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Highest dividend paying stocks in india in 2011

Posted on February 1, 2012 by admin| Leave a comment

If you are looking to invest some money in Indian companies, you might be looking for the best investment options. There are a large number of successful businesses in India that payout out fairly high dividends on their stocks. A good place to look for good stock investments in India is to take a peak at the highest paying stocks in India from 2011. Here are the top 10 companies in India with the highest paying stock dividends for investors.

Oil and Natural Gas Company, ONGC, is one of the highest profit-making Fortune Global 500 companies in India. Profits recently rose by 6 percent, making it ONGC the highest dividend paying stock in India. The most recent dividend was 320 percent.

Tata Consultancy Services, TCS, has also seen a large rise in profit in previous quarters. The most recent dividend announced in 2011 was 200 percent. ITC is another Indian company that has been enjoying record high profits. The most recent 2011 dividend was a 1000 percent increase from the previous payment.

Trading under the symbol IOC, the Indian Oil Company has long been known as one of the companies in India with the biggest profits. Profits have been significantly increasing each quarter. For example, in the third quarter of 2010, profits gained in a 17-fold increase. The recent dividend was a 130 percent from the previous one.

Recognized as one of the biggest companies in the world on the Forbes Global 2000 ranking in 2009, NTPC is consistently reporting net profit increases. As a result, dividend payouts are increasing with each dividend payment. The most recent payment was an 8 percent increase over the previous dividend payment.

With a large share of the two-wheeler market in India, Hero Honda is another Indian company that is paying out high dividends to its stockholders. In fact, a recent dividend payment for stockholders was an amazing 1,500 percent increase over the previous payment.

Another Fortune 500 company in India that is posting impressive profits it Reliance Industries. This company is also sharing the wealth with its stockholders by passing on the good fortune in the form of high dividend payouts. The last dividend payment was a 70 percent increase over the previous payment.

The State Bank of India, which trades under the symbol of SBI, is the biggest bank in India. Net profits have been rising each quarter and stock holders have been benefiting from this gain. The last dividend payment was a 200 percent increase over the previous dividend payout. Infosys Technologies is another Indian company

posting high dividend payments for their stockholders. The last dividend payout was a great 800 percent increase over the previous dividend.

Hindustan Unilever is another of the top 10 highest paying dividend companies in India. This company has been experiencing nice net profit increases with each quarter. Stockholders are seeing this in the form of increased dividend payments. The last dividend payment was a 300 percent increase over the previous dividend payout.
Falling markets give little room for capital appreciation. However, this doesn't imply that investors cannot benefit during such a period. They can look at investing in companies that hold promise of rewarding them through dividends. In such a case, choosing the right company, with a good track record of growth, sound financials and history of dividend payment, becomes critical. ET Intelligence Group has analysed companies and chose top 10 high dividend-yielding stocks to invest in. For this exercise, we have taken companies that have a market cap of above Rs 100 crore and shortlisted the ones having highest dividend yield along with promising growth record and sound financials. We considered the dividend paid by companies for the year ended FY10 and stock price as of January 31, 2010, to find out dividend yield. However, companies such as Hero Honda and Engineers India were excluded as they had a high dividend yield due to a one-time special dividend. Again, companies like DCM Shriram Industries, Birla Cotsyn, Birla Power Solutions and JK Lakshmi Cement were not included due to uncertainty over dividend payment in view of their poor performance for the past three quarters. Chennai Petroleum Chennai Petroleum Corporation (CPCL), a subsidiary of Indian Oil, is engaged in refining of petroleum with a dominant presence in South India. It has had a long track record of paying healthy dividends. Except for FY09, when it suffered losses due to volatile crude oil prices, the company has paid dividends since its incorporation. For FY10, its dividend stood at Rs 12 per share, which translates in yield of 5.7% at its current market price of Rs 210. In view of the decline in its profits during the first nine months of FY11, the company may not be able to maintain its dividend run-rate of the last year. However, considering its dividend payout of 33% during the past five dividend-paying years, the company is expected to pay dividend of Rs 8 per share, resulting in a yield of 3.8%. Considering the company's low valuations and improving outlook for the refining industry, the scrip could also see some capital appreciation in the coming quarters. Progress Card: CMP : Rs 210, down by 11% y-o-y Net sales : Rs 28,273 crore, up by 15.5% y-o-y Net profit: Rs 136 crore, down by 85% y-o-y Reserves and Surplus : Rs 3,313 crore Dividend Yield: 5.7% HCL Infosystems The company is mainly into distribution business of IT products and operates on lower margins of 2-3%. However, it expects to witness a margin improvement during the second half of its fiscal year ending June due to a faster growth in the higher margin businesses like systems integration. The company's telecom

