Best Dividend Stocks Under Rs 50: If you are a long-term investor, then the best way to generate additional income from your stocks along with the capital appreciation over the years is through earning dividends. But, again the question that pops up in our mind is, Can we buy decent dividend-paying stocks at affordable prices? Yes, Of course, we can buy the best dividend-yielding stocks at affordable prices. In fact, we can buy stocks with a pocket-friendly amount of just Rs 50 also!
In this article on best dividend stocks under Rs 50, we are going to discuss the top 5 best dividend stocks under Rs 50, so without any further delay let’s get started.
Best Dividend Stocks Under Rs 50
In this article, we will look into the best dividend stocks under Rs 50 from all sectors. Then let us briefly look into the overview of the company, its business models, financial performances, and future plans. Then, Let’s get started.
Best Dividend Stocks Under Rs 50 #1 – SJVN Limited
SJVN Limited was incorporated in 1988 as a joint venture of the Government of India and the Government of Himachal Pradesh. It is a Mini Ratna and Schedules A Public Sector Undertaking (PSU).
This PSU is mainly engaged in the business of power generation. It also provides consultancy services, divisions including thermal power, hydropower, wind power, solar power, power transmission, and power trading.
The company started with a single project of India’s largest 1500 MW Nathpa Jhakri Hydro Power Station in Himachal Pradesh. It later worked on eight major projects totaling 2091.5 MW of installed capacity and 86 km 400 KV transmission line. SJVN is presently operating power projects in various states of India like Bihar, Assam, Punjab, and many more neighboring countries Nepal and Bhutan.
It is a listed company majorly owned by the Government of India with a stake of 59.92%. The Government of Himachal Pradesh holds a 26.85% stake and the rest of 13.23% by the public.
The company has financially outperformed the preceding years with a whooping increase in profit of 13.12% from 40.76% in FY 2021-22 to 46.11% in FY 2022-23.
With respect to dividends, the company has given a dividend of Rs 668.07 crores during FY 2021-22. It has a dividend yield of 4.93% and a good dividend-paying track record in the last 5 years.
|CMP (in Rs.)||35.3||Market Cap (Cr)||Rs 13,887.9|
|EPS (in Rs.)||3.49||Stock P/E||10.13|
|ROCE (in %)||8.81||ROE (in %)||7.63|
|Promoter Holding||86.77||Book Value||35.2|
|Debt to Equity||1.01||Price to Book Value||1.2|
|Dividend Yield||4.93||Face Value||10|
Best Dividend Stocks Under Rs 50 #2 – IRFC
IRFC, incorporated in 1986, is a Schedule A Miniratna Public Sector Enterprise under the administrative control of the Ministry of Railways. It was established to serve as a dedicated financing arm for the Indian Railways. The company aimed to mobilize funds from domestic as well as overseas capital markets.
It is also registered as a Systemically Important Non–Deposit taking Non-Banking Financial Company (NBFC – ND-SI) and Infrastructure Finance Company (NBFC- IFC) with the Reserve Bank of India (RBI).
In more than 3 decades of existence, IRFC has played a significant role in supporting the expansion of the Indian Railways. So far, it has funded the acquisition of 13349 locomotives, 73979 passenger coaches, and 259661 wagons. This constitutes around 75% of the total rolling stock fleet of Indian Railways.
The company has witnessed uninterrupted growth over the last 5 years. Their average growth rate was around 17%, along with consistent growth in profits over the years.
Indian Railway Finance Corporation had last declared a dividend of 14.00% amounting to Rs 1.4 per share in FY 22. The PSU has a dividend yield of 4.34%. Even though it has issued the dividend only twice in the past 5 years, one can see the huge growth potential in this company, as it is the financing arm of Indian Railways, which is a monopoly sector in India.
|CMP (in Rs.)||31.9||Market Cap (Cr)||Rs 41,714.67|
|EPS (in Rs.)||4.98||Stock P/E||6.58|
|ROCE (in %)||5.12||ROE (in %)||15.84|
|Promoter Holding||86.36||Book Value||31.3|
|Debt to Equity||9.47||Price to Book Value||1|
|Dividend Yield||4.34||Face Value||10|
Best Dividend Stocks Under Rs 50 #3 – NHPC
NHPC Limited is the flagship hydropower development company in India which was established in 1975. It is a Mini Ratna, a Public Sector Undertaking (PSU)company under the Ministry of Power. The company is mainly engaged in the sale of hydroelectric power in bulk to various power utilities.
