Top Dividend Yield Stocks: Financial Stocks In Midcap Basket Pay Big Dividends; REC, Canara Bank, PFC In List

Financial stocks in the midcap basket are the top rewarders of dividend yields to shareholders. Government-backed REC Ltd tops the chart in highest dividend yield midcap stocks, as per Axis Securities' latest research report. Other financial stocks are Canara Bank, PFC, Union Bank of India, Nippon AUM and ICICI Securities. Oil India, Oracle Financial Services, Sanofi India, and Torrent Power are some of the other high dividend-yielding midcap stocks on the list. Dividend yields usually give clarity of returns on dividends against the investment in stocks.

Here is the list of the top 15 midcap stocks that have the highest dividend yields on their dividend payout in 12 months as per Axis Securities report:

1. REC Ltd: Leading financer for power projects, this government-backed stock has paid a total dividend of Rs 15.6 per share in 12 months. The latest would be a Rs 3 per share dividend. Currently, it has a dividend yield of 7%.

2. Oil India: In the oil and gas segment, this PSU stock has paid a dividend of Rs 19.5 per share, and the latest would be Rs 5.5 dividend per share. At present, it also has a dividend yield of 7%.

3. Oracle Financial Services: Under the IT segment, this stock has paid a dividend of Rs 225 per share in 12 months. It has a dividend yield of 6%.

4. National Aluminium Company: Another government-backed stock in the metal and mining segment, currently has a dividend yield of 6%. In the last 12 months, the company paid a total dividend of Rs 5 per share.

5. Hindustan Petroleum Corporation (HPCL): This Oil Marketing Company has a dividend yield of 5% and paid a total dividend of Rs 14 per share in the last 12 months.

Sanofi India and Power Finance Corporation (PFC) also have a dividend yield of 5% each for a payout of Rs 377 and Rs 13.25 dividend per share in the last 12 months.

Meanwhile, stocks like Indraprastha Gas, Torrent Power, Canara Bank, Nippon Life India Asset Management, and ICICI Securities have dividend yield of 4% each. Furthermore, stocks like 3M India, Union Bank of India, and NMDC have dividend yields of 3% each.

Of the total 15 stocks, six stocks belonged to financial sector, 3 stocks were under oil & gas basket, and two each belonged to IT and metals & mining segments. 1 stock each were in healtcare and utilities segments.

Among the positive factors is that high dividend yield stocks generally help investors in hedging returns amidst uncertainties like high inflation. They are less prone to suffer during market volatility. Also, they minimise the time taken for tracking stock movements on a daily basis. Eventually, they provide a reliable income stream. However, it is important to note that good quality dividend stocks can be based on their consistency in distributing dividends and growth in the percentage of dividends. There are certain risks though such as these high dividend-paying companies have a lack of reinvestment opportunities and scope for expansion among others.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.