By Aditya Raghunath
Investing.com — Investing in dividend-paying companies is always an attractive option. These stocks are generally well established and generate a steady stream of cash flows. Dividends are part of a companies profits that are paid to shareholders. The payout can be in the form of cash or stock or a mix of both cash and stock. It also suggests that dividend-paying companies need to be consistently profitable.
Dividend investing is a strategy that allows investors to derive a steady source of predictable income from quarterly payouts as well as benefit from share price appreciation over the long term.
One such dividend-paying company on the NSE is GAIL Ltd (NS:). This stock pays a dividend of Rs 5 per share on an annual basis indicating a forward yield of 3.6% given its share price of Rs 139.85. So, a Rs 10,000 investment in Gail India stock will help the investor generate Rs 360 in annual dividends. Further, the stock has gained over 40% in the last five years and is up 12x since it went public back in July 2001.
Gail India is a processing and distribution company. It operates through transmission services, natural gas marketing, petrochemicals, LPG, and other liquid hydrocarbons.