Coal India Dividend vs FD Rates: Is The Maharatna PSU's Dividend Yield Better Than FD Rates? Comparison

Shares of Coal India rallied on Tuesday as investors reacted to the Maharatna PSU's fourth-quarter results for FY 2025-26 and dividend announcement. While the world's largest coal miner is a frequent focus for its production volume, the spotlight in Q4 result was on dividend announcement. For many, Coal India isn't just a commodity play; it is a specialised "income stock" that rivals traditional saving instruments.

In the Indian investment landscape, Fixed Deposits (FDs) are the gold standard for safety and predictable cash flow. With Coal India's historically high dividend yield often hovering near or above 5-6%, many investors can consider adding the PSU giant in their portfolio. But can this PSU giant offer a superior alternative to the humble FD? Let's find out.

Coal India Dividend Yield

Coal India declared around 34 dividends (including the one announced on April 27) since February 18, 2011. In the past 12 months, Coal India has declared an equity dividend amounting to Rs 31.65 per share.

At the share price of Rs 451.8 per share, Coal India's dividend yield stood at 5.84%, as per Trendlyne data excluding the April 27 announcement. Coal India, on Monday, announced a final dividend of Rs 5.25 per equity share with a face value of Rs 10.

Coal India Dividend Yield vs FD Rates

Coal India has a dividend yield of 5.84% (based on the market price on April 27). The stock was trading 3.9% higher at Rs 471.55 per share at 10:18 am on Tuesday. Considering its CMP and the latest dividend announcement, Coal India's dividend yield now stands at 6.71%.

The highest FD rates are offered by Suryoday Small Finance Bank. The bank is offering highest FD rate of 8.1%. Second on the list is Jana Small Finance Bank, which offers highest FD rate of 7.77%, ESAF Small Finance Bank is third on the list with highest FD rates of 8%.

Coal India Dividend

The company's board of directors, on Monday, approved a final dividend of Rs 5.25 per share with a face value of Rs 10 each. "the Board of Directors at its meeting held on date has inter alia, declared Final Dividend for the Financial Year 2025-26 @ Rs 5.25 per equity share on the face value of Rs 10/- as recommended by the Audit Committee of CIL at its meeting held on date. Payment of Final Dividend for FY 2025-26 shall be made subject to approval of Shareholders in the ensuing AGM," as per the BSE filing released on Monday night.