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Dividends are part of a company’s earnings which are paid to shareholders. Generally, dividends are paid quarterly, semi-annually or annually. If dividends are paid before the end of a financial year, it is called interim dividend. If dividends are paid for a current financial year, say FY21, after the financial year, then it is called final dividends.
Companies pay dividends to make their stocks attractive for investors to hold and also share the profit with eligible shareholders. It also send a message to investor community about the financial strength of the company. If a company is able to pay dividends consistently year after year, then the mangement is confident and positive about future earnings and sales growth.
We have listed the top 20 companies in Nifty 500 with high dividend yield in the last two years. Dividend yield is the ratio of annual dividend per share to price per equity share.
| Stock | Dividend yield 1-year in % | Dividend yield 2-year in % |
| Coal India Ltd. | 11.1 | 9.7 |
| Indian Oil Corp | 10.9 | 7.4 |
| Polyplex Corp | 9.8 | 6.5 |
| Power Finance Corp | 9.5 | 8.4 |
| SJVN Ltd. | 8.6 | 8.7 |
| REC Ltd. | 8.5 | 7.9 |
| Hindustan Petroleum | 8.5 | 6.1 |
| Indus Towers Ltd. | 8.2 | 6.2 |
| Rail Vikas Nigam Ltd. | 8.2 | 4.2 |
| Cochin Shipyard Ltd. | 7.8 | 4.1 |
| Housing And Urban Development Corp | 7.1 | 4.6 |
| Hindustan Zinc Ltd. | 6.6 | 5.9 |
| Castrol India Ltd. | 6.0 | 5.2 |
| NHPC Ltd. | 5.7 | 6.4 |
| Balmer Lawrie & Company | 5.7 | 5.6 |
| Rashtriya Chemicals & Fertilizers | 5.5 | 3.3 |
| CESC Ltd. | 5.5 | 4.0 |
| ITC Ltd. | 5.1 | 5.0 |
| NMDC Ltd. | 5.1 | 4.3 |
| Petronet LNG Ltd. | 5.1 | 5.3 |
| Gujarat Pipavav Port | 4.4 | 5.0 |
| Welspun Corp Ltd. | 4.3 | 6.7 |
| Engineers India Ltd. | 4.1 | 5.0 |
| Rites Ltd. | 4.0 | 5.0 |
Source: Trendlyne
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