Top 3 Stocks That Consistently Pay High Dividends Of Upto 10%

Dividends are a key consideration when a investors invest in the share market as they offer a consistent source of return. Dividend payment is far ore dependable than a surge in capital growth in a particular year. A business with a consistent dividend policy has the potential of paying out a stable dividend in every given period irrespective of market conditions. In some cases, there could be a special dividend, which is not recuring every year, so investors need to keep that in mind.

The dividend amount that company pays will depend on the long term earnings of the company. Below are top four stocks that have been regularly paying out dividend on the basis of highest yield:

1. Power Finance Corporation Ltd

The company has been paying consistent dividend with the last dividend declared on March 2022 of Rs 12 per share. The company has an outstanding dividend track report and has regularly declared dividends for the last five years. Earlier it announced a final dividend on 25/05/2022 of 12.5% and 9/06/2022 is the ex-date of the dividend. The share price of the stock is Rs 110.90.

The 52-week high is Rs 153.75 apiece and 52-week low is Rs 104.25 apiece. The state-owned Power Finance Corporation Q4 net profit surged by 10% to Rs 4,295 crore amid higher revenues. Company's consolidated net profit in the year 2021-22 surged to Rs 18,768.21 crore from Rs 15,716.20 crore in 2020-21. The stock's P/E is 7.27 and market cap is Rs 1166 crore. The ROE is 21.2% and ROCE is 9.38%. Dividend yield is 10.8%.

2. Vedanta Ltd

The company has an excellent dividend track report. It has been regularly declaring dividend for the last 5 years without fail. Vedanta declared an equity dividend for the period ending March 31 4500% i.e. Rs 45 per share which is quite attractive. If current share price of Vedanta is taken into consideration (Rs 313 apiece), the dividend yield is 14.37%.

It announced an interim dividend on 6/04/22 at Rs 31.50. The ROE is 29.8% and ROCE is 32.3%. The market capitalization is Rs 116441 crore. The P/E is 6.10. Vedanta Q4 profit stood at Rs 5799 crore with a dip of over 9%. Meanwhile, revenue from operations surged Rs 39,342 crore with 41% gain. The 52-week high of the stock is Rs 440 apiece and 52-week low is Rs 242.50 apiece, respectively. It is a company with strong financials and brokers also upgraded recommendations.

3. Hinduja Global Solutions Ltd

The company has an attractive dividend track record and consistently declared dividends for the last 5 years. For the year ending March, it had announced an equity dividend of Rs 220 per share. If the current share price of Rs 968.75 is taken into consideration, the dividend yield comes out at 22.71%. The ROE is 124% and ROCE is 118%.

The market capitalisation stood at Rs 4048.90. The 52-week high is Rs 1960 apiece and 52-week low is Rs 807 apiece. The key positive is that it is a company with a high TTM EPS growth. Hinduja's net profit for Q4 ending March 31 zoomed to Rs 130 crore, with almost a triple growth as its net profit stood at Rs 44.8 crore in Jan-March quarter.

One of the reasons for the large dividend was sale of asset, so don't expect the dividend to be recurring.