Indian Dividend Stocks: Why it’s Safe Investing in High Dividend Yield Stocks?

Investing in Indian Stocks Market involves lots of risks because of the volatility of the Indian stock market itself. Many stock market analysts believe that investing in high dividend yield giving stocks in India is a safe bet.  Often investors find it really hard to get returns on their investment during the tough times of Indian stock market say when market goes bit flat or worsen when it goes bearish. Through dividend investing approach only one can get returns.  In Dividend Investing as an stocks market investor in India, you just focus on picking companies who have strong market fundamentals like market cap, earnings per share and growth over a long horizon.

Many Experts believe that investing in dividend paying stocks is a safe bet because only those companies distribute dividends to investors who are pretty much confident about their future profit /earnings and have strong cash flow. Capital appreciation in high dividend yield giving stocks is less though, but in this investors are assured of steady income flow in form of regular dividend cheques.

Ideally, mature companies with strong cash flow and limited growth opportunities tend to distribute dividends to their shareholders and it is so because every company give dividends out of their net profit while high growth firms requires lots of capital to growth further.

In  Indian Stock Market, there are blue chip stocks like ONGC, Tata Steel, Punjab National Bank, BHEL, Coal India, Gail (India), NTPC, Hero MotoCorp, Bajaj Auto and Bank of Baroda which are paying good dividends to investors.

There are two clear benefits of dividend paying stocks for investors in India. First one is that they generate short term income in form of dividends. Secondly they can also give you capital appreciation if you keep them for long. Due to high inflation rate prevailing in India, other income generating investors give poor returns. Dividend stocks have clear advantage over other income generating options.

Here I am giving you some of the Best Dividend Paying stocks from Indian Stock Market

1.       India Bulls : Dividend (%) =150

2.       Manappuram Fin: Dividend (%) : 90

3.       Aandhra Bank: Dividend (%) : 50.00

4.       Hinduja Ventures: Dividend (%) : 150.00

5.       Cairn India: Dividend (%) : 115.00

Get Dividend Data like dividend dates, new dividend announcements, dividend yields, dividend history, 52 week High/low data, dividend payout changes, dividend policies, ex-dividend dates, etc. for all the Indian dividend paying stocks by in.dividendinvestor.com. Know which are the best dividend paying stocks and high dividends giving stocks best to buy in Indian stock market. Track your favorite Indian dividend paying stocks through tracker tool and screen desired high yield stocks through screener tool. Get email alert for any new dividend announcements by our ealert tool.

Related Tags: Indian dividend stocks - Indian stocks with dividends - Best Dividend Stocks in India