History is proof that high debt companies have fared miserably. That is why investors prefer debt-free companies as a safer investment alternative.
A debt free company has low interest outgo which allows it to retain more cash. This surplus cash can be used for reinvesting in the business, or the company could reward shareholders with a dividend.
For instance, check out the best dividend payout stocks in India and you'll notice that these companies have low or zero debt.
Since dividends interest you, we recommend you check out the below screener segments related to dividend:
Best Smallcap Dividend Growth Stocks in India
Best Midcap Dividend Yield Stocks in India