These Stocks Gave Best Dividend Yield In FY20

While on any asset one expects to gain through capital appreciation, dividend income is no less rewarding. It is because while capital appreciation has its own cost in terms of risk and volatility, with dividend there is provided certainty even though it is low. More so it is for making regular income during the course of the investment.

These Stocks Gave Best Dividend Yield In FY20

Furthermore, as in the current Covid 19 times of high uncertainty, history suggests that these dividend yielding stocks do not show high volatility. Dividend is paid by the company to its shareholders from its profit after tax. And the formula for calculating is dividend paid by the company for owing its stock divided by the current market price.

As per a recent report by HDFC Securities some of the best stocks that yielded the highest or best dividend yield during FY20 are as below:

Stock	Dividend In Fy20	CMP	Dividend Yield
NLC India Ltd.	Rs. 7.07	Rs. 47.55	14.86%
Welspun Corp	Rs. 10.5	Rs. 82	12.8%
Indiabulls Housing	Rs. 27	Rs. 220.90	12.22%
PFC	Rs. 9.5	Rs. 84.75	11.2%
Oil India	Rs. 10.6	Rs. 96.85	10.9%
REC Ltd.
	Rs. 11	Rs. 107.6	10.23%
SJVN	Rs. 2.2	Rs. 22.45	9.8%
Coal India	Rs. 12	Rs. 134.65	8.9%
HUDCO	Rs. 3.1	Rs. 35.1	8.8%
NHPC Ltd.	Rs. 1.5	Rs. 20.25	7.4%

Also, in a recent ICICI Securities report there is made a suggestion to invest in a mix of high quality defensive stocks, high or best dividend yielding stocks with well capitalized balance sheet and stable business.

It's important to remember that dividends received on or after April 1, 2020, will now be taxable in the hands of the investors. Also, while we have indicated past dividends, there is no guarantee that the above mentioned companies would declare the same dividends. For example, we remain highly skeptical on IndiaBulls Housing declaring the same dividends as last year.

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