Top 5 Stocks of Nifty 50 with High Dividend Yield

Investing in dividend-paying stocks is one of the popular investment strategies among investors who wish to have an additional source of steady income. This strategy is good because it helps in two ways: one through dividends and the other through capital appreciation of share prices. This approach is particularly suitable for investors who are retired.

In the context of Indian stock markets, there are many listed companies that provide consistent dividends. In this article, we will look into the top 5 companies in Nifty 50 that provide high dividend yields. Before going to the list, let’s first get an understanding of dividend yield.

What is dividend yield?

Dividend yield is the ratio of dividends paid per share to the close price of a share. It is used to compare which company provides high dividends with respect to share price. 

Suppose a company ABC with a share price of Rs. 500 provides a dividend per share of Rs. 25. Then the dividend yield, as explained above, is 5%. There is another stock XYZ which closed at Rs. 400 and provides a dividend per share of Rs. 40. This company’s dividend yield is 10%. 

XYZ is said to have a higher dividend yield than ABC. The higher the dividend yield, the better it is for the investors. 

Here are the highest dividend yield stocks as of July 3, 2024:

Check: Dividend Stocks

It is important for a novice investor or an experienced investor to understand the benefits of investing in the best-highest dividend stocks, as it can help provide income even during market downturns.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions