Best Dividend Stocks Under Rs 500: Most long-term investors get disappointed, as they do not get the right value for their time and money invested in the stock market. After holding a security for a long period they may receive less capital appreciation. But, no more worries! You can earn a good return for both your time as well as money invested.
One such way of earning more is through investing in dividend stocks. So here, we present you the list of the best dividend stocks under Rs 500 to help you grow your wealth.
Best Dividend Stocks Under Rs 500
Under the best dividend stocks under Rs 500, we have picked the best stocks from different sectors of the economy. Here, we have discussed in brief the company and its financial performance to help you get a bird’s eye view of the stock.
Best Dividend Stocks Under Rs 500 #1 – ITC
ITC Ltd, originally named “Imperial Tobacco Company Of India Limited”, is an Indian conglomerate company that was initially started as a tobacco company. The company was established in 1910 in Kolkata, India.
The company operates in diversified business segments including FMCG, Hotels, Paperboards, Paper and Packaging, Infotech, and Agri-Business.
ITC being the leader in the domestic cigarettes market has a market share of over 80%. The company is a major player in the Indian market with over 36,500 employees and 200 plus manufacturing units all over the country. The company owns 25 FMCG brands and 115 hotels across 80 locations in the country.
As per the Q4 results of FY23 by ITC Ltd, the gross revenue of all the segments has increased by 17.6% and Profit After Tax (PAT) by 24.5%. The company also gives the shareholders good returns through the increase in EPS by 24%. The company is debt free for the last 5 years with increasing return ratios such as ROCE and ROE.
As a feather in its cap, the company has given consistent dividends over the last 10 years. As per the current share price, the company yields a dividend of 3.5%.
|CMP (In Rs)||470||Market Cap (in Rs Crs)||5,87,698|
|Dividend Yield (%)||4.04 %||Face Value (in Rs)||1|
|EPS (In Rs)||15.44||P/E Ratio||28.48|
|ROCE (in %)||35.81||ROE (in %)||27.75|
|Promoter Holding||0||Book Value||49.51|
|Debt Equity Ratio||0||Price to Book Value||8.89|
Best Dividend Stocks Under Rs 500 #2 – Indraprastha Gas
Indraprastha Gas Ltd is one of the noted natural gas distributors in India. This was established in 1998 to take over the Delhi City gas distribution Project from GAIL (India)for laying a network of gas distribution pipelines.
The company is engaged in the distribution of natural gas to the domestic, commercial, and transport sectors in the National Capital Territory of Delhi.
It supplies Compressed Natural Gas (CNG) for the transport sector, Piped Natural Gas (PNG) for the domestic and commercial sectors, and Regassified Liquefied Natural Gas (RLNG) to the industries.
The company has PSUs like GAIL and BPCL on board as promoters with an equal stake of 22.5% each along with the Government of NCT of Delhi with 5%.
Proceeding to the financials of the company, the company has shown phenomenal growth of 145% increase in sales from Rs 5,764 Crs in FY19 to Rs 14,145 Crs in FY 23 and 83% increase in net profit from Rs 755 Crs in FY19 to Rs 1,386 Crs in FY23.
Coming to the Return ratios the company has an increasing trend in ROCE and ROE post-pandemic. It is a debt-free company with increasing EPS Year On Year (YoY).
The company has been giving dividends for the past 10 years regularly. For the Year ending March 23, it has declared a dividend of 650 % on face value amounting to Rs 13 per share. As per the current share price of Rs 480, the dividend yield is 2.7%.
|CMP (In Rs)||487||Market Cap (in Rs Crs)||33,022|
|Dividend Yield (%)||2.7||Face Value (in Rs)||2|
|EPS (In Rs)||23.42||P/E Ratio||20.14|
|ROCE (in %)||22.4||ROE (in %)||20.67|
|Promoter Holding (%)||45||Book Value (In Rs)||113.3|
|Debt Equity Ratio||0||Price to Book Value||4.17|
Best Dividend Stocks Under Rs 500 #3 – Allsec Technologies
Allsec Technologies Limited is an Indian company that was incorporated in 1998 in Chennai, India. It is a global leader in outsourcing solutions that offers future-ready, resilient business solutions to industry heavy-weights, Fortune 100 companies, and growth-focused organizations.
It provides business solutions mainly under two segments, Digital Business Services and Human Resources Outsourcing (HRO). It was acquired by Quess Corp in 2019. Being in the industry for more than two decades, the company has over 5000 employees. It has operations in 3 locations across India namely NCR, Bengaluru, and Chennai.
There is an increasing trend in both revenues and profits of the company for the last 5 years from FY19 to FY23. The revenue has almost doubled in the past 5 years from Rs 261 Crs to Rs 390.5 Crs from FY 19 to FY 23.
Coming to net profits, we can a growth of 37% in net profits YoY from Rs 35 Crs to Rs 48Crs. Allsec Technologies has maintained a high ROE and ROCE. In addition to that, it has a high dividend yield of 4.23%.
|CMP (In Rs)||522||Market Cap (in Rs Crs)||803.44|
|Dividend Yield (%)||8.58||Face Value (in Rs)||10|
|EPS (In Rs)||32.06||P/E Ratio||14.74|
|ROCE (in %)||25.98||ROE (in %)||21.27|
|Promoter Holding (%)||73.39||Book Value (In Rs)||150.72|
|Debt Equity Ratio||0||Price to Book Value||3.14|
Best Dividend Stocks Under Rs 500 #4 – Gujarat Heavy Chemicals Limited
Gujarat Heavy Chemicals Limited is an Indian Company that was established in 1983. The company is mainly involved in business segments like manufacturing chemicals, Textiles, and Consumer Products. With the presence of three-plus decades in the industry, the company has generated a turnover of 37.89 billion.
In the chemical industry, GHCL manufactures Soda Ash with a production capacity of 11 lahks MTPA. Further, it has a vision of expanding the production capacity by another 500 thousand MTPA by 2025.
GHCLs is also among the leading yarn manufacturers in the country and produces cotton and synthetic yarns. GHCL’s Consumer Product division manufactures and sells Edible salt and Industrial grade salt under the brand name i-FLO & Sapan.
Going forward to the financials, we can see the growth in revenue as well as profits of the company. The revenue has increased from Rs 3,778 Crs to Rs 4,545 Crs from FY 22 to FY 23. The profits also surged up to 90% from Rs 598 Crs to Rs 1,141 Crs.
Further, the company has been paying consistent dividends for the past 5 years to its shareholders. According to the current share price of Rs 493.65, the dividend yield for the stock comes up to 3.55%.
|CMP (In Rs)||518||Market Cap (in Rs Crs)||4903|
|Dividend Yield (%)||3.55||Face Value (in Rs)||10|
|EPS (In Rs)||117.69||P/E Ratio||4.19|
|ROCE (in %)||31.97||ROE (in %)||28.85|
|Promoter Holding (%)||19.05||Book Value (In Rs)||413.84|
|Debt Equity Ratio||0.09||Price to Book Value||1.2|
Best Dividend Stocks Under Rs 500 #5 – Balmer Lawrie Investment
Balmer Lawrie Investments Ltd is a Government (Non-Banking Finance Institution)NBFC where the President of India is a major shareholder with a stake of 59.67%.
The company was incorporated as NBFC in 2001. Even though it is an NBFC, it does not undertake any non-banking finance activity except holding the equity shares of its subsidiary Balmer and Lawrie Company Ltd.
The subsidiary of Balmer Lawrie Investment Ltd is a Miniratna PSU that is engaged in the business of Industrial greases, specialty lubricants, logistic infrastructure, etc. The company is listed on the Bombay Stock Exchange and Calcutta stock exchange.
The revenue earned from the subsidiary is directly reflected in the financials of this holding company. The revenue of the company has increased from Rs 2060 Crs in FY 22 to Rs 2,328.39 Crs in FY 22 and the net profits have increased from Rs 137.20 Crs to Rs 172.36 Crs amounting to a 25.7% increase in overall net profit.
Talking about the Dividend yield, this is a good dividend-paying stock with a dividend yield of up to 7.5%. The company has been consistently giving dividends for the last 10 years to its shareholders.
|CMP (In Rs)||413||Market Cap (in Rs Crs)||914|
|Dividend Yield (%)||8.12||Face Value (in Rs)||10|
|EPS (In Rs)||73.46||P/E Ratio||5.45|
|ROCE (in %)||7.56||ROE (in %)||7.92|
|Promoter Holding (%)||59.67||Book Value (In Rs)||788.73|
|Debt Equity Ratio||0.08||Price to Book Value||0.51|
List Of Top Dividend Stocks Under Rs 500
|Sl No||Company||Current Price (Rs)||Dividend Yield(%)|
|2||Indraprastha Gas Ltd.||₹483.00||2.69%|
|3||LIC Housing Finance Ltd.||₹388.00||2.20%|
|4||Sun TV Network Ltd.||₹484.00||3.12%|
|5||Aditya Birla Sun Life AMC Ltd.||₹379.95||2.70%|
|7||Godrej Agrovet Ltd.||₹459.50||2.08%|
|8||Supreme Petrochem Ltd.||₹437.85||2.06%|
|9||E.I.D. - Parry (India) Ltd.||₹454.65||2.09%|
|10||Graphite India Ltd.||₹408.30||2.08%|
|12||West Coast Paper Mills Ltd.||₹477.00||2.10%|
|14||Gulf Oil Lubricants India Ltd.||₹478.15||5.22%|
|15||GOCL Corporation Ltd.||₹378.20||2.64%|
|16||Andhra Paper Ltd.||₹420.15||2.98%|
|17||Kalyani Steels Ltd.||₹369.00||2.70%|
|18||IG Petrochemicals Ltd.||₹497.00||2.02%|
|19||Igarashi Motors India Ltd.||₹456.50||2.20%|
|20||Century Enka Ltd.||₹420.80||2.38%|
|21||Balmer Lawrie Investments Ltd.||₹412.35||7.28%|
|22||Kilpest India Ltd.||₹425.00||2.47%|
|23||Shri Dinesh Mills Ltd.||₹494.95||2.04%|
|24||Narmada Gelatines Ltd.||₹408.00||2.45%|
|25||Panasonic Carbon India Company Ltd.||₹393.05||3.05%|
|26||Premco Global Ltd.||₹360.15||4.16%|
In this article on the best dividend stocks under Rs 500, we have selected 5 stocks that yield good dividends on a regular basis. Along with being a good dividend-yielding company, most of the selected companies are debt free with good fundamentals.
This could be an added advantage if you are looking for long-term investment options. Hope, this post on the best dividend stocks under Rs 500 adds value to your investment journey.
Let us know your views regarding these stocks in the comment section below!
Written By Bhagyalakshmi Patil
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.
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