2 Best Dividend Stocks To Add To Your Portfolio

Dividend is a reward or cash that a company gives to its shareholders. Companies issue dividends in various forms like cash, stock, or any other form that the company may feel appropriate. Dividend Stocks Belong to those companies that consistently pay out regular dividends to their shareholders.

These are basically companies that have effectively established themselves in their respective fields with an outstanding track record of distributing the earnings back to their shareholders. Below are three dividend stocks that you may consider adding to your portfolio to receive regular income:

1. GAIL Limited

State-run GAIL Ltd seeks to boost spending on clean energy business and petrochemicals. Presently, it is engaged in investing in pipelines throughout India. It is planning to establish petrochemical plant near Alibag. In the coming 3 years, it is total capex is likely to stay around Rs 30,000 crore on account of pipeline and petchem including other operational capex.

It has declared its Q4 results ending March 31 on May 27, 2022 with standalone profit jumping to Rs 2,683.11 crore, a surge of 40.6% while the revenue from operations spiked 73% YoY to Rs 26,968.21 crore in FY 2022. The company is almost debt free and likely to give a good quarter.

Market capitalization: The market capitalization is Rs 61,721 crore.

ROE and ROCE: The return on equity is 20.9% while the return on capital employed is 23.3%. The PE is 5.03 and EPS is 27.60.

Dividend yield: The dividend yield is quite attractive at 7.16 if the current market price of the stock at 139.75 is considered. The company has a good dividend track record as it has regularly declared dividends in the last 5 years. Earlier this year in March, the company declared an equity dividend of 100% i.e. Rs 10/share.

2. Hindustan Zinc Ltd

Hindustan Zinc is India's largest and world's second largest zinc-lead miner. With more than 50 years of operational experience. Hindustan Zinc is a subsidiary of Vedanta Limited. The Vedanta Group company declared an 18% surge in its Q4 net profit ending March 31 at Rs 2928 crore on account of higher volumes and metal prices.

Its net profit also jumped 20% for FY2022 at Rs 9,629 crore. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for FY2022 surged 38% to Rs 16,289 crore. Its key strength is its high revenue and strong profit growth with high return on capital. It emphasizes to generate more and more top-class value-added zinc alloy products using latest technology and equipment. It is also committed to decarbonize its mining operations. The company is almost debt free.

Market capitalization: The market capitalization is Rs 114,928 crore.

ROE and ROCE: The return on equity is 29.2% and return on capital employed is 37.8%. The PE 11.94% and EPS is 22.79%.

Dividend yield: It has a good dividend track record and declared dividend in the last 5 years. It has declared a dividend of Rs 18 per share earlier this year on March 31, 2022. According to the current market price of Rs 273.60, the dividend yield is 6.58%.

Disclaimer

Investors are advised caution as the markets have become exceedingly volatile. Neither Greynium Information Technologies, nor the author, would be responsible for any losses based on a decision reading the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets.