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The margins are on a rising trend after witnessing a contraction in the same. Over the last 5 years, ITC stock has generated 42.99% returns for its investors. As of 14th March 2023, ITC stocks are showing great potential for profitability and efficiency, with 89% of analysts suggesting that investors buy this stock. With such promising figures, ITC is definitely a stock worth considering for investors. As of today, on the ‘Profitability’ score, the Infosys stock scored 7.9/10, a testimony to its growth potential.
A dividend powerhouse, Chevron has been increasing its payout to investors for 36 consecutive years. That’s no guarantee that it will continue to do so for the next 36 years, but it’s a strong indication that rewarding shareholders is a part of the company culture. Possessing a $45 billion market capitalization, Constellation Brands is among the largest alcoholic beverage companies in the world. The alcoholic beverage company features a lineup high dividend blue chip stocks in india of popular products, including Corona Extra and Modelo Especial beers, and Kim Crawford and Robert Mondavi wines. Thanks to these products, Constellation Brands earns the distinction of being the third-largest beer company in the U.S. and the top share gainer across the U.S. beer market. For instance, if a listed company with a share price of Rs 100 pays a dividend of Rs 5 per share, then the dividend yield of the stock is 5 percent.
Factors To Consider Before Investing In Dividend-paying Stocks
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Since its inception in 1981, Infosys Ltd has grown from strength to strength as a global IT services and consulting company. Today, it stands as a multi-billion dollar enterprise and is regarded as one of the top IT firms, trailing just after TCS in terms of revenue.
In this article, we present a curated list of India’s top dividend-paying blue chip stocks with excellent long-term returns. This list highlights the best companies that offer both attractive dividends and a track record of high performance over a 5-year period. We also explore the criteria for identifying top dividend-paying stocks in India and offer key considerations for investing in high dividend-yield stocks. Whether you are a seasoned investor or just beginning, this article provides valuable insights into the untapped potential of these stocks and how to capitalise on lucrative investment opportunities.
These Blue Chip stocks are typically considered to be less risky than other stocks and offer investors a higher degree of stability and dividend income. HDFC Bank is one of the largest private sector banks in India and is known for its strong financial performance and stable earnings growth. NextEra’s share price has appreciated by triple-digit percentages over the past 10 years, among the best results of any utility company. The company is a growing producer of energy — much of it generated by renewable sources — that it sells and transfers to utility companies in other markets. The steady demand for electricity that underpins its business, combined with growth in demand for renewable energy, gives NextEra a premium valuation and blue chip status.
Mutual funds weekly report 27-06-2020
But like many other ‘boring’ blue-chip dividend-paying stocks, Kimberly-Clark is really good at what it does. Indeed, MSFT stock has been among the biggest beneficiaries of the AI boom. AI adoption has catalyzed its massive resurgence this year, promising revenue growth at an unprecendented rate, which is reason enough to believe that MSFT stock could eclipse its previous highs easily.
Consider the stock’s dividend yield and whether it aligns with your investment goals. A blue-chip stock is the share of a well-established company that has consistent growth in revenue and profitability ranging over decades if not years. What’s more, the top blue chip stocks in India are known to be relatively stable across market conditions. So, buckle up as we navigate the specifics of three blue-chip dividend stocks. Each offers a unique combination of stability, growth prospects, and robust dividend yield.
These industry-leading companies offer compelling values for patient investors.
Asian Paints enjoys a dominant share of over 50% in the organized domestic paints market. In the decorative paints segment, which comprises about 70-75% of the Indian paints industry; Asian Paints have a share of about 60%. It has also been able to garner a healthy position in the automotive industrial coatings segment with a market share of about 20%. Driven by its leadership position, the company has registered revenue at a CAGR of 14% and a profit CAGR of 13% over the five fiscals through 2022. Strong brand equity, extensive distribution network, and wide product portfolio have enabled it to maintain a strong market position. Due to the company’s leadership position, it enjoys a healthy operating margin of over 17.2% which is higher than peers.
Debt to equity has always been negligible and currently stands at 0.13 times. In this article, we will be looking at the 10 best safe blue chip dividend stocks. If you want to skip our detailed analysis of blue chips stocks and dividend investing, you can go directly to the 5 Best Safe Blue Chip Dividend Stocks. Asian Paints is one of India’s best blue chip stocks regarding its market performance. The company has a solid financial performance, with consistently high profits and dividends. Another one of the top high dividend blue chip stocks in India is the National Thermal Power Corporation Limited (NTPC).
Why should you Buy Blue Chip Stocks?
Dividends coming in the category of ordinary dividends are the ones received by keeping stock for less than 61 days. Hello, I am Raj an investor in Stock Market, Mutual Funds, Gold, PPF, FD instruments since 2005. I have a passion for helping others make sound and profitable investment decisions. You can’t go wrong with stocks that offer something everything on the planet needs to survive.
