High Dividend Yield Stocks in Nifty 500

The table below shows the high dividend yield stocks in the nifty 500 based on the Highest Market Capitalization.

What are the High Dividend Yield Stocks in Nifty 500?

The Nifty 500 index includes diverse companies across sectors, and High Dividend Yield stocks are those offering significant dividends relative to their share prices. These stocks are favored by investors looking for reliable income through dividends, in addition to potential capital appreciation. Examples of such stocks may include large-cap firms with stable earnings and consistent dividend payouts, providing attractive returns for income-seeking investors.

Features Of High Dividend Yield Stocks in Nifty 500

The features of High Dividend Yield Stocks in the Nifty 500 revolve around their ability to offer consistent and substantial dividend payouts relative to their share prices, making them appealing to income-focused investors seeking regular cash returns and stability in their investments.

1. Stable Income: These stocks provide consistent dividend payments, which offer a reliable income stream. This stability is often attractive during market volatility, helping investors maintain a steady cash flow.

2. Attractive Yields: High Dividend Yield stocks typically offer higher returns on investment compared to the average market rate. This makes them a preferred choice for those prioritizing income over capital gains.

3. Strong Financials: Companies with high dividend yields often have robust financial health and cash flow. This financial stability supports their ability to sustain regular dividend payments.

4. Low Volatility: Dividend-paying stocks tend to be less volatile compared to growth stocks. Their stable income helps cushion against sharp market fluctuations, reducing overall investment risk.

5. Long-Term Growth: Investing in high dividend yield stocks can contribute to long-term portfolio growth through reinvested dividends. This compounding effect enhances overall returns over time.

Best High Dividend Yield Stocks in Nifty 500

The table below shows the best high dividend yield stocks in nifty 500 based on the highest day Volume.

Top High Dividend Yield Stocks in Nifty 500 in India

The table below shows the top high dividend yield stocks in nifty 500 in India based on 1-Year Return. 

Factors to consider when investing in High Dividend Yield Stocks in Nifty 500

The factors to consider when investing in high dividend yield stocks in the Nifty 500 include evaluating the company’s dividend sustainability and understanding its market position and growth potential.

1. Dividend Consistency: Review the company’s history of dividend payments to ensure a consistent and reliable dividend yield over time.
2. Financial Strength: Analyze the company’s financial statements, focusing on its revenue stability, profit margins, and cash flow to gauge its ability to continue paying dividends.
3. Sector Performance: Consider the performance and stability of the sector in which the company operates, as this can impact future earnings and dividend payouts.
4. Valuation Metrics: Examine the stock’s valuation ratios, such as Price-to-Earnings (P/E) and Price-to-Book (P/B), to determine if the stock is fairly valued relative to its dividend yield.
5. Growth Potential: Assess the company’s growth prospects, as a high dividend yield without growth potential may limit overall returns.

How to Invest in High Dividend Yield Stocks in Nifty 500?

To invest in High Dividend Yield Stocks in the Nifty 500, start by researching companies with strong dividend histories and stable financials. Open a trading account with a trusted broker to access these stocks. For account opening, visit Alice Blue. Once your account is set up, you can purchase stocks through your brokerage platform and monitor their performance for steady dividend income.

Advantages Of Investing In High Dividend Yield Stocks in Nifty 500

The primary advantage of investing in high dividend yield stocks in the Nifty 500 is the potential for steady income through dividends, coupled with exposure to a broader range of industries.

1. Broader Market Exposure: The Nifty 500 covers a wide array of sectors, offering diversification and reducing overall portfolio risk.
2. Stable Income: High dividend yield stocks provide a consistent income stream, making them attractive for investors seeking regular cash flow.
3. Lower Volatility: Companies paying high dividends often have stable business models, leading to less volatility compared to growth-focused stocks.
4. Potential for Capital Growth: Along with dividends, these stocks may also appreciate in value, offering dual benefits of income and capital growth.
5. Defensive Investment: High dividend yield stocks are generally seen as safer investments, especially during economic downturns, as they tend to outperform growth stocks in volatile markets.

