Investing in stocks is considered to be risky by many investors. As a result, they tend to park a majority of their money in a fixed deposit (FD), Employee Provident Fund (PF) and Public Provident Fund (PPF). FD provides an interest of approximately 6.50 percent, EPF interest rate has remained steady at 8.10 percent and PPF interest rate is at 7.10 percent.
However, a few stocks have given dividends that beat the returns of FD, EPF and PPF in the past year:
Coal India Limited
Coal India is a state-owned Maharatna company engaged in the mining and production of coal. In addition, it manages coal washeries. It is a large-cap company with a market capitalization of ₹ 1,31,913 crores.
The company has a high dividend yield of 10.86 percent. So far, during the current financial year, Coal India has already declared dividends of ₹ 20.25 per share.
| Effective/Ex-date | Dividend Type | Dividend (face value Dividend amount (₹)of ₹ 10) |
| 11-08-2022 | Final | 30% of ₹ 10 3.00 |
| 15-11-2022 | Interim | 150% of ₹ 10 15.00 |
| 08-02-2023 | Intrim | 52.5% of ₹ 10 5.25 |
If investors would have invested in the shares of Coal India a year ago, they would have bought the shares at ₹ 160 levels. Therefore, they have already made returns of 12.66 percent per share (20.25*100/160) due to dividends. In addition to that, their capital has appreciated by 34.03 percent as the shares of Coal India are currently at ₹ 214.45 apiece.
Vedanta Limited
Vedanta is engaged in exploring, extracting and processing minerals and oil & gas. Its other businesses include commercial power generation, steel manufacturing & port operations in India and manufacturing of glass substrates in South Korea and Taiwan. It is a large-cap company with a market capitalization of ₹ 1,14,256 crores and its shares were trading at ₹ 303.80 apiece on Wednesday’s early trades.
The company has a very high dividend yield of 29.46 percent. So far during the current financial year, Vedanta has already declared dividends of ₹ 81 per share.
| Effective/Ex-date | Dividend Type | Dividend (face value Dividend amount (₹)of ₹ 1) |
| 06-05-2022 | Interim | 3150% of ₹ 1 31.50 |
| 26-07-2022 | Interim | 1950% of ₹ 1 19.50 |
| 29-11-2022 | Interim | 1750% of ₹ 1 17.50 |
| 03-02-2023 | Interim | 1250% of ₹ 1 12.50 |
If investors would have invested in the shares of Vedanta a year ago, they would have already made returns of 23.14 percent per share (81*100/350) due to dividends.
REC Limited
REC is a Central Public Sector Undertaking under the aegis of the Ministry of Power. It is involved in financing projects in the complete power sector value chain from generation to distribution. REC is a mid-cap company with a market capitalization of ₹ 30,006 crores.
The company has a high dividend yield of 21.11 percent. So far, during the current financial year, REC has already declared dividends of ₹ 20.25 per share.
| Effective/Ex-date | Dividend Type | Dividend (face value Dividend amount (₹)of ₹ 10) |
| 12-07-2022 | Final | 48% of ₹ 10 4.80 |
| 07-11-2022 | Interim | 50% of ₹ 10 5.00 |
| 09-02-2023 | Interim | 32.5% of ₹ 10 3.25 |
If investors would have invested in the shares of REC a year ago, they would have bought the shares at ₹ 93 levels. Therefore, they have already made returns of 14.03 percent per share (13.05*100/93) due to dividends. In addition to that, their capital has appreciated by 20.68 percent as the shares of REC are currently at ₹ 112.00 apiece.
Written by Simran Bafna
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