Blue Chip stocks are the shares of large and reputable companies that have an enviable market capitalization. These companies are known to be financially sound, well-established, and have dependable earnings. Investing in the stocks of such companies is a great way to earn good returns with a lower risk of loss.
Not all blue-chip companies pay dividends. These companies, especially when they are younger, still have plenty of opportunities to invest their profits back into the business in order to accelerate their growth.
Here are three high dividend-yield blue chip stocks selected based on parameters like market capitalization (₹ 30,000 to ₹ 2500000), debt-to-equity ratio (0 to 0.5), 3 yr return on equity (12% to 100%), current ratio (1 to 10), 3yr return on assets (12% to 100%), 3 yr revenue growth (10% to 500%) and dividend yield (2% to 30%):
HCL Technologies Ltd
The company has a market capitalization of ₹ 2,81,929 crores. It has a very good dividend yield of 4.61%. Recently, the company paid an interim dividend of ₹ 10 per share (500% of its face value).
HCL Technologies is a leading global IT services company and among the top five IT companies in India in terms of revenue. It offers services like software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO.
Mphasis Ltd
The company has a market capitalization of ₹ 37,744 crores. It has a good dividend yield of 2.30%. The company, in July last year, paid a final dividend of ₹ 46 per share (460% of its face value).
Mphasis a global Information Technology (IT) solutions provider. It provides cloud and cognitive services and applies next-generation technology to help enterprises transform businesses globally.
NMDC Ltd
The company has a market capitalization of ₹ 36,808 crores. It has an excellent dividend yield of 11.74%. The company, in February last year, had paid an interim dividend of ₹ 5.73 per share (573% of its face value).
NMDC is a navratna company under the aegis of the Ministry of Steel, Government of India. It is engaged in the exploration and production of iron ore along with diamond, the production and sale of sponge iron and the generation and sale of wind power.
Written by Simran Bafna
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
