Top 10 Sensex Stocks To Bet On With Highest Dividend And Low Risk

The stocks with the highest dividend yield are reflective of the dividend income that these scrips generate for their shareholders. The ratio suggests how much a company pays out in dividends annually relative to its share price and is calculated using the formula

Dividend Yield = Annual dividend per share/ Price per share

Top 10 Sensex Stocks To Bet On With Highest Dividend And Low Risk

Now below is given the list of top 10 Sensex stocks with highest dividend yield, lowest price to earnings ratio (P/E) and lowest price. Notably all these parameters are in comparison to other Sensex stocks.

Lowest price and P/E denote cheap valuations of these companies and also hint at the low risk that these companies carry relative to other Sensex stocks:

Company	Dividend Per Share (Rs)	Closing Price	Dividend Yield in %	P/E
ONGC	5	64.95	7.7	6.08
Power Grid Corporation of India	10	171	5.85	8.27
ITC	10.15	165.25	6.14	13.43
NTPC	3.15	87.6	3.6	8.57
Bajaj Auto	120	2886.45	4.16	16.38
TCS	73	2664.85	2.74	30.06
Tata Steel	10	410.35	2.44	6.85
Tech Mahindra	15	813.7	1.84	17.35
Larsen & Toubro	14	929.6	1.51	19.54
Infosys	17.5	1060.6	1.65	29.06

Pros of investing in dividend paying stocks

1. Dividend yielding stocks guarantee a steady income stream and help in building wealth over a period of time.

2. Such stocks carry low risk that non-dividend yielding stocks.

3. The company's pay-out of dividend is testimony to its belief in future earnings potential as well as business sustainability.

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