Stocks below Rs 100 with an impressive dividend payout ratio!

A higher payout ratio tends to represent the free cash flow nature of the business whereas a lower ratio indicates that the company is not generating too much surplus cash.   

As per one of the studies undertaken in the USA, it was observed that capital gains accounted for only 53 per cent of all shareholders' gains whereas the other 47 per cent was generated from dividend payoffs.   

Aggressive investors are blindfolded when it comes to dividends as they do not pay too much attention to the dividend-paying capacity of an investment as their area of focus remains on making capital gains i.e., selling a stock at a higher price than what it was bought for. These investors feel that buying dividend stock is more suited for risk-averse folks rather than for the aggressive investor, a mistake that they repent later.   

So, in this article, we have curated a list of stocks that trade below Rs 100 and witnessed impressive growth in dividend payout ratio in recent times as compared to its three-year average dividend payout ratio. Also, the reason why we have selected stocks below Rs 100 is that these stocks are popular among the investor community.   

The dividend payout ratio is the percentage of profits distributed back to the shareholders as dividends. A higher payout ratio tends to represent the free cash flow nature of the business whereas a lower ratio indicates that the company is not generating too much surplus cash.   

The formula to calculate the ratio is the dividend per share/EPS *100 (where EPS stands for earning per share).   

Now, finally, we will reveal the list of the stocks: 

Do you own any of the above-mentioned stocks? If yes, let us know in the comments section the rationale behind picking that stock.   

3 comments on article "Stocks below Rs 100 with an impressive dividend payout ratio!"

Mudda Suresh

Excellent Sir,

You have been innovative in revommonding stocks

8/20/2022 11:50 PM

Bhavi Parekh

I had picked up this stock at 86 hoping it would go above 110 but came down by almost 25% so forme, it is a liability stock which I hope to remove once price reaches in the range of 87-88. Is it worth retaining? Holding it for a little more than 6-7 months now.

8/21/2022 10:41 AM

S Venkat Ramani

I had bought 3500 shares of BPCL at a price of Rs 493 a year back for dividend and share value appreciation. While I did get dividend but the share value has depreciated more that double of the dividend that I got.

Am stuck now.

8/22/2022 1:10 PM

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