0.5-3.2% Yields: 5 PSU Dividend Stocks In March, Sets Record Date; Oil India, BEL, BDL, REC, PFC; Buy Or Sell?

Five public sector undertakings (PSU) witnessed huge buying sentiment on Monday as these stocks are in focus ahead of their interim dividend recommendations. These stocks are of diverse segments namely oil and gas, power, NBFC, and defence. They are Oil India, REC, PFC, Bharat Electronics (BEL), and Bharat Dynamics (BDL). Dividends are among the rewards that listed companies distribute to their investors from their profitability of a respective financial year.

Notably, these 5 PSUs are among dividend king stocks with high dividend yield.

On Monday, in early deals, Oil India stock jumped by 2% to hit an intraday high of Rs 642.80 apiece, nearing its 52-week high of Rs 647.40 apiece. Meanwhile, BEL surged by 0.7% to an intraday high of Rs 216.65 apiece, which was close to a 52-week high of Rs 216.70 apiece. BDL shares surged by 1.7% to hit an intraday high of Rs 1829.70 apiece. Further, REC shares advanced over 1% to an intraday high of Rs 477.40 apiece. Also, PFC shares gained to hit an intraday high of Rs 432.15 apiece.

Oil India Dividend:

First up is Maharatna CPSE Oil India who approved a second interim dividend of Rs 8.50/- per share (85% of paid-up capital) for the financial year 2023-24. The Second Interim Dividend 2023-24 will be paid on or before 07th April 2024. While the Record Date is fixed on 18th March 2024, to determine eligible shareholders.

For FY24, the first interim dividend payout is 35% amounting to Rs 3.5 per share. In FY23, the company paid dividends up to 200% amounting to Rs 20 per share.

Currently, Oil India has a dividend yield of 3.17%.

Motilal Oswal has recommended BUY for a target price of Rs 650, while Sharekhan has suggested BUY as well for a target price of Rs 755.

Bharat Electronics (BEL) Dividend:

BEL is yet to declare its dividend, however, is planning to do so in the coming days.

In its regulatory filing, BEL said, "We would like to inform you that for the purpose of ascertaining the eligibility of the shareholder for payment of second interim dividend on equity shares of the Company for the Financial Year 2023-24, if declared on the Board Meeting scheduled to be held on 15th March 2024."

For the same, the company fixed the Record date on Saturday, the 23rd of March, 2024.

The defence giant paid the first interim dividend of up to 70% amounting to Rs 0.70 per share earlier for FY24. In FY23, the payout was to the tune of 180% valuing Rs 1.8 per share.

On the current market price, BEL has a dividend yield of 0.84%. On BSE, last week, the stock price was at Rs 215.40 apiece, up by 2.33% with a market cap of Rs 1,57,452.64 crore. The company touched a new 52-week high of Rs 216.70 apiece on March 7th.

UBS is the latest to initiate coverage on BEL. The brokerage recommended buying for a target price of Rs 257.

PFC Dividend:

Power Finance Corporation (PFC) has scheduled a board meeting on March 11 to consider the third interim dividend payout for FY24. The company will also set its record and payment date accordingly.

For FY24, earlier, PFC paid the first and second interim dividends of 45% (Rs 4.50 per share) and 35% (Rs 3.50 per share) earlier. In FY23, the company paid a total dividend of 132.50% aggregating to Rs 13.25 per share.

On the current market price, the company's dividend yield is at 3.08%. Last week, on BSE, PFC shares stood at Rs 429.80 apiece, up by 1.33% with a market cap of Rs 1,41,838.37 crore.

On PFC, leading global brokerage CLSA has maintained BUY, while raising its target price at Rs 550/share. The outlook is also positive.

REC Ltd Dividend:

Leading, power finance provider, REC Ltd announced that the board of directors are scheduled to meet on Saturday, March 16, 2024, inter alia to consider the proposal for declaration of a 3,d Interim Dividend, if any, for the financial year 2023-24.

This will be the first dividend announcement in 2024. In the last year, REC paid up to 141% dividends amounting to Rs 14.1 per share. Of the total, there was also a dividend payout of Rs 12.6 per share or 126% for FY24.

On the current market price, REC Ltd's dividend yield is at 2.66%. Last week, on BSE, REC shares ended at Rs 472.70 apiece, up by 0.7% with a market cap of Rs 1,24,472.50 crore.

As per Trendlyne data, the average 1-year target price is at Rs 489, indicating a potential upside of 3% ahead. Notably, CLSA has recommended Buy on REC Ltd for a target price of Rs 560 per share.

Bharat Dynamics Dividend:

Yet another defence major, Bharat Dynamics' board of directors is rescheduled to meet on March 21, to consider payment of Interim Dividends for the financial year 2023-24. Also, the board will consider the stock splits ratio.

BDL fixed April 2, as the record date for payment of Interim Dividend on Equity Shares for the Financial Year 2023-24.

This will be the first dividend of FY24. In FY23, the company paid dividends up to 93.50% valuing to Rs 9.35 per share.

On the latest market price, BDL has a dividend yield of 0.52%. Last week, on Friday, BDL shares ended at Rs 1798.35 apiece, up by 0.7% with a market cap of Rs 32,960.38 crore on BSE.

On the valuation, ICICI Direct in its latest research note said, "Valuation at 27.3x P/E on FY26E basis looks attractive given strong growth ahead led by multiple sectoral tailwinds. We recommend BUY on BDL with a target price of Rs 2010 per share (based on 33x FY26E EPS)."

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.