Dividend stocks are stocks of companies that make regular distributions to their shareholders, usually in the form of cash payments. Dividend can be considered to be an important factor as investors view it as a source of income from investing.
Coal India, REC, ONGC are among the top dividend paying PSU scrips in the last financial year (FY23), with yields of up to 8%, according to Axis Securities.
Dividend yield is the percentage a company pays out annually in dividends per rupee you invest. The primary reason to check dividend yield is to understand which stocks offer you the highest return on your dividend investment.
Here's how to calculate dividend yield:-
Dividend yield = Annual Dividends Paid Per Share / Price Per Share
Among the top dividend yield PSU stocks, four out of the fifteen companies belong to the financial sector, whereas only one firm is from the IT and industrial sector each.
Credit: Axis Securities
HUDCO, NHPC and SJVN have paid the lowest dividends in the past 12 months, at Rs 1.9, Rs 3.5 and Rs 1.7 respectively, with varying yields ranging from 4% to 6%.
According to the Axis Securities report, the utilities sector and industrial sector on average offer the lowest yields at 4.63% and 4% respectively. The metal and mining sector, comprising Coal India and NALCO, offers the highest yield at 8%.
Among the large cap companies, Vedanta, Hindustan Zinc are the highest dividend paying stocks. Vedanta's dividend yield came in at 26% for the last 12 months, while Hindustan Zinc has a dividend yield of 24%.
Credit: Axis Securities
REC, Sanofi India, Oil India are among the highest dividend paying midcap stocks. REC has a dividend yield of 10% in the last 12 months, while Sanofi and Oil India's dividend yield came in at 9% and 8% respectively.
Credit: Axis Securities
Credit: Axis Securities
Among small cap companies, TV Today Network, RSWM, IDFC, Forbes & Company were among the highest dividend paying stocks in FY23 with a dividend yield of up to 33%.
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