Investors are attracted to high dividend offering stocks as they assure them a tax-free income on hand, and investors invest in those stocks to gain only dividend yield based on their investments.
Dividend payments made by a company could be considered taken as a sign of stability and potential growth, which can attract investors and boost the stock price.
Here are 5 High dividends-paying PSU stocks
Steel Authority of India (SAIL) is engaged in manufacturing a wide variety of steel products in India. And the company is the largest state-owned iron ore producer.
The company’s shares were trading at 83.60 per share on June 2nd and it is a Mid-cap company with a market valuation of 34,531 crores. As of FY23, the company’s dividend yield was 10.6 percent. The board of directors has also proposed a final dividend of Rs 0.50 per share for FY23.
As per company financials, operating revenue slightly increased from ₹ 1,03,476 crores during FY 21-22 to ₹ 1,04,447 crores in FY 22-23. Keeping the same time frame, PAT numbers have significantly declined by 87 percent, from ₹ 11,825 crores to ₹ 1,530 crores.
NMDC Limited (NMDC)was established in 1958 and is engaged in ore production and exporting. The Company operates in two business segments iron ore and other minerals and services. NMDC is the largest iron ore manufacturer in India accounting for 18% of the total domestic production.
The company’s shares were trading at 108.90 per share on June 2nd and it is a Mid-cap company with a market valuation of 31,914 crores. The company has a dividend yield of 9.9 percent as of FY23. The company board has recommended Rs 2.85 per share as the final dividend for FY23.
According to the company’s financials, operating revenues fell by 32% from 25,881 crores in FY 21-22 to 17,666 crores in FY 22-23. PAT has declined by 41 percent over the same time period, from 9,391 crores to 5,537 crores.
Indian Oil Corpn. Ltd. (IOCL) is involved in the petroleum hydrocarbon value chain, from refining to petrochemical products. The company holds the country’s largest and most extensive network of gasoline and diesel stations. It possesses 32% of the total refining capacity of India. The company also has a presence in Sri Lanka, Mauritius, UAE, Singapore, Sweden, USA, and the Netherlands through its subsidiaries.
The company’s shares were trading at 89.80 per share on June 2nd and it is a Large-cap company with a market valuation of 1,26,808 crores. As of FY23, the company’s dividend yield was 9.5 percent. The board of directors has proposed a final dividend of Rs 3 per share for FY23.
According to the company’s financials, operating revenues climbed by 43 percent from 5,89,335 crores in FY 21-22 to 8,41,755 crores in FY 22-23. In contrast, PAT has declined by 56 percent over the same time period, from 24,491 crores to 10,842 crores.
Rural Electrification Corporation Limited (REC), is involved to provide financial support and promote rural electrification projects all over the country. It provides and sponsorship for financial assistance to State Electricity Boards and Rural Electric Cooperatives for rural electrification projects.
The company’s shares were trading at 144.25 per share on June 2nd and it is a Mid-cap company with a market valuation of 37,984 crores. The company has a dividend yield of 8.3 percent as of FY23. The company board has also recommended Rs 13.05 per share as the final dividend for FY23.
According to the company’s financials, operating revenues climbed by 10 percent from 35,552 crores in FY 21-22 to 39,269 crores in FY 22-23. PAT has significantly increased by 20 percent over the same time period, from 8,380 crores to 10,047 crores.
Power Trading Corporation of India Limited(PTC) was established in 1999 and is engaged in the power trading business. It is promoted by Power Grid Corporation of India Limited, NTPC Limited, Power Finance Corporation Limited, and NHPC Limited.
The company’s shares were trading at 101.80 per share on June 2nd and it is a Small-cap company with a market valuation of 3,013 crores. As of FY23, the company’s dividend yield was 7.8 percent. The board of directors has also proposed a final dividend of Rs 1 per share for FY23.
According to the company’s financials, operating revenues declined by 5.2 percent from 16,856 crores in FY 21-22 to 15,970 crores in FY 22-23. Over the same time period, PAT decreased from 552 crores to 509 crores.
Written by Omkar C
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