Dividend Stocks Beat Nifty; 11 Stocks Hit New 1-Year Highs On Nov 30; HCL, HAL, GAIL, BPCL In List

While the start of the year witnessed impressive upsides in midcaps and small-cap stocks, turning many of them into a multi-bagger. But there is a new wave, and investors are seen to be betting heavily on dividend-paying stocks. This month, for instance, the dividend stocks index has outperformed the Nifty 50, and its yearly gain is double-digit far better than the benchmark. For the past two weeks, dividend stocks especially the large-cap baskets have continued to hit back-to-back new 1-year highs. Thursday was no different as the Nifty Dividend Opportunities 50 Index extended its record-high performance.

The Nifty Dividend Opportunities 50 Index is designed to provide exposure to high-yielding companies. The methodology employs yield-driven selection criteria that aim to maximize yield while providing stability and traceability.

Of the 50 stocks listed on the Nifty Dividend Opportunities Index -- IT companies have the highest weightage with 27.72%, followed by FMCG with 21.34%, financial services at 11.72%, oil gas and consumable fuels at 11.57%, power sector at 8.71%, metals and minings with 8.46%, capital goods with 4.44%, and automobile & auto components with 4.07%. Other sectors which hold below 1% weightage are chemicals, consumer durables, services and other segments.

On November 30th, the Nifty Dividend Opportunities 50 index touched yet another fresh 52-week high of 4,894.65. The index's 30-day gains are about 8.28%, while its year-on-year upside is a whopping 26%.

On the other hand, Nifty traded volatile and ranged from 20,136.15 to 20,015.85, however, still a couple of points away from its all-time high of 20,222.45.

The dividend index beats Nifty 50 whose 30-day gain is around 5%, and the yearly upside is merely 8%, data from NSE showed.

Here are the top dividend-paying stocks that have been driving the Nifty Dividend Opportunities index at sky-high levels. The majority of these stocks were in green and touched new 52-week highs, some continuing on the trend of back-to-back highs such as Hindustan Aeronautics (HAL), BSE, Colgate-Palmolive, and Bajaj Auto. Today, some of the big winners also include tech giants like HCL Tech.

Details Here Of latest 52-week highs and dividend payouts in 12 months:

1. GAIL (India):

This natural gas company touched a new 52-week high of Rs 134.20 apiece. It gained by nearly 7% on November 30th.

In the last 12 months, GAIL paid a dividend of Rs 4 per share to its shareholders. It has a dividend yield of 3.02%.

2. BSE:

Stock exchange BSE has seen a commendable upside after Jefferies initiated coverage on it. The brokerage has suggested 'BUY' on BSE shares for a target price of Rs 2,700 apiece. Currently, the stock has a dividend yield of 0.47%.

On NSE, the stock touched a fresh 52-week high of Rs 2,544.30 apiece and rallied by nearly 5% in the latest trade.

In 2023, so far, BSE paid a dividend of up to Rs 12 per share or 600% to its shareholders, which is lower compared to a dividend of Rs 13.50 per share or 675% in 2022, and 1050% or Rs 21 per share in 2021.

3. LIC Housing Finance:

This HFC touched a new 52-week high of Rs 494 apiece on NSE and advanced by 3.2% in the day.

LIC Housing has paid dividends up to Rs 8.50 per share in 2023 so far. It has a dividend yield of 1.73%.

4. Hero Motocorp:

Two-wheeler giant Hero MotoCorp touched a fresh 52-week high of Rs 3,884.50 apiece. On Thursday, the stock zoomed by 4%. Currently, its dividend yield is at 2.61%.

For FY23, Hero MotoCorp paid two dividends. Firstly, the interim dividend of Rs 65 per share or 3250%, and the final dividend of Rs 35 per share or 1750%. Overall, in the financial year 2022-23, the company paid a total of Rs 100 dividends per share or a whopping 5000%.

5. Muthoot Finance:

This NBFC touched a new 52-week high of Rs 1,443.25 apiece and jumped by 2% in the day so far.

In the last 12 months, Muthoot paid up to Rs 22 dividends per share. Its dividend yield is at 1.53% currently.

6. Hindustan Aeronautics (HAL):

Defence giant HAL has been among the top picks of investors for the past few days. HAL shares gained a little over 1% but it managed to hit yet another 52-week high of Rs 2,370.00 apiece. Its dividend yield is at 0.78% after adjusting bonus issues and stock splits.

So far, in 2023, HAL declared up to Rs 35 dividend per share or 350% for shareholders. In the current year, the company paid the second and third interim dividends for FY23 to the tune of Rs 20 per share and 15 per share respectively. However, for the same fiscal, the first interim dividend was paid last year to Rs 20 per share.

7. BPCL:

This oil market company is the latest to declare dividends for its shareholders. For FY24, BPCL on November 29th declared an interim dividend of Rs 21 per share having a face value of Rs 10 each. In percentage terms, the dividend payout will be 210%%. For the latest dividend, the company fixed December 12 as the record date to determine eligible shareholders.

Earlier, in August, BPCL turned ex-dividend for Rs 4 dividends per share.

Currently, BPCL has a dividend yield of 0.93%.

On NSE, the stock touched a new 52-week high of Rs 437.50 apiece, rising by over 2% in the day.

8. Power Finance Corporation:

PFC, which provides financial services to the power sector, touched a new 52-week high of Rs 333.30 apiece, in the day. The stock gained by nearly 1.6%.

In the last 12 months, PFC has declared Rs 12.50 per share cumulatively. Last week, the stock turned ex-dividend on November 24th for a payout of Rs 4.50 dividend per share which is an interim for FY24. Currently, it has a dividend yield of 3.31%.

9. Colgate-Palmolive:

FMCG major, Colgate struck yet another 52-week high of Rs 2,222.00 apiece. It zoomed by over 0.6% so far on Thursday. At the current market price, its dividend yield is at 1.96%.

In 2023, Colgate paid a whopping 4300% dividends aggregating to Rs 43 per share. The latest dividend payout was the first interim dividend of Rs 22 per share or 2200% for FY24, and the stock turned ex-dividend on November 6th.

10. HCL Tech:

Tech player, HCL clocked a new 52-week high of Rs 1,341 apiece in the early trade. Overall, the stock zoomed by over 0.5%.

HCL has declared a massive Rs 50 per share dividends in the last 12 months. Currently, its dividend yield is around 3.74%.

11. Bajaj Auto:

Bajaj Group-backed automobile flagship, Bajaj Auto has witnessed remarkable upside and crossed Rs 6,000 this week. On Thursday, the stock hit a fresh 52-week high of Rs 6,100 apiece and rallied by 0.5%.

Bajaj Auto is the other dividend king stock in the auto basket. In the last 12 months, the company paid a total dividend of whopping 1400% amounting to Rs 140 per share. At the current price level, its dividend yield is at 2.36%.

According to the Kotak Securities website, many experts say that buying shares of high dividend-yield companies is a good long-term strategy. It is valid in volatile times such as now, as stocks with high dividend yields offer a nice pay-off from your investment. They help you earn a steady income through dividend payouts. Such stocks (also called dog stocks) are considered safe and are a good option for risk-averse investors who fear a stock market crash.

Further, the brokerage's website explained that high dividends also indicate that the company's management is sharing profits with investors. Such companies often do not use much cash for expansion, thus benefiting investors. However, investors need to also look at the consistency of dividend payouts. Public sector banks and companies offer a high dividend. Similarly, foreign multinationals in the consumer and pharmaceutical space also offer a good dividend.

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.