How to Generate High Dividend Returns from Investments?

This is a very tricky question without the mention of the horizon for which the money will be invested to get the returns

Dividends: Outcome from Stock Investments

So, let us answer this one by one

  • Money to be invested for getting regular dividends
  • Dividends (Quantum Example: INR 12L/yr)
  • Stocks to buy

Money to be invested

  1. Cash Generating companies with Number Uno Position in their space are regular dividend payers
  2. Companies in this category are Government Organizations, FMCG, Energy Companies, etc.
  3. Companies having ROE(Return on Equity) > 15% & P/E less than 20
  4. EPS > 25
Equity ROI: Return On Investment from Stocks

Dividends for 12L/Yr

  1. Let’s take IOCL for example. Its dividend yield stands at ~INR 10–20
  2. Dividend Yield(DY) %
    1. Stock Price(at Book Value)/(Average Dividends)
    2. Price/Book Value = 0.93 (Book Value = INR 120)
    3. Dividend(Average) = INR 15
    4. DY% = (15/120)*100 = 12.5%
  3. For INR 12L/yr dividend
    1. Investment = (Dividend)/(DY%) = INR 96 Lacs (Estimated)
Dividends as a Source of Regular Income

Stocks to Buy

  1. BPCL (Bharat Petroleum)
  2. IOCL (Indian Oil)
  3. PTC (Power Trading Corporation of India Limited)
  4. REC (Rural Electrification Corporation Limited)
  5. HUL (Hindustan Unilever Limited)
  6. PFC (Power Finance Corporation Ltd)
  7. Coal India
  8. Indus Tower
  9. HPCL India (Hindustan Petroleum Corporation Limited)
  10. Satluj Jal Vidyut Nigam (SJVN)
  11. Calcutta Electric Supply Corporation (CESC)

Hope this helps. Happy Investing!!

High Dividend Paying Stocks in India

References:

  1. IOC Share Price, IOC Stock Price, Indian Oil Corporation Ltd. Stock Price, Share Price, Live BSE/NSE, Indian Oil Corporation Ltd. Bids Offers. Buy/Sell Indian Oil Corporation Ltd. news & tips, & F&O Quotes, NSE/BSE Forecast News and Live Quotes
  2. Top Dividend Yield Stocks/Shares BSE , Top High Dividend Shares/Stocks, Top Dividend Paying In BSE
  3. Best Dividend Stocks to Buy in India
  4. Highest Dividend Yield Shares
  5. Invest in High Dividend Paying Stocks in India

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