List of companies in India with good dividend history

 A dividend is the portion of a company’s profits that is distributed to its shareholders as cash. It’s a way for companies to share profits with owners, with the shareholders getting a fixed amount per share as determined by the company.

The amount of money one is getting through dividend relative to one's investment is the Dividend yield, which is represented by:

Dividend yield=Dividend per share (DPS) ÷ current share price × 100%

Hence, the Dividend yield fluctuates as the current price of the share changes.

Investing in high dividend yield companies ensures a stable yearly cash flow. But, it should be noted that such companies generally have limited growth as the profits are distributed as dividend. While companies with low dividend yield tend to focus on growth and reinvest the profit into their companies. So, they have higher chances of long-term wealth creation.

Given below is a list of quality companies with good dividend history

Sl NO	Name	Sector
1	IOC	Refineries
2	BPCL	Refineries
3	HPCL	Refineries
4	ONGC	Oil exploration/production
5	Petronet LNG	Oil exploration/production
6	Oil India	Oil exploration/production
7	REC	NBFC
8	PFC	NBFC
9	Coal India	Coal
10	GAIL	Gas distribution
11	MGL	Gas distribution
12	IGL	Gas distribution
13	NALCO	Aluminium
14	NTPC	Powergeneration/Distribution
15	NHPC	Powergeneration/Distribution
16	Powergrid	Powergeneration/Distribution
17	CESC	Powergeneration/Distribution
18	ITC	Diversified
19	VST	Cigarettes/Tobacco
20	Acelya	Software
21	Gulf Oil	Lubricants
22	Castrol	Lubricants
23	NMDC	Iron/Steel
24	Balmer Lawrie	Diversified
25	Gujrat Pipavav	Ports
26	GNFC	Fertilizers
27	GSFC	Fertilizers
28	Hind Zinc	Metals
29	Vedanta	Metals

 

Timing the market becomes more important with dividend stocks and the best time is when the concerned sector is out of favor or the prices have corrected significantly. In such cases, the dividend yield of the companies gets attractive. Conversely, a bad time to invest in such a company would be just after a big dividend announcement rally with higher changes of falling in price trap.