distribution business continues to be a laggard since the past few quarters. However, a recent Rs 250 crore automated billing deal from BSNL takes its order backlog to Rs 4,250 crore. Though HCL has been sustaining a huge order book size since June 2010 quarter, not much has got reflected in its topline during the subsequent quarters. The company expects system integration, office automation and digital entertainment businesses to drive growth in future. In the past five fiscals, the company has been consistently maintaining a healthy dividend payout of more than 300%. Considering this, it is expected to give at least 300% dividend this year as well.
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PROGRESS CARD CMP: Rs 108, down by 20% y-o-y Net sales: Rs 11,833 crore, down by 1.9% y-o-y Net profit : Rs 253.5 crore, down by 1.8% y-o-y Reserves and Surplus : Rs 1,861 crore Dividend Yield: 7.2% Hinduja Global Hinduja Global is a solutions provider to the outsourcing industry. The company's business witnessed a turnaround during the September 2010 quarter. Its topline, which was more or less stagnant till the June 2010 quarter, surged 17% in the September 2010 quarter on account of the consolidation of its latest acquisition Careline Services. The company collects 75% of its revenue in the US dollars, 13% in pounds and the balance 12% in rupees. Its domestic revenues continue to be impacted due to pricing pressure while the rupee appreciation has adversely affected its revenues from international business. It follows a strategy of shifting facilities to low-cost centres to improve profitability. Margins are likely to improve in the coming quarters as new centres at various cities have started to ramp up and the existing centres have yielded new businesses. The management expects a robust demand momentum in the coming quarters. With new facilities becoming operational, the company is likely to fare well. One can expect the company to pay dividend at the rate of 100% of its equity. PROGRESS CARD CMP : Rs 345, down by 24% y-o-y Net sales : Rs 497 crore, up by 3.5% y-o-y Net profit: Rs 74 crore, down by 9.6% y-o-y Reserves and Surplus: Rs 593.1 crore Dividend Yield: 5.7% Kothari Products Kothari Products is a diversified trading company engaged in the import and export of various products, commodities, minerals, metals and petroleum products. It is also involved in real estate development. Kothari is a zero-debt cash-rich company paying dividends at an average rate of 100% of the equity. Its net sales for the first half of FY11 increased four fold. However, its profit during the period halved over the previous year. Considering its dividend history and reserves, the likelihood of the company maintaining its dividend rate is high. PROGRESS CARD

CMP: Rs 396, down by 6.8% y-o-y Net sales: Rs 532 crore, up by 439% y-o-y

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Net profit : Rs 54 crore, up by 91% y-o-y Reserves and Surplus : Rs 546 crore Dividend Yield: 5% LKP Finance LKP Finance is a non-banking finance company offering wide range of services from equity broking to fixed income securities, commodities and merchant banking. The company has started paying dividends from FY08. It has paid around Rs 9 crore each as dividends in the past two years at a time when most companies refrained from paying dividends. Considering LKP's good performance for the first nine months of FY11, it is likely to pay dividends for this fiscal year. The company's stock has fallen by almost 28% in the past three months. It may be a good opportunity to invest in the stock, but an advice of caution is warranted here. LKP derives its income mainly from capital market businesses. Hence, a 10% fall in benchmark indices in the past three months and the current negative sentiment could affect the company's profitability. PROGRESS CARD CMP : Rs 131, up by 11.9% y-o-y Net sales: Rs 48.5 crore Net profit: Rs 34.5 crore, against loss in previous year Reserves and Surplus: Rs 125.5 crore Dividend Yield : 5.3% Mac Charles India Bangalore-based Mac Charles India is a profitable hospitality company that pays consistent dividends. Despite the capital-intensive nature of hotels business and a small-size hotel, the company, , which is known for Le Meridian brand, has maintained a healthy net profit margin of 22.6% during the 12 months ended September 2010. In the past five fiscals, the company maintained an average pay-out ratio of over 22%. As the hotels industry regains momentum on the back of a rise in business travel, Mac Charles would benefit from its presence in Bangalore. It is expected to end the fiscal with a net profit of more than Rs 30 crore. With almost no debt to service, the company is likely to maintain its dividend rate at 100% of the equity. PROGRESS CARD CMP : Rs 212, up by 0.95% y-o-y Net sales: Rs 45.6 crore, up by 16% y-o-y Net profit: Rs 12.8 crore, up by 44% y-o-y Reserves and Surplus: Rs 191 crore Dividend Yield: 5.1%

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