rs 155 per share.

Technically, Taparia had a dividend yield of 7380.95%. However, after adjusting to bonuses/splits, the dividend yield is at 1,476.2%.

Recently in July, the company's board approved allotment of 1,21,43,000 fully paid-up equity shares having a face value of Rs 10 each, as fully paid bonus shares to the existing shareholders in the proportion of 4:1. Simply put, the company issued four equity shares for every 1 (One) equity share held by the eligible shareholders of the company whose name appeared in the books as of the record date i.e. July 11, 2023.

Incorporated in 1969, Taparia Tools has been since then consistently producing all the hand tools in India with the exact technology of its collaborators. The company has fully absorbed the production technology of its Swedish collaborator.

Elcid Investments:

On BSE, Elcid Investments share price stood at Rs 3.21 apiece with a market cap of Rs 0.06 crore.

As per the date, the company has declared 21 dividends since September 2003. In the past 12 months, the company's dividend payout was to the tune of Rs 15 per share.

At the current market price, the company's dividend yields come at 467.3%.

Founded in 1981, Elcid Investments is a non-banking financial company (NBFC) registered with RBI. Its shares are listed on BSE. Its business revolves around making investments in shares, debentures, and mutual funds.

Southern Gas:

On BSE, the stock stood at Rs 71.60 apiece with a market cap of Rs 0.16 crore.

In FY23, the company's dividend payout stood at Rs 50 per equity share having a face value of Rs 100 each (i.e. 50%)

According to the date, the company has declared 18 dividends for its shareholders since August 2002.

At the current market price, its dividend yield is around 69.83% on BSE.

Incorporated in 1963, Southern Gas is a leading manufacturer and supplier of industrial, medical, rare gases and related services with 200 + Employees on board in two major States of India. Headquartered in Cochin, the company has 9 production facilities operational in Karnataka, Kerala and Tamilnadu States.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns. in advises users to consult with certified experts before making any investment decision.