Hinduja Global Solutions joins list of stocks that pay dividends better than FD returns; find others here!

The secondary revenue source is offset by dividend income.

Investing in the dividend yeilding shares can act as a secondary revenue source. However, the fixed deposit returns, even after the most recent increase, do not protect you against inflation. Nevertheless, several of these businesses, which are listed below, offer returns that are comparable to or even better than fixed deposits and also, pay dividends. Also, other than the dividend, you can also anticipate stock appreciation as these stocks rise in value.   

When India's main public sector lender i.e. State Bank of India (SBI) does not offer an interest rate higher than 5.65 per cent and the PPF rate is 7.1 per cent, the allure of dividend stocks grows.  

A list of ten stocks with strong dividend yields that outperform FD & PPF returns:  

Hinduja Global  

The company had an 8.3 per cent dividend yield in FY22. The stock has jumped 365 per cent in the last three years and gained about 467 per cent in the last five years.  

Vedanta  

The natural resources conglomerate has the highest dividend yield among BSE-listed businesses in FY22 at 17.1 per cent. Vedanta's stock has gained about 85 per cent in the last three years whereas it plunged about 20 per cent in the past five years.  

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NMDC  

In FY22, the government-owned mining firm paid its stockholders a dividend yield of 12.1 per cent. The company's shares have jumped 47 per cent in the last three years and slipped about 8 per cent in the last five years.  

IOCL  

In FY22, Indian Oil Corporation Ltd paid out a dividend yield of 11.8 per cent. The shares of IOCL have fallen 15 per cent in the last three years.  

INEOS Styrolution  

In FY22, INEOS Styrolution issued dividends yielding 11.4 per cent. The scrip rose about 42 per cent in the last three years while it tumbled over 2 per cent in the past five months.  

SAIL  

One of India's biggest steel producers offered a dividend return of 10.8 per cent in FY22. Apart from the attractive dividend, the company's shares also rose 149 per cent in the last three years. In a period of five years, the company has delivered 32 per cent returns.  

Power Finance Corporation  

PFC, a state-owned financial organisation, paid dividends with a return of 10.2 per cent. The company’s shares have dipped around 9 per cent in the three years while it declined around 6 per cent in the last five years.  

REC  

In FY22, the public infrastructure finance firm produced a dividend yield of 9.3 per cent. The shares of REC rose nearly 20 per cent in the last six months while the scrip dropped nearly 4 per cent in the past three years.  

HUDCO  

In FY22, the public firm distributed a dividend yield of 8.5 per cent. In the last three years, HUDCO shares have gained about 17 per cent while it tanked 52 per cent in the past five years.  

NALCO  

In FY22, the company issued dividends with an 8.4 per cent yield. The shares of the company have increased by more than 88 per cent over the last three years but decreased by about 14 per cent during the last three months.