Which Indian Companies are Offering the Highest Dividend Yield?

 

India’s stock market could grow from $3.5 trillion in 2021 to more than $5 trillion by 2024 to become the 5th largest global market, according to a report by Goldman Sachs. So, now could be a favourable time to invest in Indian stocks. 

If you are an NRI settled in the Middle East, you can send money from UAE to India for your overseas investments. Before you do that, check these Indian companies that offer the highest dividend yield, as of November 2021.

Coal India Ltd
This company is currently offering a dividend yield of 9.37%. The company’s stock has generated a year-to-date (YTD) return of 26.15%. Coal India is mainly involved in coal mining and production, and the operation of coal washeries. The main consumers of this company belong to the steel and power sectors. The other sectors include brick kilns, fertilizers, and cement. Given the rising demand for energy, with the reopening of the economy after the pandemic-induced restrictions, the prospects of this company appear bright.

Balmer Lawrie Investment Ltd 
This company is currently offering a dividend yield of 9.18%. The shares of Balmer Lawrie Investment have generated a YTD return of 3.55%. 

The company is a non-banking financial organisation that holds the equity of Balmer Lawrie & Co. Ltd.

Indian Oil Corporation Ltd (IOCL) 
Indian Oil Corporation Ltd offers a dividend yield of 8.91%. The stocks of IOCL have generated a YTD return of 47.43%.

IOCL is a Maharatna Company controlled by the Government of India. Its business is associated with the whole hydrocarbon value chain, including refining, marketing of petroleum products, pipeline transportation, marketing of petrochemicals and natural gas, exploration and production, and R&D. The company leads in the sectors of petroleum marketing and oil refining in India. 

REC Ltd 
The dividend yield of this company is currently 8.29%. REC Ltd’s stock has generated a YTD return of 13.92%. 

The company extends financial assistance across the value chain of the power sector. It is a Systematically Important Non-Banking Financial Company (NBFC) registered with the RBI as an Infrastructure Finance Company (IFC). 

Power Finance Corporation Ltd
At present, this company is offering a dividend yield of 7.30%. Power Finance Corporation Ltd’s stock has generated a YTD return of 19.25%.

This company is a Schedule-A Navratna Central Public Sector Enterprise. Like REC Ltd, it also extends financial assistance to the power sector and is a Systematically Important NBFC registered with the Reserve Bank of India as an IFC.

Hindustan Petroleum Corporation Ltd (HPCL)
Hindustan Petroleum Corporation’s current dividend yield stands at 7.07%. The company’s stock has offered a YTD return of 45.74%. 

The main business areas of HPCL include production of hydrocarbons, marketing of petroleum products, refining of crude oil and services for the management of E&P Blocks. 

PTC India Ltd
PTC India is now offering a dividend yield of 5.87%. The year-to-date returns of its stock is 115.25%. 

If you give more importance to YTD returns, you may send money from UAE to India to buy shares of PTC India. It is primarily involved in the trading of power.

NMDC Ltd
This Indian company is now offering a dividend yield of 5.45%. NMDC Ltd’s stock has generated a YTD return of 22.26%.

The company explores and produces iron ore and diamond, produces and sells sponge iron, and generates and sells wind power. 

Keep in mind the current dividend yields of companies before you send money from UAE to India to invest in the growing stock market of the country.