Investors seeking attractive dividend yields should pay attention to these top 10 PSU (Public Sector Undertaking) stocks, each offering significant dividends over the past year. These companies have showcased not only strong fundamentals but also a commitment to rewarding their shareholders with substantial dividend payouts. By considering these stocks, investors can potentially bolster their dividend income.
Introduction: Dividends have long been favored by investors as a means of generating consistent income from their investment portfolios. When it comes to PSU stocks, several key players have emerged, demonstrating their financial strength and dedication to delivering substantial dividends to their shareholders.
According to Religare Brokerage, dividend yield plays a crucial role in evaluating dividend-paying stocks. It serves as an indicator of the returns that investors can expect to earn from their equity investments.
In this article, we will explore the top 10 PSU stocks that have stood out for their attractive dividend yields and impressive dividends paid in the most recent 12 months.
Top 10 PSU Stocks with High Dividend Yields:
- Coal India: Leading the list is Coal India, the largest government-backed coal producer, with an impressive dividend yield of 7.7%. In FY23, the company distributed dividends of Rs 24.3 per share, a significant increase from the previous year’s Rs 17 per share. The price-to-earnings (P/E) ratio stands at 8.9x.
- Oil India: Under the oil & gas segment, Oil India has demonstrated a dividend yield of 6.7%. The company distributed dividends of Rs 20 per share in FY23, up from Rs 14.3 per share in FY22, with a P/E ratio of 4x.
- ONGC: The largest oil and gas explorer in India, ONGC, boasts a dividend yield of 6%. In FY23, it paid dividends totaling Rs 11.3 per share, a slight increase from Rs 10.5 per share in FY22. The current P/E ratio is 4.9x.
- PTC India: PTC India, a power trading solutions provider, offers a dividend yield of 5.6%. The company maintained a consistent dividend of Rs 7.8 per share in both FY23 and FY22, with a P/E ratio of 6.8x.
- Power Grid Corporation of India: As a power transmission company, Power Grid distributed dividends of Rs 10.7 per share in FY23, although lower than the payout in FY22. It features a high dividend yield of 5.3%, with a P/E ratio of approximately 10.3x.
- Petronet LNG: With a 5% dividend yield, Petronet LNG distributed dividends of Rs 10.6 per share in FY23, a marginal increase from Rs 10 per share in FY22. The stock has the highest P/E ratio in the top 10 list, at 10.6x.
- Gujarat State Fertilizers & Chemicals: This Indian chemicals and fertilizers manufacturer paid dividends of Rs 10 per share in FY23, significantly higher than the dividend payout of Rs 2.5 per share in FY22. It offers a 5% dividend yield and has a P/E ratio of 3.7x.
- National Aluminium Company (NALCO): Another metal company, NALCO, features a 4.9% dividend yield. In FY23, the dividend payout was lower at Rs 4.5 per share compared to Rs 6.5 per share in FY22. It maintains a P/E ratio of 9.3x.
- Chennai Petroleum Corporation: This chemical stock offers a 4.7% dividend yield. Notably, its dividend payout surged to Rs 27 per share in FY23, a substantial increase from the Rs 2 per share paid in FY22. The stock has the lowest P/E ratio among the top 10 at 1x.
- REC Ltd: As a financial services provider to power sector companies, REC Ltd distributed dividends of Rs 12.6 per share in FY23, down from Rs 15.3 per share in FY22. It provides a 4.4% dividend yield and has a P/E ratio of 2.8x.
Conclusion: Dividends are a vital component of the returns generated from equity investments. The top 10 PSU stocks highlighted in this article not only exhibit commendable fundamentals but also reward their investors with substantial dividend payouts. Investors seeking to enhance their dividend income may consider including these PSU stocks in their portfolios. It is essential to analyze the financial health and future prospects of these companies before making investment decisions.
