Highest Dividend Paying Penny Stocks in India 2024

Dividend-paying penny stocks can be a great way to generate passive income and invest in the stock market. These stocks offer investors the opportunity to earn regular income regardless of stock price movements. In this guide, we will explore the world of dividend-paying penny stocks in India, including their overview, benefits, risks, and strategies to invest in them.

What is Dividend Paying Penny Stocks?

Dividend-paying penny stocks are shares of companies that pay regular dividends to their shareholders. These stocks generally trade at less than Rs 200 per share and offer the potential for high returns. However, like any other investment, investing in dividend-paying penny stocks has its own risks and benefits.

Types of dividend-paying penny stocks

Dividend-paying penny stocks can be divided into two categories: high dividend-paying penny stocks and safe dividend-paying penny stocks.

Penny stocks that offer high dividends offer attractive dividend returns, often exceeding 5%. These stocks typically have a proven track record of delivering a steady cash flow and consistent dividends. However, it is important to note that dividends provided by high dividend-paying penny stocks may be more sensitive to stock price fluctuations.

On the other hand, safe dividend-paying penny stocks may not have high dividend returns like high dividend-paying stocks, but they are more reliable and less volatile. These stocks usually have strong fundamentals and dividend payout ratios that indicate their ability to continue paying dividends even in challenging market conditions.

Identifying dividend-paying penny stocks

Dividend-paying penny stocks are shares of companies that provide regular payouts to their shareholders. These stocks typically trade at low prices, making them attractive to investors looking to generate passive income from their portfolios. While dividend-paying penny stocks can offer attractive returns, it is important to identify them carefully before investing.

When looking for dividend-paying penny stocks, it's important to consider some common characteristics. First, these companies must have a solid track record of consistently paying dividends. Look for companies that have paid consistent dividends for at least a few years. Secondly, look for companies that have strong balance sheets and healthy cash flows. This ensures that they have the financial ability to continue paying dividends even in challenging market conditions.

There are many ways to find dividend-paying penny stocks. One way is to conduct thorough research on individual companies and their financial statements. The other option is to use screening tools or services that specifically target dividend-paying penny stocks. These tools can provide insights into dividend yield, payout ratios, and other relevant financial metrics for dividend-paying penny stocks.

Analyzing Dividend-Paying Penny Stocks

It is important to conduct a thorough analysis of dividend-paying penny stocks before making an investment decision. Here are some factors to consider when evaluating these stocks:

• Dividend Return: Dividend consideration is an annual dividend payment expressed as a percentage of the stock price. This is an important metric for investors looking for income generation. However, it is important to note that high dividend returns may not be sustainable in the long run.
• Payout ratio: The payout ratio is the percentage of a company's income paid as dividends. A low payout ratio indicates that the company is able to maintain its dividend payments.
• Financial health: Closely examine the financial status of dividend-paying penny stocks. Look for companies with strong earnings growth, strong balance sheets, and manageable debt levels. These factors contribute to the company's ability to continue paying consistent dividends.
• Industry: Consider the industry of dividend-paying penny stocks. Some industries like utilities and real estate are known for their high dividend returns. However, it is essential to evaluate the growth prospects and outlook for the industry as a whole.
• Stock price: While dividend-paying penny stocks can provide high yields, it is important to evaluate the stock price. Penny stocks can be highly volatile, making it necessary to assess the potential benefits and risks of investing.

Best High dividend Penny stocks in India

Dividend-paying penny stocks can be a valuable investment option for investors looking for high dividend yields. In this blog post, we will explore the world of dividend-paying penny stocks in India, including their advantages, strategies to invest in them, and potential risks.

1. Motherson Sumi Wiring India Ltd

• Market Cap: ₹ 33,901.75 Cr.
• Price to Earning (P/E): 53.11
• Dividend yield: 0.85 %
• ROCE: 47.97 %
• Exchange: BSE, NSE
• Official Website: mswil.motherson.com

Motherson Sumi Wiring India Limited is a leading company providing electrical and automotive wiring harness solutions in India. The company was founded in 1985 and is headquartered in Noida, Uttar Pradesh. Motherson Sumi Wiring India Limited offers a wide range of products and services to meet diverse customer requirements. Its product portfolio includes wiring harnesses, automotive connectors, and electrical components. With its strong market presence and commitment to quality, the company has established itself as a reliable partner in the automotive and electrical industries.

2. Easy Trip Planners Ltd

• Market Cap: ₹ 7,600.28 Cr.
• Price to Earning (P/E): 49.99
• Dividend yield: 0.23 %
• ROCE: 40.14 %
• Exchange: BSE, NSE
• Official Website: easemytrip.com

Easy Trip Planners Limited is a leading travel company in the industry. With a rich history from [insert year], it has established itself as a trusted name in the travel sector. The company offers a diverse range of products and services to meet the needs of travelers around the world. Its services include flight bookings, hotel bookings and vacation packages. Additionally, Easy Trip Planners Limited offers travel insurance and visa assistance. With its extensive market presence and diverse offerings, the company is succeeding in catering and catering to the needs of travelers around the world.