Risks of Investing in High Dividend Yield Stocks in Nifty 500

The main risk of investing in high dividend yield stocks in the Nifty 500 is the possibility of dividend cuts during financial stress or market downturns, which can affect overall returns.

1. Dividend Sustainability: Companies may reduce or eliminate dividends during financial hardships, impacting the expected income from investments.
2. Interest Rate Sensitivity: High dividend yield stocks can become less attractive when interest rates rise, leading to potential declines in stock prices.
3. Market Volatility: Broader market fluctuations can impact the stock prices of even stable companies, leading to potential capital losses.
4. Economic and Sectoral Risks: Economic downturns or sector-specific challenges can adversely affect the earnings and dividend-paying ability of companies.
5. Inflation Risk: Dividend yields may not keep pace with inflation, eroding the real value of income received over time.

Introduction to High Dividend Yield Stocks in Nifty 500

Hindustan Zinc Ltd

The Market Cap of Hindustan Zinc Ltd is Rs. 275406.29 crores. The stock’s monthly return is -5.26%. Its one-year return is 94.84%. The stock is 30.88% away from its 52-week high.

Hindustan Zinc Limited, an India-based company, is involved in mineral exploration, extraction, processing, and the manufacturing of metals and alloys. 

The company’s product range includes zinc, lead, silver, commercial power, and alloys. Hindustan Zinc Limited operates in segments such as Zinc, Lead, Silver & others, and Wind energy. The company runs five zinc-lead mines, four zinc smelters, one lead smelter, one zinc-lead smelter, eight sulfuric acid plants, one silver refinery plant, six captive thermal power plants, and four captive solar plants in Rajasthan.  

Shriram Finance Ltd

The Market Cap of Shriram Finance Ltd is Rs. 112482.36 crores. The stock’s monthly return is 5.70%. Its one-year return is 55.89%. The stock is 5.81% away from its 52-week high.

Shriram Finance Limited, an Indian company, is a retail non-banking finance company (NBFC) specializing in financing various types of vehicles, equipment, enterprises, and personal needs. It also provides fixed deposits and recurring deposits. The company’s subsidiaries comprise Shriram Housing Finance Limited (SHFL) and Shriram Automall India Limited (SAMIL).

IDBI Bank Ltd

The Market Cap of IDBI Bank Ltd is Rs. 108330.45 crore. The stock’s monthly return is 19.84%. Its one-year return is 44.81%. The stock is 14.19% away from its 52-week high.

IDBI Bank Limited, headquartered in India, operates under various segments including Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The Treasury segment handles investments, money market operations, derivative trading, and foreign exchange operations for both the Company’s proprietary account and customers. 

The Retail Banking segment focuses on credit and deposit services targeted at individuals and small businesses, with a particular emphasis on priority sector lending. This segment also includes services such as ATMs, POS machines, Internet banking, mobile banking, credit cards, debit cards, travel/currency cards, third-party distribution, and transaction banking.  

Hero MotoCorp Ltd

The Market Cap of Hero MotoCorp Ltd is Rs. 105447.67 crore. The stock’s monthly return is -5.14%. Its one-year return is 78.54%. The stock is 13.71% away from its 52-week high.

Hero MotoCorp Limited is involved in the development, production, marketing, sales, and distribution of two-wheelers and related components. The company’s range of products includes motorcycles, scooters, and parts. Additionally, the company offers a variety of accessories like helmets, seat covers, and tank pads. Hero MotoCorp operates eight manufacturing facilities, with six located in India and one in Colombia and Bangladesh each.  

Bajaj Holdings and Investment Ltd

The Market Cap of Bajaj Holdings and Investment Ltd is Rs. 105,000.97 crore. The stock’s monthly return is -4.61%. Its one-year return is 22.23%. The stock is 10.45% away from its 52-week high.

