People often prefer Fixed Deposits (FDs) over stocks that offer dividends because FDs offer guaranteed returns at low risk, with fixed interest for a set period. Stock dividends, on the other hand, can be uncertain, as they depend on how well the company is doing and the market’s performance.
The average Fixed Deposit (FD) returns in India typically range between 5 percent to 7 percent per annum, depending on the bank, tenure, and prevailing interest rates set by the Reserve Bank of India (RBI).
Along with it, people feel FDs are safe because they are backed by government regulations, ensuring that the principal amount is secure. Stocks, however, can be riskier due to market ups and downs, and dividends can change or may not be paid at all depending on the company’s profit.
Considering everything Investing in PSU dividend-paying stocks can be a smart choice for those looking for potentially higher returns compared to Fixed Deposits (FDs). PSUs are often stable, government-backed companies, which provide a sense of security along with consistent dividend payouts. These stocks can offer attractive long-term growth opportunities, and their dividends tend to be higher than FD interest rates, especially over time.
The stocks to watch out
Coal India Ltd
Coal India Ltd is the largest coal producer in the world and a state-owned company. It is responsible for mining and supplying coal, primarily for thermal power generation, and plays a crucial role in India’s energy sector.
The company, with a market capitalization of Rs. 2,23,244.83 crores, opened at Rs. 354.05 in Thursday’s session, and it pays a dividend yield of 7.06 percent.
Bharat Petroleum Corporation Ltd
Bharat Petroleum Corporation Ltd (BPCL) is an Indian public-sector oil and gas company involved in the refining, distribution, and retailing of petroleum products and operates several refineries and has a strong presence in fuel distribution across India.
The company, with a market capitalization of Rs. 1,10,869.58 crores, opened at Rs. 251.00 in Thursday’s session, and it pays a dividend yield of 8.27 percent.
Chennai Petroleum Corporation Ltd
Chennai Petroleum Corporation Ltd (CPCL) is a leading oil refining company in India. It is a subsidiary of Indian Oil Corporation and is involved in refining crude oil into various petroleum products, serving in both domestic and international markets.
The company, with a market capitalization of Rs. 7,391.22 crores, opened at Rs. 479.30 in Wednesday’s session, and it pays a dividend yield of 10 percent.
Hindustan Zinc Limited
Hindustan Zinc Limited, a subsidiary of Vedanta Ltd, is a leading producer of zinc, silver, and lead in India. The company operates several mines and is recognized as one of the largest zinc producers globally, catering to a wide range of industries.
The company, with a market capitalization of Rs. 1,74,695.81 crores, opened at Rs. 411.55 in Wednesday’s session, and it pays a dividend yield of 7.07 percent.
Indian Oil Corporation Ltd
Indian Oil Corporation Ltd (IOC) is India’s largest commercial enterprise and a major player in the oil and gas sector. It is involved in the refining, distribution, and marketing of petroleum products, including fuels, lubricants, and petrochemicals.
The company, with a market capitalization of Rs. 1,69,313.65 crores, opened at Rs. 117.25 in Wednesday’s session, and it pays a dividend yield of 10 percent.
Written by Sridhar J
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