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  • Aug 8, 2023 - 3 High Dividend Midcap Stocks Up More Than 50% in 2023

3 High Dividend Midcap Stocks Up More Than 50% in 2023

Aug 8, 2023

3 High Dividend Midcap Stocks Up More Than 50% in 2023

For years, investors have looked at dividend paying stocks as an answer for steady income.

By providing much-needed income that other types of assets have lacked, dividend stocks have become the go-to investment.

All else being equal, a company with a high dividend payout ratio is more stable that a similarly sized competitor with a lower dividend payout.

Also, the benefit of buying dividend stocks is that the uncertainty of returns becomes low because the company pays a dividend at regular intervals.

Interest in dividend paying stocks shot up as the market turned volatile after 2021. Over the last two years dividend stocks have received the attention they deserved. With billions of dollars pouring into dividend stocks, the demand for these stocks has increased significantly.

In the stock market, it's widely accepted that midcap stocks usually have a good growth potential. As midcaps are smaller than largecaps have a relatively higher growth potential. This makes them attractive to growth investors.

Midcaps also have the advantage of being more stable than smallcaps. This relatively lower volatility makes them attractive to investors who desire growth along with dividends but who do don't want to take the risk associated with smallcaps.

With that in mind, here are 3 stocks that are among the biggest dividend paying midcaps and have risen more than 50% this year.

# Polycab India

Polycab India is engaged in the business of manufacturing and selling wires and cables and fast moving electrical goods 'FMEG'. It sells its products under the POLYCAB brand.

Polycab's share price has risen 81.7% in 2023.

Apart from wires and cables, the company manufactures and sells FMEG products such as electric fans, LED lighting and luminaires, switches and switchgear, solar products and conduits & accessories.

The promoters collectively have more than four decades of experience among them. It's considered to be among India's most fundamentally strong mid-sized manufacturing companies.

The company has a listing history since February 2019. Since then it has paid 5 dividends. It's average payout ratio has been 17.2%.

In FY23 it paid a dividend of Rs 20 per share. It's current dividend yield is 0.4%.

To know more, check out Polycab India company fact sheet and its latest quarterly results.

# SJVN

SJVN, formerly known as Sutlej Jal Vidyut Nigam, is an Indian public sector undertaking involved in hydroelectric power generation and transmission.

SJVN's share price has risen 61.2% in 2023.

The company was incorporated in 1988 as Nathpa Jhakri Power Corporation, a joint venture between the Government of India and the Government of Himachal Pradesh.

The company has a total operating hydropower capacity of 1,912 MW through its two hydropower plants: Nathpa Jhakri and Rampur. In addition, it has an installed capacity of 97.6 MW of wind power and 81.9 MW of solar power.

SJVN is presently implementing or operating power projects in Himachal Pradesh, Uttarakhand, Bihar, Maharashtra, Uttar Pradesh, Punjab, Gujarat, Arunachal Pradesh, Rajasthan, Assam, Odisha, Mizoram, and Madhya Pradesh in India.

Apart from India, SJVN also has under-construction hydroelectric projects in Nepal and Bhutan.

The company has a listing history since May 2010. Since then it has paid 23 dividends. It's average payout ratio over the last 5 years has been 51.1%.

In FY23 it paid a dividend of Rs 1.8 per share. It's current dividend yield is 3.2%.

To know more about the company, check out the SJVN fact sheet and quarterly results on our website.

# IRFC

Indian Railway Finance Corporation (IRFC) is a public sector undertaking (PSU). It's engaged in the business of financing the acquisition/creation of assets which are then leased out to the Indian Railways or any entity under the Ministry of Railways.

IRFC's share price has risen 54.6% in 2023.

Its only operating segment is leasing and finance. The company generates its revenue from lease income. Its sole objective is to raise money from the debt capital markets to part-finance the plan outlay of Indian Railways.

These funds are used predominantly for the acquisition of new rolling stock assets. These are then leased to Indian Railways for developing railway infrastructure.

The company has a listing history since January 2021. Since then it has paid 5 dividends. It's average payout ratio has been 20%.

In FY23 it paid a dividend of Rs 1.5 per share. It's current dividend yield is 3%.

For more details, see the IRFC company fact sheet and quarterly results.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Safe Stocks to Ride India's Lithium Megatrend

Lithium is the new oil. It is the key component of electric batteries.

There is a huge demand for electric batteries coming from the EV industry, large data centres, telecom companies, railways, power grid companies, and many other places.

So, in the coming years and decades, we could possibly see a sharp rally in the stocks of electric battery making companies.

If you're an investor, then you simply cannot ignore this opportunity.

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Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

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