Find the best dividend drivers for your investment portfolio

Investments are all about growing your wealth, and many retail investors prefer to grow their wealth through growth stocks. If you follow the stock market, you will come across several companies that pay heavy dividends. These stocks grow exponentially, and the price change helps in overall material growth of wealth.

What are high-paying dividend stocks?

If you are looking for stocks to buy today, you should consider investing in stocks that are paying high dividends. High-dividend results in the stock having high-growth potential, and the price for the same tends to increase with time as well. In the longer run, you are meant to make capital gains on these stocks as well as have an annual income in the form of dividends. That’s what makes these the best kind of stocks to invest in.

An insight into the top dividend-paying stocks in India

There are many companies, which have been paying high dividend in the last few financial years. Some of these include stocks of – Majesco, Clariant Chemicals, BPCL, Goodyear, Cheviot Company, Polyplex Corporation, etc.

Although there is no certainty that these stocks are meant to grow unilaterally since the prices are subject to market risk, you can consider these stocks as their historical evidence has led them to be in the list of the top dividend-paying stocks in India 2021.

Why should you consider investing in dividend drivers?

There are many reasons why retail investors prefer scanning through the top 50 dividend-paying stocks list to add them to their investment portfolio.

  • Apart from adding value to the portfolio, these stocks have a great potential to grow, and this leads to long-term capital gains.
  • If you face a financial crunch, you can sacrifice a part of your portfolio and still be materially affluent.

How will you find these stocks?

There are certain tips that seasoned investors employ to get the best dividend drivers for their investment portfolios.

  • The debt-to-equity ratio of these companies should be close to 1 for better growth of the company.
  • You should look at the trend in the dividend pay-out ratio over the years. The historical data will help you to understand the dividend-paying capacity of the company.
  • There should be some amount of retained earnings in the company statements, which the company uses for development and innovation.
  • The directors and the stakeholders of the company should have a vision, which will help you decide whether you want the buy stocks of that company.

The bottom line

Depending on what your financial goals and risk appetite are, you can consider investing a proportion of your funds in high dividend paying stocks. You can also consult a financial advisor to come up with a comprehensive investing strategy for wealth creation.

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