Investors are drawn to companies with high dividend yields because they ensure tax-free income, and they buy in such stocks only for the dividend yield based on their investments.
A company’s dividend payments may be viewed as a sign of stability and perspective growth, which may draw investors and increase the value of the shares.
Here is a High dividend mid-cap stock.
Power Finance Corporation Ltd
Power Finance Corporation (PFC) is a financial institution dedicated to power sector financing, Company provides financial products and services for various power projects in the generation, transmission, and distribution sectors.
The company belongs to the Mid-cap category with a market capitalization of Rs 52,445 crores. Shares were trading at Rs 198.75 a share on June 16, down 0.67 percent from the previous close price.
The company recorded a 6.62 percent dividend yield for FY23, and its price-to-earnings ratio is 3.33, which is lower than the industry P/E of 11.33, indicating that the stock is trading at a lower price and has an EPS of 60.18.
For FY23, Company board members recommended a final dividend of Rs 4.50 per share having a face value of Rs10 each. In addition to the interim dividend of Rs 8.75 per share.
Revenue climbed by 2 percent yearly, rising from Rs 76,261 crore in FY 21-22 to Rs 77,568 crore in FY 22-23. Net profit has increased by 13 percent, from Rs18,790 crore to Rs 21,178 crore.
In recent years, profitability ratios have improved. For FY23, ROE is 18.88 percent, ROCE is 65.09 percent, and the debt-to-equity ratio is 2.83.
Similarly, the operating margin is 94.77 percent and the net profit margin is 27.30 percent.
As per the shareholding pattern, promoters of the company hold a 55.99 percent stake,Foreign Institutional Investors have a 16.49 and Domestic institutional investors have 16.67percent stake in the company for FY 22-23.
Written by Omkar C
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