When it comes to investing, one of the best ways to build long-term wealth is through dividend-paying stocks. Besides providing regular income, these stocks also offer strong fundamentals. Often, they are backed by stable and growing businesses.
As an investor, you must be looking for stable and consistent returns. This is the reason dividend paying stocks should be an essential component of your portfolio.
However, how do you choose the best dividend paying stocks? The key is to look for companies with a consistent track record of paying dividends over several decades. These companies have weathered multiple economic cycles and continue to reward their shareholders.
Top 5 Stocks with 20+ Years of Dividend Payouts:
In this blog, we have curated five dividend stocks that have been paying handsome returns to their shareholders for more than 20 years.
1. CRISIL:
● Stock price as of Oct ‘24: ₹4,525
● Market cap: ₹32,169 Cr
● Dividend yield: 1.20%
CRISIL is a top rating agency in India with a track record of distributing dividends consistently for more than 30 years. The company has steadily grown its financial base since its inception. Currently, it has also ventured into research and risk advisory services. The diversified revenue stream of this company comes from both domestic and international operations. CRISIL has also expanded to North American and European markets.
From INR 11 per share in 2011, CRISIL has increased its dividend payout to INR 54 in December 2023. In the past year, the share prices of the company have recorded more than 21% growth.
2. Pidilite Industries:
● Stock price as of Oct ‘24: ₹3,159
● Market cap: ₹1,60,281 Cr
● Dividend yield: 0.51%
Pidilite Industries has been paying dividends since the 1990s. It is known for its iconic adhesive brand, Fevicol. The company has diversified into various segments, including industrial adhesives, construction chemicals, and art materials.
Over the last couple of decades, Pidilite has steadily increased its dividend payouts from INR 1 per share to INR 11 per share in 2024. Also, investors have benefitted through share value appreciation, as the stock witnessed an 11X growth over the last decade.
3. ITC:
● Stock price as of Oct ‘24: ₹493
● Market cap: ₹639,513 Cr
● Dividend yield: 2.79%
With its interests in FMCG, hotels, and agriculture, ITC is one of the most diversified conglomerates in India. Since 1994, it has been paying dividends and has significantly increased its dividend payouts in recent years. In recent times, its dividend payout ratio has reached a remarkable 98%, with a yield of around 3%.
Fundamentally, ITC looks strong with its diverse portfolio including more than 1,500 products across 20 categories. This includes cigarettes, packaged foods, and personal care products. Over the last two decades, ITC has multiplied investors’ wealth 26 times.
4. KEI Industries:
● Stock price as of OCt ‘24: ₹4,563
● Market cap: ₹37,117 Cr
● Dividend yield: 0.08%
KEI Industries is a leader in the wire and cable manufacturing sector in India. The company caters to both domestic and international markets, serving industries like power, infrastructure, and oil and gas.
The company has been consistently paying dividends to its shareholders for more than 20 years. While the dividend yield looks modest, the consistency of payout demonstrates its strong financial health.
As India further focuses on infrastructure and electrification, KEI Industries is likely to benefit in the coming years.
5. Rashtriya Chemicals and Fertilizers (RCF):
● Stock price as of Oct ‘24: ₹ 181
● Market cap: ₹ 9,047 crore
● Dividend yield: 0.68%
As a government-owned company, Rashtriya Chemicals and Fertilizers (RCF) has been consistently paying dividends for more than 30 years. It is a key player in the chemical and fertilizer sector. Thanks to the strong demand in the agricultural sector of India, RCF has a stable revenue base.
RCF has a solid track record of paying dividends, with consistent dividend payouts over the decades. With its respectable dividend yields, the company provides a reliable stream of income for investors.
RCF’s products remain in high demand as India increasingly focuses on boosting food security and productivity in agriculture.
Conclusion:
If you are looking to build a stream of regular income while benefiting from long-term capital appreciation, dividend-paying stocks bring you a fantastic opportunity. In this blog, we have shortlisted some of the most consistent dividend-paying stocks with a track record of over two decades.
Consider including these stocks in your portfolio on your share market app to create long-term wealth.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
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