From the latest updates on the stock market to insider tips on mutual funds and gold investments, I have you covered. By considering the company’s financial health, market position, dividend history, valuation, and expert analysis, you can make an informed decision and build a strong and diversified portfolio. Management’s target is to return half of the previous year’s free cash flow to shareholders via its dividend, which has equated to fantastic income increases for owners of this tech stock.
Currently, investors can power their portfolios with Chevron on the cheap. Shares are trading hands at 6.1 times operating cash flow, representing a discount to their five-year average ratio of 9.3. The shares mentioned above in the list of top blue chip stocks are examples, not recommendations. ICICI Bank is the second-largest bank in terms of market capitalization after HDFC Bank.
- For setting up independent power production plants, PTC also offers advisory services.
- These Blue Chip stocks are typically considered to be less risky than other stocks and offer investors a higher degree of stability and dividend income.
- In this article, we present a curated list of India’s top dividend-paying blue chip stocks with excellent long-term returns.
- Nike’s dividend yield is currently low compared to other companies, but it has a long history of annual payout increases.
- Instead of buying a Dow index fund, a far better approach is to scan the Dow’s 30 components for quality buys.
- We also took care to ensure each stock added to the list had increased its dividend yield for at least the past 20 years or more, as a metric to determine the stability of the stock’s dividend.
Also, post the budget last year, the dividends are now taxed in the hands of the investors. For individuals, dividends will be taxed as per the applicable slab rate. For corporate shareholders, dividends will be taxed based on their effective tax rates. Sustained market share and consistent profitability over the years, notwithstanding the increase in duties, reflect the strong brand loyalty of cigarette smokers.
It’s one thing to make sustainability targets; it’s another to reduce emissions while also driving profits. Meanwhile, Chevron (CVX 1.85%) and chemical company Dow Inc. (DOW 0.28%) have mostly missed out on the 2023 stock market rally. Plus both companies are making some compelling investments that could drive growth and support dividend payments for years to come. Companies that pay out dividends on a regular basis are referred to as dividend-paying stock.
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It is a subsidiary of Tata Group, one of India’s largest conglomerate companies. TCS was founded in 1968 and has grown to become one of the largest IT services companies in the world, with over 600,000 employees in 46 countries. A blue-chip stock is a stock that is issued by a well-established and financially sound company. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. An in-depth look at up-and-coming company stocks in the U.S stock market this year.
But there’s arguably a mismatch here, because Qualcomm’s snapdragon chips are AI-enabled and have strong potential beyond the hand phone market. The company is angling hard to sell into the Internet-of-Things markets and AI-automotive applications. The modus operandi observed is that once a client pays amount to them, huge profits are shown in his account online inducing more investment. However, they stop responding when client demands return of amount invested and profit earned.
The company is into the exploration, retailing, and production of petrol and related products. The company has shown a robust financial track record and has played a key role in revolutionizing the IT industry. HDFC Bank is one of the leading private sector banks in the country known for its brand value and services. It offers a wide array of services ranging from transactional to commercial banking, banking, and treasury services to retail and wholesale customers. These are household names across the country and the company has established its stronghold and market share with the help of well-known brands. Reliance Industries is the largest conglomerate in India by market capitalization with a diversified portfolio of businesses in Petrochemicals, Retail, Refining, and Communication.
Founded in 1968, TCS has a global presence as it offers IT consulting and IT-enabled services across Asia, North America, and more. Pfizer Limited is a subsidiary of the world’s premier pharmaceutical corporation, Pfizer Inc. The company is engaged in the manufacturing, marketing, trading, and export of pharma products. More importantly, the company enjoys a significant edge over its competitors, given that the business operation of the company demands massive capital requirements and limited zinc ore mines. For instance, a company, for a specified period, may declare a dividend of Rs 10 per share.
Shares of HDFC gained 44.43% in the last 5 years compared to Nifty Bank’s growth of 65.34%. The stock has a dividend yield of 1.66%, a P/B ratio of 2.42, and a P/E ratio of 19.00. Infy stock has gained 104.65% in the last 5 years compared to Nifty IT which grew by 106.13%. The stock has an average P/B ratio of 8.20 and a P/E ratio of 22.00 but does give a dividend yield of 2.63%.
Apart from the characteristics discussed above, an investor must keep a few key financial characteristics of blue chip companies in mind before investing. Most Blue Chip companies in India have market capitalization greater than Rs. 50,000 Crs. These companies have a track record of consistently increasing their topline and operating margins on an upward trajectory. They are generally debt free companies, however, a low and stable debt to equity ratio may also be considered as a significant characteristic. Blue Chip companies are known for rewarding their loyal shareholders with consistent and increasing dividends. Also, these companies should have a high return ratio (both return on equity and return on capital employed), high interest coverage ratio, ability to consistently generate cash flows, etc.
