29% To 7% Dividend Yield: LargeCap Metal Stocks Are Biggest Rewarders Of Dividends In 12 Months; Do You Own?

One of the benefits of investing in equity shares is the incentives-like benefits listed companies offer. Among is also dividend stocks. There is a total of 15 companies in the large-cap segment which has offered the highest dividend yield on their shares in 12 months. The list is dominated heavily by metal stocks, but it needs to be noted that the majority of them also have the backing of the government. Vedanta has topped the list once again, followed by its subsidiary Hindustan Zinc and Coal India as the top 3 dividend yield stocks in large-caps. While Tata stocks have also given impressive dividends with its cash-cow TCS being the highest one in the group.

Dividends are paid by listed companies from their profits in a respective financial year. Meanwhile, dividend yields give a picture of a stock investment's return on dividends. However, unlike dividends which are stable quarter-on-quarter, dividend yields on the other hand follow the daily trend in the prices of equity shares on market brouses.

As per Groww's website, investors benefit from investing in high dividend yield stocks as dividends can then double as a steady income source for investors. Dividends earned passively are often reinvested by investors in the stock market to make more money. Alternatively, investors can utilise this income to start funding for their retirement or other long-term goals they wish to accomplish. The benefits of dividend-paying stocks are the profit that investors gain via share price appreciation as well as through the distributions received.

Here is the list of top 15 dividend yield companies in large-cap basket as per Axis Securities report:

1. Vedanta: Billionaire Anil Agarwal-backed Vedanta has topped this chart consistently for the past few fiscal years. The stock has paid a dividend of 69 per share in 12 months, with the latest being Rs 18.5 dividend per share. It has a dividend yield of 29%, making it the highest dividend yield firm.

2. Hindustan Zinc: Also, in the metal and mining sector, the company has paid a dividend of Rs 61.5 per share in 12 months. The latest would be Rs 7 dividend per share. It's a Vedanta-backed metal firm holding the second spot in top dividend-yielding stock to the tune of 19%.

3. Coal India: Another firm in the metal and mining segment, government-backed Coal India paid a dividend of Rs 20.25 per share in 12 months. The latest would be Rs 4 dividend per share. Currently, it has a dividend yield of 9%.

4. Oil & Natural Gas Corporation (ONGC): This would be the first in the oil and gas segment to enter the list of top 5 dividend-yielding stocks. ONGC, the country's leading oil explorer, has paid a dividend of Rs 14 per share in 12 months. The government-backed oil stock has a dividend yield of 8%, and its latest payout would be Rs 0.5 dividend per share.

5. Power Grid Corporation: Yet another government-backed stock but in the utility segment. The stock has rewarded its shareholders with a total dividend payout of Rs 17 per share. The latest would be a Rs 4.75 dividend per share. At present, it has a dividend yield of 7%.

These five stocks are not just the highest dividend-yielding stocks but also have given inflation-beating returns to investors.

Among others, private tech giants Tech Mahindra and HCL Technologies also enter the top 10 list with a dividend yield of 4% each. These two stocks have paid a total dividend of Rs 50 per share and Rs 48 per share respectively in 12 months.

Further, GAIL India with a dividend payout of Rs 4 per share in 12 months, has a yield of 4%. ITC and NTPC were the last two stocks in the top 10 list with a dividend yield of 3% each.

Other stocks that have a 3% dividend yield in the large-cap basket are --- NTPC with a payout of Rs 7.25 dividend per share, Tata Consultancy Services (TCS) with a dividend payout of Rs 116 per share, Hero MotoCorp with a dividend of Rs 100 per share, Indian Oil with a dividend of Rs 3 per share, Tata Steel with a dividend of Rs 3.6 per share, and Bajaj Auto with a dividend of Rs 140 per share in 12 months.

In the total top 15 dividend-yielding stocks in the large-cap basket, four belonged to the metals and mining segment, while 3 each belonged to the oil & gas and technology sector. Further, two each were in utilities, and auto & ancillaries. ITC is the only stock in the staples segment.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author or 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.