Last Update: February 18, 2023, 17:43 IST
Vedanta’s annual dividend yield is as high as 20%, which is higher than the returns on traditional investments.
As indicated earlier, Vedanta shares trade at four times ex-dividend post the start of FY 2022-23.
Mining major Vedanta has given a significant dividend yield of nearly 20% to its shareholders since April 2022. As the financial year 2023 is about to end, the company has so far declared four interim dividends for shareholders in the current financial year, amounting to a total of Rs 81 per share.
If we compare the total dividend paid in the financial year 2022-2023, Vedanta’s annual dividend yield is equal to 20%, which is comparable to the returns on traditional investments like bank fixed deposits and public provident funds or employees provident funds. More than. ,
Vedanta declared its final and fourth interim dividend at Rs 12.5 per share at the rate of Re 1 per share on January 27. 31.50 per share in May last year in FY 2022-23.
On Friday, February 17, shares of the Mumbai-headquartered mining major closed at Rs 313.25 per share, down 0.33 per cent. As per the current market price of the stock, the net dividend yield for this financial year is over 25%. Compared to the share price at the beginning of the financial year in April 2022, when it was at around Rs 405 per piece level, the annualized dividend yield stood at 20%.
Compared to risk-free investment options like PPF (Public Provident Fund), Employees’ Provident Fund (EPF) and bank fixed deposit (FD) interest rates, the stock of the mining company has provided more than double the returns.
In general, investing in long-term equity mutual funds gives returns of around 12-14% and now Vedanta shares have also surpassed the returns on mutual fund investments.
PPF interest rates, which are paid quarterly, remain constant at 7.10% per annum. Similarly, the EPF interest rate remains unchanged at 8.10% in FY2023, while bank FD rates increase to 6.50% in FY2022-23.
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