After the company is done performing its operations throughout the year, it sometimes retains the money (if in surplus) or pays out a part of the profits to its existing shareholders. The portion let out to the shareholders is known as a ‘Dividend’. They may be paid primarily in cash, as well as in the form of securities or any other instruments.
Listed below are some of the high dividend-paying stocks in India during FY22-23:
Vedanta Ltd
Vedanta Ltd is engaged in the process of exploring, extracting and processing minerals & oil and gas. It focuses on zinc, lead, silver, aluminum, copper, iron ore, oil and gas, and commercial power.
Apart from the domestic operations within the country, it also has a presence internationally in countries like South Africa, Namibia, Ireland, and Australia. The company has five segments such as oil and gas, aluminum, copper, iron ore, and power.
Currently trading at a price of Rs 278, the market capitalization of the company is Rs 103,449 crores. During FY22-23, the company has declared a total dividend of Rs 101.50 on a face value of Rs 1, and as per the dividend paid till date, the company gave a dividend yield of 36.5 percent.
Rural Electrification Corporation Ltd
Based in New Delhi, Rural Electrification Corporation (REC) is a government agency with the main objective to finance as well as promote the power sector projects all over the country.
The company provides loan assistance to various State Power Utilities, Central Power Sector Utilities, Private Sector Project Developers, and State Governments. Agency’s assets are been managed by its board of directors.
Currently trading at a price of Rs 123, the market capitalization of the company is Rs 32,414 crores. During FY22-23, the company has declared a total dividend of Rs 8.25 on a face value of Rs 10, and as per the dividend paid till date, the company gave a dividend yield of 6.70 percent.
National Mineral Development Corporation Ltd
NMDC Ltd is engaged in the mining of a wide range of minerals, including iron ore, copper, sponge iron, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands.
The company also owns a windmill project in Karnataka. Iron ore accounts for most of its revenue. The Indian government owns a majority share of the company.
Currently trading at a price of Rs 112, the market capitalization of the company is Rs 32,414 crores. During F22-23, the company has declared a total dividend of Rs 3.75 on a face value of Rs 1, and as per the dividend paid till date, the company gave a dividend yield of 3.35 percent.
Written by Amit Madnani
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