Stocks To Buy For Getting Dividend Regularly All Through The Year

Though history suggests that growth companies tend to outperform dividend stocks, yet they come as a result to supplement your secondary income source as well as limit the downside risk. Also, senior citizens who think of these stocks as a good source of regular income can bet on these dividend paying stocks which are generally cash rich to up their inflow stream month on month.

Likewise, here is a list of cash rich companies or stocks that you can add in your portfolio for getting a continuous stream of dividend payments in your demat linked bank account

TCS

The Tata group IT star is a cash dividend, zero debt company with strong fundamentals. Typically, the company pays dividend 3-4 times in a year. The RoE of the stock has been a healthy over 40%. Though the stock is trading at a premium at this point, the promoters have been increasing stake in the firm, increasing strong optimism for the company. Also, the current correction has led the stock to trade at a price very close to its 52-week low.

The company also gives reward to shareholders through the buyback route which is at a considerable premium to the market price.

In the Fy22, the firm's dividend payment stream has been as though:

Effective date	Dividend type	Dividend % and amount
25-05-2022	Final dividend	2200% and Rs. 22
19-01-2022	Third interim dividend	700% and Rs. 7
14-10-2021	Second interim dividend	700% and Rs. 7
15-07-2021	First interim dividend	700% and Rs. 7

Coal India

The Maharatna entity rewards its investors through consistent dividend. Also, the fundamentals of the world's largest coal producer are strong. Going to its SWOT analysis, The company is a low PE, high RoE and high RoCE company with no debt. Furthermore, the increase in power consumption and demand as the economy revives shall augur well for the firm.

Furthermore, this PSU has been the star performer from the Nifty pack topping the charts with a YTD return of 30.47%, while last 1-month return has been at 13%.

On the top of it, a lucrative dividend yield of 8.92% is like an icing on the cake.

Effective date	Dividend type	Dividend % and amount
	Final dividend	30% and Rs. 3
21-02-2022	Second interim dividend	50% and Rs. 5
06-12-2021	First interim dividend	90% and Rs. 9

Also, the stock has been selected by ICICI Direct as its momentum pick for a short term time frame for a good return for a target price of Rs. 213.

Vedanta

Anil Agarwal led company is a global diversified natural resource company operating across segments which are Copper; Aluminium; Iron Ore; Power; Zinc, Lead and Silver; Oil and Gas, and Others. The company's capabilities are only enhancing and it is foraying into newer areas such as the futuristic semi-conductor technologies. The company is also decently valued with a TTM PE of 5.8.

Coming to its dividend it declared a dividend yield of over 15%, also for the current Fy23, with a dividend of Rs. 31.5 already declared, the dividend yield at the current price is at a high over 10%.

So, for both meaningful gains in the medium to long term as well as constant dividend, one can lap up the stock.

Effective date	Dividend type	Dividend % and amount
09-03-2022	Third interim dividend	1300% and Rs. 13
17-12-2021	Second interim dividend	1350% and Rs. 13.5
08-09-2021	First interim dividend	1850% and Rs. 18.5

BPCL

The oil marketing company is currently under pressure for two reasons primarily as the recoveries are lower. Also, the divestment plan of the company has not advanced. That said, the company from the Maharatna is trading almost near its 52-week low level of Rs. 309.2. While the stock's 52-week high is Rs. 503.

Now coming to the near term trajectory for the stock, the stock offers potential as the stock is seen to challenge the 20-day EMA for the first time in several months. So, the near term target remains at Rs. 350.

Also, the firm offers a good dividend yield of over 5%

Effective date	Dividend type	Dividend % and amount
09-03-2022	Final	60% and Rs. 6
17-12-2021	Second interim dividend	50% and Rs. 5
08-09-2021	First interim dividend	50% and Rs. 5

Bajaj Auto

This auto company i.e. a cash rich company is also a good dividend paying company. For the Fy 22, the firm declared Rs. 140 dividend per share i.e. 1400%, taking the yield to close to 4%.

Also, the recent correction in metals and a slow and gradual improvement in chip crisis together with a good risk-reward will be favourable for the auto counter.

The company is also mulling over the first buyback ever which shall be lucrative.

Many of the analysts are bullish on the 2-wheeler counter and also suggest some allocation into the auto major