How to use the High Dividend Stocks scanner?
This scanner gives you a list of Indian stocks that offer substantial dividend yields and can create income-generating investment opportunities for investors.
Let’s learn about the basic terms first.
Dividend
It is a portion of a company’s earnings distributed to shareholders, typically in cash or additional shares. In this scanner, we selected companies that are giving high dividends every year compared to their previous year’s dividend which provides investors with a steady income stream and can signal a company’s financial health and profitability. Reinvested dividends can also enhance long-term returns through compounding.
Dividend Yield
It is a financial ratio that shows the annual dividend income an investor receives relative to the stock’s current price. It is calculated as (Annual Dividends per Share / Price per Share). In this scanner, we use the dividend yield to find the return on investment from dividends alone which helps in assessing the income-generating potential of a stock.
Average Dividend Payout
This refers to the average percentage of earnings a company distributes to shareholders as dividends over a specific period. In this scanner, we use this metric to gauge a company’s financial health and commitment to returning profits. A consistent or increasing average payout ratio can indicate stability and potential for reliable income, influencing investment decisions.
By using the above filters for the scanner, we have obtained a list of companies that are growing at a consistent rate and offer substantial dividend yields.
Don’t forget
- This is a first-level filter aimed to give you a good starting point in your search for the lists of Indian stocks that offer substantial dividend yields and create income-generating investment opportunities for investors. You can further analyze these stocks to ascertain if they are good businesses and command a seat in your investing portfolio.
- You can use a market capitalization of more than INR 5,000 crores to apply this filter on large, mid, and some good small-cap companies. The reliability of data on companies smaller than this is somewhat susceptible and they are more risky.
- Some companies are cyclical in nature and you have to analyze their historical data to track the company’s performance based on their nature of business.
Learn investing with these courses
Company Valuation Analysis
by Kumar Saurabh
How to Invest for Long Term
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Frequently Asked Questions
Can I invest in all the companies that are listed in this scanner?
No! This scanner is just to be used for idea generation. As mentioned in the ‘Don’t Forget’ section, this is just a first-level filter aimed to give you a starting point in your search for high dividend-paying companies. Especially look for companies with sustainable business models. You can learn more about long term investing in Mr. Arvind Kothari’s How to Pick Stocks for Long Term course on Upsurge.club.
How can I learn more about investing in the right stocks?
Upsurge.club offers a range of courses on investing where you can learn everything from the basics to advanced strategies and idea generation methods. You can find them here.