Hi, Often retail investors like us while investing in any company check whether the company is paying dividends on regular basis or not.
If a company is consistently paying dividends to its shareholders, it is a huge positive factor for the company and reflects its stability.
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An important financial ratio we use when we analyze a company on a dividend basis is the dividend yield.
So in today's video, we will talk about the top 5 companies whose yield dividend is the highest.
After that, we will tell you that approximately how many shares will be bought in all companies to earn 1 lakh rupees every year as a dividend.
To calculate the total number of shares we multiply their dividend yield by the share price we get the value of dividend per share.
With the help of dividend per share, we have calculated that how many shares you have to buy in companies to earn a dividend of Rs 1 lakh.
We have considered the prices after the market closed on December 27 to calculate the total number of shares.
Since then, you can see a slight variation in the numbers in the middle of the time when you are watching the video.
In this list, we will talk about only those companies whose market cap is more than 5000 crores.
We will tell you at the end about the company which has the highest dividend yield.
So let's start today's list.
The first company is Vedanta Limited.
This company is involved in the exploration, extraction, and processing of minerals and oil and gas.
The dividend yield of the company is 9.40% and you have to buy around 3,125 shares in the company to earn a total dividend of 1 lakh in a year.
The PE Ratio of the company is 6.62 and the Debt to Equity Ratio is 0.80.
In terms of profitability, the company has a Return on equity of 20.42%, and a Net profit margin of 17.68%.
The share price of the company has increased by 108.26% in the last year.
In the last 5 years, the company has given an annual return of 9.42%.
Secondly, REC Limited is a non-banking finance company that provides financial assistance across the value chain of the power sector.
The dividend yield of the company is 9.66% and you have to buy around 7,866 shares in the company to earn a total dividend of 1 lakh in a year.
The PE Ratio of the company is 2.80 and the Debt to Equity Ratio is 7.07.
In terms of profitability, the company has a Return on equity of 21.33%, and a Net profit margin of 23.57%.
The company's share price has gone down by 2.88% in the last year.
In the last 5 years, the company has given an annual return of 1.40%.
The third company is Indian Oil Corporation Limited.
This company is a leading company in the field of oil refining and petroleum marketing in India.
The dividend yield of the company is 10.84% ​​and you have to buy around 8,329 shares to earn a total dividend of 1 lakh in a year in the company.
The PE Ratio of the company is 4.06 and the Debt to Equity Ratio is 0.85.
In terms of profitability, the company has a Return on equity of 20.88%, and a Net profit margin of 5.98%.
The company's share price has increased by 20.77% in the last year.
The company's stock has gone down by 7.26% in the last 5 years.
Number four is Coal India Limited, this company is involved in the mining and production of coal.
The company's dividend yield 1is 0.96% and you have to buy around 6,247 shares to earn a total dividend of 1 lakh in a year in the company.
The PE Ratio of the company is 6.53 and the Debt to Equity Ratio is 0.08.
In terms of profitability, the company has a Return on equity of 36.99%, and a Net profit margin of 14.11%.
The company's share price has increased by 6.10% in the last year.
The company's stock has gone down by 13.33% in the last 5 years.
The fifth company is Bharat Petroleum Corporation Limited.
It is a public sector company involved in the refining of crude oil and marketing petroleum products.
The dividend yield of the company is 11.75% and you have to buy around 2,273 shares in the company to earn a total dividend of 1 lakh in a year.
The PE Ratio of the company is 6.59 and the Debt to Equity Ratio is 1 .20.
In terms of profitability, the company has a Return on equity of 27.85%, and a Net profit margin of 5.88%.
The company's share price has gone down by 2.18% in the last year.
The company's stock has gone down by 2.57% in the last 5 years.
So these are the 5 companies whose dividend yield is the highest.
Apart from this, we also saw how many shares you have to buy in companies to earn a dividend of Rs 1 lakh.
We remind you that this video is for educational purposes only, and is not a buy or sell recommendation of any kind.
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