Actual Question
What are some reliable investments with steady returns?
I own some stocks in security tech companies but the returns are sporadic at best. I need something that has solid return rates. Plus i hate jumping through hoops for my money.
Answer
Dear Friend!
Thank you very much for raising a very important and useful issue through your question.
As far as dividend returns are concerned there are three vital factors to be considered as follows:
- Percentage of net profits distributed as dividends by the company as a policy - good companies distribute 25–30%
- Dividend Yield - or simply the rate of dividend on your investment and
- Uninterrupted Dividend paying track-record of the company - you have hit the nail on its head when you mentioned sporadic - after all, dividends are the wages of an investor
Here I present 10 good and regular dividend-paying companies:
| Sl.No. | Company | % of Net profits Distributed as Dividends | Dividend Yield | Uninturrpted dividend paying track-record | Download Investment Research Report |
| 1 | NMDC Ltd. | 25-144% | 10.78% | 23 years | NMDC Ltd. |
| 2 | Larsen & Tubro Infotech Ltd. | 54-62% | 5.25% | -- | L&T Infotech Ltd. |
| 3 | Rural Electrification Corporation Ltd. | 20-30% | 12.86% | 19 years | Rural Electrification Corporation |
| 4 | Power Finance Corporation | 20-30% | 11.12% | 10 years | Power Finance Corporation |
| 5 | National Aluminum Company Limited | 30-70% | 3.85% | 18 years | National Aluminium Company Ltd. (NALCO) |
| 6 | Hindustan Zinc Limited | 18-22% | 1.61% | 19 years | Hindustan Zinc Ltd. (HZL) |
| 7 | SJVN Ltd. | 25-37% | 3.44% | 7 years | -- |
| 8 | MOIL Ltd. | 20-48% | 1.38% | 6 years | -- |
| 9 | ONGC Ltd. | 33-45% | 2.98% | 18 years | -- |
| 10 | Great Eastern Shipping Co. Ltd. | 33-78% | 3.81% | 20 years | -- |
