Here is a list of stocks with the highest dividend-to-price ratio.
Investing in high dividend-paying stocks is one of the best ways to generate cash for long-term investors. The dividend yield is the ratio of dividends a company pays divided by the stock price. This ratio can help you select low-cost stocks with higher dividend yields.
IDBI Capital, a financial services provider, has listed the following stocks with the highest dividend yields in its “Quality Dividend Yield” report for December 2022.
National Mineral Development Corporation (NMDC)
The NMDC stock's dividend yield is 12.3 per cent, the highest in the list. Its latest dividend payout percentage is 46.06 per cent, which is the percentage of the company's net income in a fiscal year. The price of the NMDC stock is Rs 119.95 as of December 7, 2022. The company's profit after tax (PAT) is 30.07 per cent, and earnings per share (EPS) is Rs 21.43. The five-year return on equity (ROE) is 19.73 per cent.
Rural Electrifying Corporation Ltd. (REC)
At 12 per cent, the REC stock has the second-highest dividend yield. Its latest dividend payout stood at 30.11 per cent. The PAT margin stood at 26.23 per cent, EPS stood at Rs 38.97, and the five-year ROE stood at 17.48 per cent. The stock price is Rs 113.05 as of December 7, 2022.
Gas Authority of India Ltd. (Gail)
Gail’s dividend yield is 10.7 per cent, the third highest on the list. The dividend payout percentage stood at 36.23 per cent. The PAT margin stood at 7.95 per cent. The EPS is Rs 17.95, and the five-year average ROE stood at 13.31 per cent. The stock price of this state-run energy company is Rs 93.25 as of 7 December 2022.
Power Finance Corporation Ltd. (PFC)
It is one of India’s largest non-banking financial companies. Its dividend yield is 10.1 per cent. Its dividend payout stood at 22.61 per cent. The PAT margin was 25.03 per cent. The EPS stood at Rs 53.55, the highest in this list. The company’s five-year ROE stood at 25.67 per cent. The stock price is Rs 142 as of December 7, 2022.
Housing and Urban Development Corporation Ltd. (HUDCO)
HUDCO’s dividend yield stood at 9.3 per cent, while the dividend payout percentage was 40.81 per cent. The PAT margin was 25.30 per cent, while the five-year ROE was 12.26. The company’s EPS is Rs 8.74, while the stock price as of December 7, 2022, is Rs 52.40.
Coal India Ltd. (Coal India)
Coal India’s dividend yield stood at 9.1 per cent. It paid 60.36 per cent of its net income as dividends. The company’s PAT margin stood at 20.88 per cent, while the five-year ROE is 48.81 per cent. The EPS stood at Rs 42.40. The stock price is Rs 229.75 as of December 7, 2022.
Philips Carbon Black Ltd. (PCBL)
PCBL’s dividend yield stood at 7.1 per cent, while its latest dividend payout percentage stood at 44.31 per cent. The PAT margin was 8.18 per cent, and the company’s average five-year ROE stood at 19.36 per cent. The stock price is Rs 142 as of December 7, 2022.
Power Grid Corporation of India Ltd. (Power Grid)
Its dividend yield stood at 6.7 per cent, while its dividend payout ratio stood at 61.16 per cent, the highest in this list. The company’s PAT margin was 36.03 per cent, the five-year ROE stood at 22.99 per cent, and the EPS stood at Rs 22.31. The stock was priced at Rs 137.80 as of December 7, 2022.
Ircon International Ltd. (IRCON)
Its dividend yield stood at 6.7 per cent, and the latest dividend payout was 39.69 per cent of the company’s net income. The PAT margin for the latest quarter stood at 7.01 per cent. It gave a 10.61 per cent average ROE in five years. The stock price is Rs 64.90 as of December 7, 2022.
MOIL Ltd. (MOIL)
The mining firm’s dividend yield stood at 6.5 per cent, and the dividend payout percentage was 32.39 per cent. Its PAT margin was 26.69 per cent, while the five-year average ROE is 12.28 per cent. The EPS stood at Rs 18.92. The stock price as of December 7, 2022, was Rs 163.10.