Earn Rs-1 Lakh In Dividends Every Year -Dividend Investing

Earn Rs 1 lakh in dividends every year: 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. An important financial ratio we use when we analyze a company on a dividend basis is the dividend yield. (Earn Rs-1 lakh in dividends every year)

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Earn Rs-1 lakh in dividends every year

Earn Rs-1 lakh in dividends every year

So in today’s blog, 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. (Earn Rs-1 lakh in dividends every year)

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Earn Rs-1 lakh in dividends every year: 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. (Earn Rs-1 lakh in dividends every year)

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. (Earn Rs-1 lakh in dividends every year)

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Earn Rs-1 Lakh In Dividends Every Year

These companies will help you to earn Rs-1 lakh in dividends every year:

Vedanta Limited

Earn Rs-1 lakh in dividends every year: 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 15.67% and you have to buy around 3,125 shares in the company to earn a total dividend of 1 lakh in a year.

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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.

PROS

  • The dividend yield of the company is 15.67%
  • It is expected from the company to give good quarter
  • Company’s profit growth of last 5 years is 28.69% CAGR.
  • Company has maintained a good dividend payout of 32.57%

CONS

  • Company has a low return on equity of 13.45% for last 3 years.
  • Contingent liabilities of Rs.38066.00 Cr.
  • Promoters have pledged 99.99% of their holding.

REC limited

Earn Rs-1 lakh in dividends every year: The dividend yield of the company is 11.00% 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%.

PROS

  • Stock is trading at 0.44 times its book value
  • The dividend yield of the company is 11.00%
  • Company has maintained a good dividend payout of 34.59%

CONS

  • Company has low interest coverage ratio.
  • Company can capitalize the interest cost

Indian Oil Corporation Limited

Earn Rs-1 lakh in dividends every year: 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 9.83% ​​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.

PROS

  • Stock is trading at 0.90 times its book value
  • The dividend yield of the company is 9.83%
  • It is expected from the company to give good quarter

CONS

  • The company’s sales growth of past five years is 1.01%.
  • Company has a low return on equity of 13.53% for last 3 years.
  • Company can capitalize the interest cost

Coal India Limited

Earn Rs-1 lakh in dividends every year: Number four is Coal India Limited, this company is involved in the mining and production of coal. The company’s dividend yield is 9.32% 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.

PROS

  • Company has less debt than before.
  • Company is going to be debt free soon.
  • The company’s dividend yield is 9.32%
  • Company has a good return on equity (ROE) track record: 3 Years ROE 53.91%
  • Company has maintained a good dividend payout of 56.04%

CONS

  • The company’s sales growth of past five years is -3.05%
  • Debtor days have increased from 51.48 to 79.56 days.
  • Promoter holding has decreased over last 3 years: -4.83%

Bharat Petroleum Corporation Limited

Earn Rs-1 lakh in dividends every year: 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 13.09% 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.

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PROS

  • The dividend yield of the company is 13.09%
  • It is been expected from the company to give good quarter
  • Company has maintained a god dividend payout of 85.47%

CONS

  • The company’s sales growth of past five years is 4.15%
  • Company can capitalize the interest cost
  • Earnings include an other income of Rs.10966.06 Cr.

We remind you that this articles is for educational purposes only, and is not a buy or sell recommendation of any kind.

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