How to Find High Dividend-Paying Shares? Unveiling One

  • Stock Market Analysis
  • Editors Pick

In the expansive world of stock market investing, finding high-quality dividend stocks among over 2,000 options can be daunting. This is where the "I Dream of Dividends" screener becomes invaluable. Among the stocks identified by this powerful tool, Coal India Limited stands out.

Coal India Limited

Coal India Ltd (NS: COAL ), the largest coal producer globally, boasts a market capitalization of INR 3,08,752 crore. Over the past year, the stock has delivered an impressive 112.9% return, yet it remains attractively priced with a single-digit TTM P/E ratio of 9.19. Its strong financial health score of 4 out of 5 highlights the company's robust fundamentals.

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Profitability is crucial for any dividend-paying company, and Coal India's net income of INR 37,402.29 crore in FY24, the highest in its history, underscores its financial strength. Moreover, ProTips indicates that Coal India has consistently paid dividends for over 14 years, further cementing its reputation as a cash-rich company with more cash on hand than debt.

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Currently, Coal India offers a dividend yield of 4.96%, the highest among all Nifty 50 stocks. Finding a blue-chip company with such an impressive yield is rare. InvestingPro+ provides a comprehensive view of Coal India’s dividend payout history through easy-to-read histogram charts, which visualize the payout trend and assist in making informed investment decisions. For example, these charts reveal that Coal India has maintained an average payout of around INR 18.5 per share over the past decade, indicating stability in its dividend payments—a crucial factor for any dividend stock.

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The dividend yield chart is another powerful tool that considers both the share price and dividend per share (DPS), plotting the yield trend over time. This helps investors gauge yield trends and compare them with historical data, significantly improving the timing of investment entries. For instance, the yield line for Coal India has flattened out since February 2024, suggesting that yields are no longer dropping. This could signal a potential reversal, indicating that either the stock price has stabilized or the DPS is steady—both positive signs for a dividend stock.

With its robust algorithms and user-friendly interface, the "I Dream of Dividends" screener empowers investors to efficiently sift through a vast array of stocks, saving valuable time while maximizing returns. Whether you're a seasoned investor or a novice, this powerful tool streamlines the process, allowing you to focus on what truly matters—building a high-quality dividend portfolio.

Say goodbye to tedious manual searches and hello to a smarter, more efficient way to invest with InvestingPro+ by Clicking here, now available at a discount of 69%, for INR 526/month.

X (formerly, Twitter) - Aayush Khanna

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  • P C Chowdhury @P C Chowdhury
    P.C.ChowdhuryHow does Coal India compare with IRB InvIT, which you had singled out earlier (A Lesser-Known ‘Dividend Machine’ with 14% Yield!)Aayush Khanna  22 Nov 2022
    Like 0
    • V R Kotha @V R Kotha
      @P C Chowdhury IRB is a debt oriented while Coal India is an Equity investment. Chances of Loss of investments is very High in Coal India compared to IRB.
      Like 0
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  • Ravi Chandran @Ravi Chandran
    Good read
    Like 0
  • DILIP PATEL @DILIP PATEL
    very good knowing
    Like 1

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