3. NBCC (India) Ltd

• Market Cap: ₹ 29,003.53 Cr.
• Price to Earning (P/E): 54.36
• Dividend yield: 0.34 %
• ROCE: 32.71 %
• Exchange: BSE, NSE
• Official Website: nbccindia.in

NBCC (India) Limited is a leading construction and infrastructure company in India. It was established in 1960 and is headquartered in New Delhi. The company specializes in various sectors including housing, commercial, industrial and urban development. It offers a wide range of products and services, including construction, project management, land development, and asset monetization. NBCC has a strong presence in the real estate market and has completed several projects across the country. With an experienced management team and a skilled workforce, NBCC is well-positioned to capitalize on the growing demand for infrastructure development in India.

4. Jamna Auto Industries Ltd

• Market Cap: ₹ 5,068.53 Cr.
• Price to Earning (P/E): 24.68
• Dividend yield: 1.50 %
• ROCE: 30.42 %
• Exchange: BSE, NSE
• Official Website: jaispring.com

Jamna Auto Industries Limited was established in 1987 and is a leading automotive manufacturer in India. The company specializes in the production of commercial vehicles and passenger vehicles. Jamna Auto Industries Limited has a strong presence in the domestic market and has a significant market share. The company offers a wide range of products, including trucks, buses, and tractors. Jamna Auto Industries Limited also offers a wide range of after-sales services to its customers. With its commitment to innovation and customer satisfaction, Jamna Auto Industries Limited has established itself as a trusted brand in the automotive sector.

5. Man Infraconstruction Ltd

• Market Cap: ₹ 7,268.96 Cr.
• Price to Earning (P/E): 24.20
• Dividend yield: 0.83 %
• ROCE: 28.84 %
• Exchange: BSE, NSE
• Official Website: maninfra.com

MAN Infrastructure Limited is a leading player in the infrastructure development sector in India. With a strong background that has gone back several decades, the company has established itself as a trusted name in the industry. MAN Infraconstruction Limited provides services to a variety of customers and specializes in a range of sectors including highways, bridges, airports, and railways. Its expertise extends into project planning, design, construction, and maintenance. The company's products and services are tailored to meet the specific needs of infrastructure projects. It provides end-to-end solutions, ensuring on-time delivery and high-quality standards. Focusing on technological advancements and sustainability, MAN Infraconstruction Limited is committed to advancing infrastructure development in India.

6. Lloyds Engineering Works Ltd

• Market Cap: ₹ 7,868.09 Cr.
• Price to Earning (P/E): 98.55
• Dividend yield: 0.15 %
• ROCE: 28.72 %
• Exchange: BSE, NSE
• Official Website: lloydsengg.in

Lloyds Engineering Works Limited is a well-known company specializing in engineering solutions. With a rich background in industrial engineering, the firm has gained a reputation for its high-quality products and exceptional service.

Lloyds Engineering Works Limited serves various industries including automotive, construction, and renewable energy. Their offering includes engineering design, manufacturing, and installation, all executed with precision and expertise.

The company's commitment to customer satisfaction makes them different. They work closely with their customers to understand their specific needs and provide solutions that exceed expectations. With a team of highly skilled engineers and dedication to continuous improvement, Lloyds Engineering Works Limited is a trusted partner in the engineering industry.

7. Gujarat Pipavav Port Ltd

• Market Cap: ₹ 9,656.74 Cr.
• Price to Earning (P/E): 25.42
• Dividend yield: 3.05 %
• ROCE: 22.66 %
• Exchange: BSE, NSE
• Official Website: apmterminals.com

Gujarat Pipavav Port Limited (GPPL) is a major port company of India. It was established in 1997 and operates the Pipavav port on the west coast of India. GPPL provides an important transportation hub for various industries, including oil and gas, iron ore, and coal. It handles about 70 million tonnes of cargo annually. Additionally, GPPL offers various products and services, including container handling, bulk cargo handling, and warehousing facilities. With its strategic location and efficient operation, GPPL plays an important role in the maritime industry.

