When it comes to a dividend portfolio, long-term investors should ideally stick to large-cap companies that have a robust balance sheet, strong revenue streams and experienced management. These companies generally pay less dividends than their smaller peers but are relatively safer
However, there are some companies in the benchmark Nifty 50 index that can easily put their smaller peers to shame with their hefty dividends. On that note, here are 3 of the highest dividend-paying Nifty 50 companies. All these companies are the largest players in their respective sectors in India.
Coal India Limited
The top spot is secured by a coal miner, Coal India Ltd (NS: COAL ) which is a PSU with a market capitalization of INR 1,32,806 crores and its administration comes under the Ministry of Coal. It is the largest coal producer in the world and contributes 85% of total domestic coal production. In Q3 FY23, the company reported a 26.66% YoY jump in revenue to INR 36,840.12 crores while net income grew 70.14% YoY to INR 7,755.55 crores.
In the reported period, the company declared an interim dividend of 5.25 per share, the ex-dividend date of which was yesterday. Currently, the stock is trading at a dividend yield of 7.89%, the highest in the Nifty 50 index.
Oil and Natural Gas Corporation Limited
Oil And Natural Gas Corporation Ltd (NS: ONGC ) is another PSU with a market capitalization of INR 1,81,030 crores, making it the largest crude oil and natural gas company in India and is controlled by the Ministry of Petroleum and Natural Gas. The stock is trading at a P/E ratio of a mere 3.98 and a P/B ratio of 0.64, making it one of the cheapest Nifty 50 stocks.
The current dividend yield of the stock stands at a lucrative 7.3% and the company has maintained a decent payout ratio of 0.38 (average) for the last 3 fiscal years. The company is expected to announce its Q3 FY23 earnings report on 14 February 2023 which should be watched by dividend lovers for the upcoming payout details.
Power Grid Corporation of India Limited
Power Grid Corporation of India Ltd (NS: PGRD ) is a Maharatna PSU which is the largest electric power transmission company in India, having a market capitalization of INR 1,47,879 crores. Domestic rating agencies - CRISIL (NS: CRSL ), ICRA (NS: ICRA ) and CARE (NS: CREI ) have given a AAA rating to the company which is the highest safety rating.
The company’s Q3 FY23 performance was a decent one on a YoY basis, with a 9.69% jump in revenue to INR 11,762.25 crores while net income increased 10.7% to INR 3,645.34 crores. The stock is currently trading at a handsome dividend yield of 6.96%, the 3rd highest in Nifty 50.
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