Tata's top 4 dividend yielding stocks: are they in Your portfolio?

Tata Group: A Legacy of 150 Years

Let's take a look at the companies under the famous Tata Group, which has been around for over 150 years. They are experienced, have a great track record, and strong management, and are known for their ethical practices and good governance.

Top Tata Companies with High Dividend Yield

These are the top Tata companies with the highest dividend yield. According to data sourced from Ace Equity, there are 27 listed companies under the Tata Group as of May 13, 2024. Out of these, 18 companies have a dividend history of 3 years or more.

Focus on Durability and Value

Here are the top 4 companies from the Tata Group with a dividend yield of more than 1%. However, when considering adding a dividend stock, an investor must not only look at the 'high dividend yield' factor but also consider if a stock's dividend is durable and if the stock is undervalued. This helps eliminate the price risk of buying an overvalued stock.

Top 4 Tata Group Companies with Highest Dividend Yield as of May 13, 2024

1 Tata Steel

Established in the year 1907, the company has a presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. The company offers a broad range of steel products including a portfolio of high-value-added downstream products such as hot rolled, cold rolled, coated steel, rebars, wire rods, tubes and wires.

The company has a strong network of 250+ distributors and 20,400+ dealers. 100% of the fleet is covered by vehicle tracking, and approximately 95% of districts in India are covered. The latest dividend yield for Tata Steel is 2.24%, with a 3-year average dividend payout ratio of 35.2% and a 3-year average dividend yield of 3.47%.

2 Tata Consultancy Services

TCS offers a consulting-led, cognitive-powered, integrated portfolio of IT, business, and technology services, as well as engineering. This is delivered through its unique location-independent agile delivery model, recognized as a benchmark of excellence in software development. TCS has a latest dividend yield of 1.42%, with an average 3-year dividend payout ratio of 66.2% and an average 3-year dividend yield of 1.98%.

3 Tata Communications Ltd.

With over 1600 telecom partnerships, Tata Communications' network manages 1 out of every 10 international calls and connects more than 70% of the world's mobile carriers. Tata Communications has the latest dividend yield of 1.22%, with an average 3-year dividend payout ratio of 40.8% and an average 3-year dividend yield of 1.57%.

4 Tata Chemicals

Established in 1939, it is the third-largest producer of soda ash in the world, with manufacturing facilities spread across four continents. It also has the largest saltworks in Asia and is the 6th largest sodium bicarbonate manufacturer in the world. Its innovations in Specialty Chemistry have led to the establishment of Tata NQ -- India’s first and only nutritional science business.