High Dividend Yields: Do You Have These Top 10 PSU Stocks Paying High Dividends In Your Portfolio?

High dividend yield is one of the key factors to consider when searching for value-paying dividends. It happens so there are top 10 PSU stocks that have attractive yields and are paying hefty dividends in the latest 12 months. These would be companies like Coal India, Oil India, PTC India, ONGC, Gujarat State Fertilizer & Chemicals, Power Grid, Chennai Petroleum Corporation, Petronet LNG, National Aluminium Company, and REC Ltd.

According to Religare Brokerage, dividend yield is one of the main factors to consider when investing in dividend-paying stocks. It is an indicator of the return that the investors are earning on their shares.

The brokerage's note said, "We have filtered the list of top dividend-paying companies based on their fundamental strength and selected 10 stocks. Investors, interested in dividend income, can consider these stocks for investment."

Here is the list of top 10 PSU stocks and their dividend yield along with dividends payout:

1. Coal India: This largest government-backed coal producer tops the chart when it comes to having a high dividend yield. The stock has a dividend yield of 7.7% and has paid Rs 24.3 dividends per share in FY23, compared to Rs 17 dividends per share payout. The P/E ratio is at 8.9x.

2. Oil India: Under the segment of oil & gas, the ONGC-backed company, Oil India has paid a Rs 20 dividend per share in FY23, rising from a Rs 14.3 dividend per share in FY22. It has a price-to-equity ratio of 4x. Its dividend yield is at 6.7%.

3. ONGC: Taking the third spot, the largest oil and gas explorer in India, ONGC has a dividend yield of 6%. The company has paid a total Rs 11.3 dividend per share in FY23, slightly higher than the Rs 10.5 per share dividend paid in FY22. Its PE ratio is currently at 4.9x.

4. PTC India: Power trading solutions provider, PTC India is in the fourth spot with a dividend yield of 5.6%. The company paid a total dividend of Rs 7.8 per share each in FY23 and FY22. Its PE ratio is at 6.8x.

5. Power Grid Corporation of India: Power transmission company, Power Grid paid a total dividend of Rs 10.7 per share in FY23, although lower than the payout of Rs 14.8 per share in FY22. Nevertheless, the stock is in the fifth spot with a high dividend yield of 5.3%. Its PE ratio comes to around 10.3x, the second highest in the top 10 list.

6. Petronet LNG: With a dividend yield of 5%, Petronet LNG has paid a total dividend of Rs 10.6 per share in FY23, marginally up from the payout of Rs 10 per share in FY22. The stock's PE ratio is at 10.6x, the highest in the top 10 list.

7. Gujarat State Fertilizers & Chemicals: This Indian chemicals and fertilizers manufacturer has paid dividends to the tune of Rs 10 per share in FY23, which was multi-fold higher than the dividend payout of Rs 2.5 per share in FY22. Its PE ratio is at 3.7x. The stock has a dividend yield of 5% as well.

8. National Aluminium Company (NALCO): Yet another metal company, that has a dividend yield of 4.9%. However, the stock's dividend payout was lower to Rs 4.5 per share in FY23, compared to Rs 6.5 per share in FY22. It has a PE ratio of 9.3x.

9. Chennai Petroleum Corporation: This chemical stock has a dividend yield of 4.7%. Chemical Petroleum's dividend payout has increased exponentially compared to the others in the top 10 list, to Rs 27 per share in FY23 as against the dividend paid of merely Rs 2 per share in FY22. Its PE ratio however is the lowest among the others at 1x.

10. REC Ltd: Financial services provider to the power sector companies, REC has paid a total dividend of Rs 12.6 per share in FY23, lower than the Rs 15.3 per share payout in FY22. It has a dividend yield of 4.4% and a PE ratio of 2.8x.

Dividends are generally distributed in a certain proportion by listed companies from their net profits earned in a respective financial year. Dividends are among many rewards that are paid for holding equity shares. Other incentives are bonus issues and stock split benefits.