The company has an installation base of approximately 7071.2 MW (Megawatts) from over 24 power plants. It contributes to around 15% of the total hydroelectric capacity in India. In February 2023, the company received approval from the cabinet committee on economic affairs for the investment of Rs 1,600 crores, for pre-investment activities for its 2,880 MegaWatt Dibang multipurpose project in Arunachal Pradesh. Estimated to be the largest hydroelectric project, the cost may go up to Rs 31,876.39 crores.
Being the leading company in hydropower it has earned decent revenue for the past 5 years. There is an increase in the net profits in the past 5 years from Rs 2,386 crores in FY 2017-18 to Rs 4,734 in FY 2022-23.
It has a dividend yield ratio of 4.25%. The company declared an equity dividend of 18.10% amounting to Rs 1.81 per share at the end of FY 2021-22. The company has a good track record of declaring regular dividends for the past 5 years.
|CMP (in Rs.)||42.95||Market Cap (Cr)||Rs 43,153.17|
|EPS (in Rs.)||3.83||Stock P/E||11.23|
|ROCE (in %)||6.48||ROE (in %)||11.11|
|Promoter Holding||70.95||Book Value||37.61|
|Debt to Equity||0.75||Price to Book Value||1.13|
|Dividend Yield||4.25||Face Value||10|
Best Dividend Stocks Under Rs 50 #4 – Geojit Financial Services
Geojit financial services is an investment services company headquartered in Kerala, India, which was established in the year 1987. With more than 3 decades of experience in capital markets, the company offers all kinds of financial products and services such as equity, derivatives, mutual funds, insurance, and asset portfolio management services. Over the years, the company has built a trustworthy group of around one billion customers.
As far as the financials of the company is concerned, it has grown at a fast pace. The net profit has increased from Rs 28 crores in FY19 to Rs 101 crores in FY23. Overall we see consistent growth in the net profit as well as sales of the company during the past 5 years.
The company has a dividend yield of 4.9% with a good track record of giving regular dividends over the last 5 years.
|CMP (in Rs.)||42.9||Market Cap (Cr)||Rs 1,024.28|
|EPS (in Rs.)||4.06||Stock P/E||10.52|
|ROCE (in %)||30.69||ROE (in %)||23.51|
|Promoter Holding||60.64||Book Value||32.12|
|Debt to Equity||0.07||Price to Book Value||1.41|
|Dividend Yield||4.9||Face Value||1|
Best Dividend Stocks Under Rs 50 #5 – Ujjivan Small Finance Bank
Ujjivan Small Finance Bank is an Indian bank that was incorporated as Non-Banking Financial Corporation (NBFC) in 2005. Later in 2017, it was established as a small finance bank in Bengaluru, Karnataka. It is licensed under section 22 (1) of the Banking Regulation Act, 1949 to conduct small finance banking business from the Reserve Bank Of India.
The bank mainly aims to provide financial services to unserved and underserved customers. It offers all the banking products and services including savings accounts, term deposits, loans, online banking, internet banking, insurance services, and many more.
The bank has had lesser growth in profits in the past 5 years. It has transitioned from a loss of Rs 415 crores in FY 22 to a profit of Rs 1,100 crores in FY23. The dividend yield is 3.5% as of FY 2022-23.
|CMP (in Rs.)||34||Market Cap (Cr)||Rs 6,650.06|
|EPS (in Rs.)||5.63||Stock P/E||6.05|
|ROCE (in %)||-7.33||ROE (in %)||-14.98|
|Promoter Holding||83.32||Book Value||19.53|
|CASA||0||Price to Book Value||1.68|
|Dividend Yield||3.5||Face Value||10|
In this article, we have discussed the Best dividend stocks under Rs 50, that yield decent dividends. The common factor among most of these stocks is they are PSU Miniratna companies backed by the government. Hence it builds a sense of trust for long-term investors to pick these stocks. Hope this adds value to your investment journey. Keep reading!
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