Experts suggest buying 5 dividend stocks before the year 2023 concludes. Here’s why.

As the rollercoaster ride of 2023 winds down, here’s a hot tip from the experts: consider cosying up to some dividend stocks before the curtain falls. But why, you ask? Well, let’s break it down in simple terms.

The Lowdown on Dividend Stocks

Picture this: dividend stocks are like a gift that keeps on giving. They pay you a slice of the company’s earnings, providing a steady income. It’s like a financial comfort blanket, especially when the market is playing hard to get. Plus, these stocks can throw in some extra perks—think tax benefits and a nifty hedge against that sneaky inflation bug.

Not all dividend stocks are cut from the same cloth. There’s a whole checklist—dividend yield, payout ratio, growth rates, earnings whispers, and more—that savvy investors swear by before diving in.

Meet the Fab Five Dividend Stars for 2023

Wondering how to buy stocks of the best five dividend paying companies? Then, let’s get to the juicy part. Here are the top five Indian dividend stocks that experts are buzzing about:

1. Vedanta Ltd. (VEDL)

Vedanta isn’t just a name; it’s a force in natural resources. With a whopping 29.22% dividend yield, it’s like the heavyweight champion of dividends. They’re not stingy either—98.6% of earnings return to you. And get this: the dividend growth rate went from a quiet Rs. 17.7 in 2020 to a bold Rs. 69 in 2021. Vedanta is flexing its financial muscles.

But wait, there’s more! Vedanta’s earnings growth is no slouch, with a 25.4% compounded annual growth rate (CAGR) over the last five years. The return on equity (ROE) had a glow-up, jumping from 9.9% in 2019 to an impressive 23.4% in 2021. And here’s the kicker: trading at a PE ratio 9.9, Vedanta Ltd. is like a discounted ticket to a blockbuster show. With plans to increase production and diversify, it’s like getting a sneak peek into a future blockbuster.

2. Hindustan Zinc Ltd. (HZL)

Imagine being India’s largest producer of zinc and lead—that’s Hindustan Zinc for you. A solid 10.11% dividend yield and a 100% payout ratio? That’s the kind of reliability we all need. With plans to expand and enhance, Hindustan Zinc is the steadfast sidekick in your dividend journey.

But there’s more to this story: a robust earnings growth boasting a CAGR of 12.2% over the last five years. The return on equity (ROE) plays a hero, too, standing tall at 24.9% in 2021. And guess what? Trading at a PE ratio of 12.7, below the industry average, Hindustan Zinc Ltd. is like finding treasure in an unexpected place. It’s not just about zinc and lead; it’s about a reliable companion in the investment journey.

3. Coal India Ltd. (COALINDIA)

Coal India is a powerhouse, literally. The world’s largest coal producer is not playing around with a 9.41% dividend yield and a generous 117.6% payout ratio. The dividend growth rate? An astonishing 33.3%. With eyes set on the future—renewable energy projects, anyone?—Coal India is carving its path in the energy landscape.

But hold your horses; there’s more to unfold before you start searching for how to buy stocks. Coal India promises stable earnings growth with a 7.6% CAGR over the last five years. The return on equity (ROE) is a showstopper, soaring from 52.9% in 2019 to 66.7% in 2021. And here’s the kicker: trading at a PE ratio of 7.4, below the industry average, Coal India Ltd. is like an untapped gold mine. With plans for renewable energy and diversified revenue, it’s not just about coal; it’s about a dynamo in the making.

4. TV Today Network Ltd. (TVTODAY)

TV Today Network isn’t just about news; it’s making headlines with a staggering 33.11% dividend yield. They’re handing out cash left and right with a 98.9% payout ratio. And that growth rate? Hold onto your seat—2820%! With robust earnings growth, demonstrated by a CAGR of 28.4% over the last five years, TV Today Network Ltd. showcases resilience and innovation in the competitive media landscape. The company’s improved return on equity (ROE), climbing from 10.8% in 2019 to 28.9% in 2021, underscores the effective utilization of shareholder funds.

With a PE ratio of 8.9, below the industry average of 18.7, TV Today Network Ltd. appears undervalued, presenting an attractive entry point for investors. The company’s promising future outlook, marked by plans to expand its reach, launch new channels, and leverage its digital platforms, positions TV Today Network Ltd. as a compelling choice for those seeking dividends and potential growth in the media sector.

5. Bhansali Engineering Polymers Ltd. (BEPL)

Bhansali Engineering Polymers is an artisan in the polymer world. An 8.33% dividend yield and a moderate 25.9% payout ratio—it’s a balanced act. But don’t let that fool you; the growth rate is a solid 100%. With dreams of expanding and diving into new markets, BEPL is the prodigy in the polymer play.

But here’s the real deal: an impressive earnings growth boasting a compounded annual growth rate (CAGR) of 47.8% over the last five years. The return on equity (ROE) has significantly improved, rising from 15.4% in 2019 to 36.8% in 2021. With a PE ratio of 14.4, below the industry average, Bhansali Engineering Polymers Ltd. appears undervalued, providing an attractive entry point for investors. The company’s optimistic future outlook, underscored by plans to increase production capacity, diversify its product portfolio, and explore new markets, positions Bhansali Engineering Polymers Ltd. as a promising choice for those seeking dividends and potential long-term gains in the polymer sector.

Conclusion

So, there you have it—your backstage pass to the dividend stars of 2023. Vedanta, Hindustan Zinc, Coal India, TV Today Network, and Bhansali Engineering Polymers are all waving at you from the financial red carpet. These stocks aren’t just numbers on a screen; they’re your potential partners in financial success. We hope your queries regarding how to buy stocks and which ones to buy before 2023 ends have been resolved through this article.

But, as we bid farewell to 2023, consider these stocks as your companions in the unpredictable world of investments. Remember, it’s your money dance—so do a little jig of research before diving in. Happy investing!