8. Indian Oil Corporation Ltd (IOCL) 

• Market Cap: ₹ 235,457.76 Cr.
• Price to Earning (P/E): 5.64
• Dividend yield: 7.20 %
• ROCE: 21.24 %
• Exchange: BSE, NSE
• Official Website: iocl.com

Indian Oil Corporation Limited (IOCL) is the largest government-owned oil refining and marketing company in India. It was established in 1959 and is headquartered in New Delhi. With a market share of around 40%, IOCL has a pan-India presence and operates refineries, pipelines and fuel stations. Its product offerings include petroleum products including gasoline, diesel, kerosene, aviation fuel and lubricants. IOCL also invests in research and development and green energy initiatives. It plays a vital role in India's energy sector and contributes to the country's economic growth and development.

9. Marksans Pharma Ltd

• Market Cap: ₹ 7,162.63 Cr.
• Price to Earning (P/E): 22.83
• Dividend yield: 0.32 %
• ROCE: 20.61 %
• Exchange: BSE, NSE
• Official Website: marksanspharma.com

Marksons Pharma Limited is a leading pharmaceutical company in India with a rich history. Founded in 1986, the company has expanded its operations globally. With a presence in over 40 countries, Marksons Pharma is committed to delivering high-quality medicines. The company offers a wide range of products and services, including generic drugs, over-the-counter products, and nutraceuticals. With its strong focus on research and development, Markssons Pharma is committed to providing affordable and accessible healthcare solutions.

10. National Aluminium Company Ltd

• Market Cap: ₹ 33,934.00 Cr.
• Price to Earning (P/E): 19.26
• Dividend yield: 2.43 %
• ROCE: 16.95 %
• Exchange: BSE, NSE
• Official Website: nalcoindia.com

National Aluminium Company Limited (NALCO) is a leading Indian state-owned company specializing in aluminium production. It was established in 1981 and is headquartered in Bhubaneswar, Odisha. Nalco operates in various sectors including bauxite mining, alumina refining, primary aluminium production and value-added products. The company's primary products include alumina, aluminum, and value-added aluminum products. NALCO's market is diversified, serving industries such as power, automotive and packaging. Focusing on innovation and sustainability, the company aims to contribute to the growth and development of the aluminium industry in India.

11. Gujarat Ambuja Exports Ltd

• Market Cap: ₹ 6,497.53 Cr.
• Price to Earning (P/E): 18.78
• Dividend yield: 0.25 %
• ROCE: 16.54 %
• Exchange: BSE, NSE
• Official Website: ambujagroup.com

Gujarat Ambuja Exports Limited (GAEL) is a leading Indian company specializing in agricultural exports. With its rich history since the 1960s, GAEL has established itself as a reliable exporter of a wide range of agricultural commodities. The company's market presence is strong in various countries around the world, including Europe, Asia, and the Middle East. GAEL offers a wide range of products including cereals, pulses, oilseeds, spices and processed foods. With a firm commitment to quality, sustainability, and customer satisfaction, GAEL is flourishing as a leading player in the agri export industry.

12. Welspun Living Ltd

• Market Cap: ₹ 14,032.08 Cr.
• Price to Earning (P/E): 20.86
• Dividend yield: 0.07 %
• ROCE: 16.12 %
• Exchange: BSE, NSE
• Official Website: welspunindia.com

Welspun Living Limited is a famous Indian textile company with a long history. It was founded in 1985 and has grown to become one of the largest textile manufacturers in the world. With a presence in over 50 countries, the company offers a wide range of products, including home textile, bath linen, and bedding. Known for its high-quality products, Welspun Living has gained popularity in both domestic and international markets. The company's commitment to innovation and sustainability has also contributed to its success.

13. Electrosteel Castings Ltd

• Market Cap: ₹ 9846.65 Cr.
• Price to Earning (P/E): 13.31
• Dividend yield: 0.54 %
• ROCE: 15.95 %
• Exchange: BSE, NSE
• Official Website: electrosteel.com

Electrosteel Castings Limited is a well-known company in the field of steel castings. With a rich history since 1946, Electrosteel has established itself as a reliable supplier of high-quality steel castings. The company's presence in the market is evident through its wide customer base, which includes various industrial sectors such as automotive, construction, and power generation. Electrosteel offers a wide range of products including gray and ductile iron castings, machined components and special steel castings. With its commitment to quality and customer satisfaction, Electrosteel Castings Limited continues to play an important role in the steel casting industry.

14. EPL Ltd

• Market Cap: ₹ 6145.02 Cr.
• Price to Earning (P/E): 24.01
• Dividend yield: 2.23 %
• ROCE: 15.1 %
• Exchange: BSE, NSE
• Official Website: eplglobal.com

EPL Limited is a leading company in the field of Engineering, Procurement and Construction (EPC). With a rich history spanning several decades, EPL has established itself as a trustworthy partner in completing complex projects worldwide. The company has a strong market presence, with significant presence in various industries such as oil and gas, power generation, and infrastructure. EPL offers a wide range of products and services, including engineering, project management, procurement and construction services. With its diverse expertise and commitment to quality, EPL is well-positioned to meet the challenges of the constantly evolving EPC industry.

