3 Benefits Of Dividend Stocks: LPG Supplier Petronet LNG To Declare Special Dividends For FY24 Soon

After paying 100% dividends in the fiscal year 2022-23, LPG, CNG and PNG supplier Petronet LNG is back with yet another special incentive for its shareholders. The government-backed company is set to declare its earnings for September 2023 quarter and has also declared its plan to pay special dividends for FY24.

In its regulatory filing, Petronet said, "The Meeting of the Board of Directors of the Company will be held on Monday, 30th October 2023, inter-alia, to consider and approve Unaudited Financial Results of the Company for the quarter and half-year ended 30th September 2023 and Special Interim Dividend, if declared, for the financial year 2023-24."

The record, ex-dividend and payment date of the dividend will be announced soon.

In FY23, the company paid a dividend of 100% amounting to Rs 10 per share.

At the current market price, the stock has a dividend yield of 4.33%.

On BSE, the stock ended at Rs 230.90 apiece, flat on Monday compared to the previous closing price. Its market cap stood at Rs 34,635 crore. This midcap stock has rallied nearly 15% in a year.

Petronet LNG is an energy company that carries out its operations in the midstream sector. Its major promoters include GAIL (India) Ltd, Oil and Natural Gas Corp Ltd (ONGC), Indian Oil Corp Ltd (IOCL) and Bharat Petroleum Corp Ltd (BPCL).

The company regasifies the imported LNG and supplies to its promoters and others. Petronet imports LNG from Qatar, Oman and Australia. Petronet also owns and operates LNG terminals at Dahej, Gujarat and Kochi, Kerala. Petronet is headquartered in New Delhi, India.

What are the benefits of investing in dividend stocks?

According to ICICI Direct's blog, Dividend is part of a company's profits which is shared with the shareholders. Dividend stocks represent an investment where the primary objective is to generate income in the form of dividend payments. Let us first understand the dividend meaning in detail.

The brokerage highlighted the following benefits of investing in dividend stocks in general terms:

1. Stock Price Appreciation: When a company declares dividends, more investors tend to purchase its stocks thereby creating a huge demand for the stock in the market and ultimately resulting in a surge in stock price.

2. Source of passive income: Profitable companies generally distribute dividends to shareholders periodically. Hence, dividend stocks are an additional source of income for shareholders as they consistently get dividends. These regular dividend payments can be seen as interest received on fixed-income securities.

3. Reinvest the dividend payments: If you do not wish to utilise your dividend payments, you can always choose to reinvest them. You can invest the money in stocks or any other financial instrument of your choice. This gives you a chance to maximise your investment earnings.

Investors looking for a steady stream of income can find dividend stocks attractive investment options. Dividends are a great way to supplement income, build wealth, and grow a portfolio. It is essential to explore the market conditions, consider various aspects, do your research and select the right stocks for investment to maximise your returns, the brokerage's blog said.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor 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.