Dividend paying during the result season becomes an attraction for stock shareholders because it is an additional income that a long-term investor receives over short-term investors or traders. This allows the shareholder to hold on to his faith even when the market is in the grip of a downturn. Recently, REC Limited has announced 5 per equity interim dividend to its shareholders for the financial year 2022-23. As the shares of REC are at a price of approx. 96.50 each today. Its dividend yield is more than 5 per cent, an average bank fixed deposit yield over a short time horizon or one year. In fact, if we go to the annual dividend yield of REC Ltd., we will find that the Navratna NBFC has paid a total dividend of Rs. 13.30 per equity share in FY12, which is much higher than the average bank fixed deposit interest rate of 6 per cent.
Here we list 5 stocks of Indians Share Market Those whose annual dividend income is much higher than the bank fixed deposit interest rate or bank FD rates:
1]SAIL or Steel Authority of India Limited: This metal PSU has paid a total dividend of 8.75 per equity share in FY22. SAIL has paid dividend on three occasions while paying interim dividend for the financial year 2012 4 more per share in November 2021 2.50 in March 2022. Navratna Company. has paid the final dividend of 2.25 per equity share. SAIL share price is around today 82 i.e. the current dividend yield of metal PSUs is around 10.70, which is much higher than long term debt mutual fund returns.
2]Power Finance Corporation Limited or PFC: PFC shares are down nearly 22 per cent from their 52-week high 142.30 each level. PSU shares have paid dividend of 12.25 per equity share in the financial year 2021-22. It paid dividends to its shareholders on four occasions. It paid interim dividend of 2.50, 2.50 more 6.0 per equity share in August 2021, November 2021 and February 2022 respectively. announced it 1.25 Final Dividend for FY22 also. As PFC share price today is around 110 each, up from its current annual dividend yield of 11 per cent for FY22.
3]PTC India: This is another state owned company which has paid dividend. 7.50 per equity share during FY22. It paid interim dividend of 2 per equity share and final dividend of 5.50 per equity share. Since PTC India shares are available here 71.25, the current annual dividend yield of this state-owned company is around 10.50 per cent, which is much higher than the average bank fixed deposit interest rate.
4]Coal India Limited: This state-owned company paid dividends to the tune of 17 per equity share to its shareholders in FY22. It paid two interim dividends of 9 more 5 per equity share to its eligible shareholders in December 2021 and February 2022. Later, it declared the final dividend of 3 per equity share in August 2022. Coal India Limited share price is around today 240 means its current annual dividend yield is over 7 per cent and it has been able to beat bank FD returns with a decent margin.
5]Indian Oil Corporation Limited or IOCL: This Navratna company has given huge dividend of 11.40 per equity share in the financial year 2021-22. State-owned Navratna Company paid two interim dividends 5 per share and 4 per share in November 2011 and February 2022 respectively. This. paid the final dividend of 2.40 in FY22 also. IOCL share price is around today 68 means IOCL’s annual dividend yield for FY22 is around 16.75 per cent.
However, stock investors are advised to understand that dividend payment of a company is purely a management decision and the pattern of paying dividend or bonus may change with the change of financial year. Hence, it should not be the sole criterion for stock selection while selecting a stock for investment.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.