15. Firstsource Solutions Ltd

• Market Cap: ₹ 13998.22 Cr.
• Price to Earning (P/E): 27.2
• Dividend yield: 1.76 %
• ROCE: 14.67 %
• Exchange: BSE, NSE
• Official Website: firstsource.com

Firstsource Solutions Limited is a leading provider of business process outsourcing solutions. The history of the company dates back to 2007, when it was founded by a group of industry experts. With a special focus on customer experience, FirstSource offers a wide range of products and services tailored to meet the unique needs of its customers. The company's customer base is spread across various industries, including banking, insurance, healthcare, and telecommunications. By leveraging its expertise in automation, analytics, and digital solutions, FirstSource helps businesses optimize their operations and increase customer engagement. Overall, Firstsource Solutions Limited has established itself as a leading provider of BPO solutions, which help businesses increase growth and efficiency.

16. Paisalo Digital Ltd

• Market Cap: ₹ 6434.62 Cr.
• Price to Earning (P/E): 36.02
• Dividend yield: 0.07 %
• ROCE: 14.06 %
• Exchange: BSE, NSE
• Official Website: paisalo.in

Paisalo Digital Limited is a technology company specializing in providing digital solutions to businesses. With a rich history since the early 2000s, Paisalo Digital has established itself as a trusted partner to customers in various industries. The company has a strong market presence with a diverse customer base spread across both local and international markets. Paisalo Digital offers a range of products and services tailored to meet the needs of businesses of all sizes. With their expertise in software development, cloud computing, and digital marketing, they enable clients to embrace the digital age and achieve success.

17. Manappuram Finance Ltd

• Market Cap: ₹ 16115.28 Cr.
• Price to Earning (P/E): 7.37
• Dividend yield: 1.87 %
• ROCE: 13.75 %
• Exchange: BSE, NSE
• Official Website: manappuram.com

Manappuram Finance Limited is a leading provider of financial services in India. The company was established in 1949 and has since become one of the largest gold loan NBFCs in the country. Manappuram Finance offers a wide range of products and services, including Gold Loan, Personal Loan, Insurance, and Wealth Management. With a strong market presence, the company has expanded its operations to multiple states in India. With its focus on financial inclusion and customer satisfaction, Manappuram Finance continues to forge ahead in the market.

18. Samvardhana Motherson International Ltd

• Market Cap: ₹ 123547.86 Cr.
• Price to Earning (P/E): 43.09
• Dividend yield: 0.36 %
• ROCE: 13.68 %
• Exchange: BSE, NSE
• Official Website: motherson.com

Samvardhana Motherson International Limited is a global automotive component manufacturer headquartered in India. The company was founded in 1975 and has grown to become one of the largest automotive component suppliers in the world. Stud Motherson International Limited offers a wide range of products and services, including wiring harnesses, cockpit modules and seating systems. The company operates in many regions around the world and provides services to various automobile manufacturers. With its strong market presence and innovative solutions, Samvardhan Motherson International Limited plays an important role in the automotive industry.

19. HFCL Ltd

• Market Cap: ₹ 18332.17 Cr.
• Price to Earning (P/E): 55.58
• Dividend yield: 0.16 %
• ROCE: 13.26 %
• Exchange: BSE, NSE
• Official Website: hfcl.com

HFCL Ltd is an established company with a strong background in the industry. With a strong presence in the market, it offers a wide range of products and services to meet diverse customer requirements. The company's expertise lies in providing innovative solutions and excellent customer service. With a strong focus on research and development, HFCL Ltd remains ahead in technological advancements, ensuring its competitiveness in the market.

20. Gateway Distriparks Ltd

• Market Cap: ₹ 5201.79 Cr.
• Price to Earning (P/E): 21.2
• Dividend yield: 1.92 %
• ROCE: 12.53 %
• Exchange: BSE, NSE
• Official Website: gatewaydistriparks.com

Gateway Distriparks Limited is a logistics and warehousing company operating in the Asia Pacific region. Founded in 2010, the company has become a major player in the warehousing and distribution industry. Gateway Distriparks Limited offers a wide range of products and services to meet the needs of its customers. With its state-of-the-art facilities and extensive network, the company provides efficient and reliable logistics solutions. Its clients include multinational corporations, e-commerce companies, and retailers. By leveraging technology and innovative strategies, Gateway Distriparks Limited ensures customer satisfaction and drives business growth.

Conclusion

Dividend-paying penny stocks can be an attractive investment option for investors seeking high dividend yields. By carefully identifying, analyzing, and managing risks, investors can consider adding dividend-paying penny stocks to their portfolios to generate regular income. However, it is important to conduct thorough research and exercise caution before investing in these stocks.