Bajaj Holdings & Investment Limited, a company based in India, operates as a primary investment firm that focuses on pursuing new business opportunities. The company’s core strategy revolves around generating income from dividends, interest earnings, and capital gains from its investment holdings. 

Its diverse equity portfolio encompasses investments in both listed and unlisted entities, typically holding onto equities for a period of around five years or longer to capitalize on growth potential in both public and private markets. The company’s equity investments span across various sectors such as Consumer Discretionary, Consumer Staples, Financials, Industrials, Communication Services, Real Estate, and Materials/Energy.

Union Bank of India Ltd

The Market Cap of Union Bank of India Ltd is Rs.101733.12 crores. The stock’s monthly return is -1.63%. Its one-year return is 45.69%. The stock is 37.20% away from its 52-week high.

Union Bank of India Ltd. is a banking company based in India, offering various services through different segments. These segments include Treasury Operations, Corporate and Wholesale Banking, Retail Banking Operations, and Other Banking Operations.   

The Treasury Operations segment provides a variety of account options, such as savings and current accounts, term and recurring deposits, and demat and online trading accounts.   The Corporate and Wholesale Banking segment offers services like trade finance, working capital facilities, lines of credit, project financing, and channel finance.  

Canara Bank Ltd

The Market Cap of Canara Bank Ltd is Rs. 100,221.63 crore. The stock’s monthly return is -5.73%. Its one-year return is 60.14%. The stock is 22.46% away from its 52-week high.

Canara Bank Limited (the Bank) is a bank based in India that operates in various segments, including Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, Life Insurance Operations, and Other Banking Operations. 

The Bank offers a wide range of products and services, such as personal banking and corporate banking. Personal banking services include depository services, mutual funds, ancillary services, technology products, retail loan products, micro, small, and medium enterprise loan products, and card services, among others.  

Bosch Ltd

The Market Cap of Bosch Ltd is Rs.100,012.20 crores. The stock’s monthly return is -3.40%. Its one-year return is 77.81%. The stock is 13.36% away from its 52-week high.

Bosch Limited, an India-based company, provides technology and services in various sectors including mobility solutions, industrial technology, consumer goods, and energy and building technology. 

The company manufactures and markets a range of products such as fuel injection systems for diesel and gasoline engines, automotive aftermarket products, industrial equipment, power tools, security systems, and energy solutions for industrial and consumer use.  

Oil India Ltd

The Market Cap of Oil India Ltd is Rs. 98,572.43 crore. The stock’s monthly return is 23.67%. Its one-year return is 216.58%. The stock is 13.44% away from its 52-week high.

Oil India Limited is an Indian company specializing in integrated exploration and production in the upstream sector, focusing on crude oil and natural gas. The company operates across various segments, including Crude Oil, Natural Gas, LPG, Pipeline Transportation, Renewable Energy, and Others.

It manages a wide range of facilities and equipment for conducting seismic and geodetic surveys, acquiring and analyzing two-dimensional (2D) and three-dimensional (3D) data, drilling, developing and producing oil and gas fields, producing liquefied petroleum gas (LPG), and transporting products via pipeline. 

Cummins India Ltd

The Market Cap of Cummins India Ltd is Rs. 97,320.76 crore. The stock’s monthly return is -14.23%. Its one-year return is 99.68%. The stock is 19.27% away from its 52-week high.

Cummins India Limited is a company based in India that specializes in manufacturing diesel and natural gas engines for various markets such as power generation, industrial, and automotive. The company operates through distinct business units focusing on engines, power systems, and distribution.

The power systems division is responsible for designing and manufacturing engines with horsepower ratings between 700 HP and 4500 HP for applications in marine, railways, defense, mining, and power generation systems including generator sets ranging from 7.5-kilovolt amperes (kVA) to 3750 kVA.

Top High Dividend Yield Stocks in Nifty 500 – FAQs

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.