When it comes to investing, there’s always a debate about which category of stocks is the most rewarding. While large-cap stocks are seen as safe and small-cap stocks as aggressive, there’s a sweet middle ground – mid-cap dividend stocks. These stocks not only provide the stability of consistent dividends but also offer the potential for higher returns due to their growth-oriented nature.
Mid-cap stocks are companies with market capitalizations ranging between ₹5,000 crores and ₹20,000 crores. What makes them interesting is their unique position – not too big to be fully saturated and not too small to lack resources. They’re often growing companies with innovative strategies, and when these companies pay dividends, it’s like getting the best of both worlds: growth and income.
In this blog, I’ll walk you through 20 mid-cap dividend stocks in India for 2024 that I believe have strong potential. Based on my own research and observations, these stocks can help you build a solid, diversified portfolio that’s ready for the long haul.
Why Consider Mid-Cap Dividend Stocks?
Before jumping into the list, let’s talk about why mid-cap dividend stocks are worth a second look:
Steady Growth Potential: Mid-cap companies are still in the growth phase, which means there’s room for their stock prices to rise over time.
Better Dividend Yields: Many mid-cap companies pay dividends that are more attractive than their large-cap counterparts. This makes them great for generating passive income.
Diversification: By investing in mid-caps, you can spread your portfolio risk across different industries and reduce dependency on one sector.
Access to Future Leaders: Some of today’s market giants were mid-caps a decade ago. Investing in mid-caps gives you the chance to get in early on tomorrow’s blue-chip companies.
Top 20 Mid-Cap Dividend Stocks to Buy in India for 2024
Here’s a carefully curated list of mid-cap dividend stocks that, in my opinion, are worth considering. These stocks have been selected based on their dividend history, financial performance, and growth potential:
State Bank of India (SBI) – A banking powerhouse offering a dividend yield of 6-7%, making it a consistent income generator.
ICICI Bank – Known for its stability, ICICI Bank offers a dividend yield of around 3.65%.
Tata Motors – A solid player in the auto sector with a dividend yield of 1.5%.
Tata Steel – A key name in the metals industry with a dividend yield of 3.3%.
Bharat Petroleum Corporation Limited (BPCL) – Offers a dividend yield of 2.9%, backed by a strong position in the energy sector.
Hindustan Petroleum Corporation Limited (HPCL) – A reliable stock with a dividend yield of 2.5%.
HDFC Bank – Known for its financial soundness, HDFC Bank has a dividend yield of 0.7%.
Reliance Industries Limited (RIL) – A diversified giant offering a dividend yield of 1.2%.
Axis Bank – Another banking favorite with a dividend yield of 1.1%.
Larsen & Toubro (L&T) – A leader in infrastructure and construction with a yield of 1.6%.
Adani Ports & Special Economic Zone Ltd (APSEZ) – Offers a 2.5% yield, backed by its strategic position in logistics.
Shree Cements Ltd – Known for its reliability, with a dividend yield of 1.4%.
Sun Pharmaceutical Industries – A healthcare leader with a yield of 1.1%.
Oil & Natural Gas Corporation Ltd (ONGC) – A key player in the energy sector with a yield of 1.7%.
Coal India Ltd – Known for consistent payouts, offering a dividend yield of 1.7%.
Tech Mahindra Ltd – A strong IT player with a yield of 1.3%.
Infosys Ltd – A tech giant offering a yield of 0.5%.
Dr. Reddy’s Laboratories Ltd – A pharma leader with a yield of 0.7%.
Wipro Ltd – An IT major with a dividend yield of 1.1%.
Bajaj Finserv Ltd – A diversified financial services provider offering a yield of 0.7%.
How to Approach Investing in Mid-Cap Dividend Stocks
Investing in mid-cap dividend stocks isn’t just about picking names from a list. Here are a few things I’d suggest you keep in mind:
Do Your Homework: Look into the financials, management quality, and future prospects of each company before investing.
Diversify: Don’t put all your eggs in one basket. Spread your investments across sectors to minimize risks.
Think Long-Term: Mid-cap stocks might take time to show results. Be patient and think of them as part of a long-term strategy.
Monitor Regularly: Keep an eye on dividend payouts and the overall performance of the companies in your portfolio.
Conclusion
Mid-cap dividend stocks offer a unique blend of stability and growth potential. Whether you’re looking to generate consistent income or tap into the growth of emerging companies, these stocks can be a valuable addition to your portfolio.
The 20 stocks I’ve listed, including SBI, Tata Motors, and Sun Pharma, are based on my personal research. While I believe these are strong contenders, I’d encourage you to do your own due diligence before making any investment decisions.
Investing is always about balancing risk and reward. With a thoughtful approach, mid-cap dividend stocks can help you achieve your financial goals for 2024 and beyond. Happy investing!