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How to Find High Dividend-Paying Shares? Unveiling One

Published 05/28/2024, 10:21 AM
Updated 06/07/2024, 06:57 AM

In the expansive world of stock market investing, finding high-quality dividend stocks among over 2,000 options can be daunting. This is where the "I Dream of Dividends" screener becomes invaluable. Among the stocks identified by this powerful tool, Coal India Limited stands out.

Coal India Limited

Coal India Ltd (NS:COAL), the largest coal producer globally, boasts a market capitalization of INR 3,08,752 crore. Over the past year, the stock has delivered an impressive 112.9% return, yet it remains attractively priced with a single-digit TTM P/E ratio of 9.19. Its strong financial health score of 4 out of 5 highlights the company's robust fundamentals.

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Profitability is crucial for any dividend-paying company, and Coal India's net income of INR 37,402.29 crore in FY24, the highest in its history, underscores its financial strength. Moreover, ProTips indicates that Coal India has consistently paid dividends for over 14 years, further cementing its reputation as a cash-rich company with more cash on hand than debt.

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Currently, Coal India offers a dividend yield of 4.96%, the highest among all Nifty 50 stocks. Finding a blue-chip company with such an impressive yield is rare. InvestingPro+ provides a comprehensive view of Coal India’s dividend payout history through easy-to-read histogram charts, which visualize the payout trend and assist in making informed investment decisions. For example, these charts reveal that Coal India has maintained an average payout of around INR 18.5 per share over the past decade, indicating stability in its dividend payments—a crucial factor for any dividend stock.

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The dividend yield chart is another powerful tool that considers both the share price and dividend per share (DPS), plotting the yield trend over time. This helps investors gauge yield trends and compare them with historical data, significantly improving the timing of investment entries. For instance, the yield line for Coal India has flattened out since February 2024, suggesting that yields are no longer dropping. This could signal a potential reversal, indicating that either the stock price has stabilized or the DPS is steady—both positive signs for a dividend stock.

With its robust algorithms and user-friendly interface, the "I Dream of Dividends" screener empowers investors to efficiently sift through a vast array of stocks, saving valuable time while maximizing returns. Whether you're a seasoned investor or a novice, this powerful tool streamlines the process, allowing you to focus on what truly matters—building a high-quality dividend portfolio.

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X (formerly, Twitter) - Aayush Khanna

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