PSU Power Firm Rewards Rs 7,030 Crore Worth Dividends To Shareholders; Stock Up 53% From 1-Year Lows

Government-backed leading power generating firm, NTPC has rewarded a whopping Rs 2908.99 crore worth of final dividend to its shareholders in the fiscal year 2022-23. That being said, the overall dividend payout by NTPC is at an impressive Rs 7,030.08 crore, accounting for 41% of the total profits in FY23. This also would be the thirteenth consecutive year of dividend distribution by NTPC.

In a notification, the Power Ministry highlighted that NTPC Ltd., India's leading power generation company, has announced the payment of its final dividend for the financial year 2022-23.

The final dividend payment is for an amount of Rs 2908.99 crore, constituting 30.00% of the paid-up equity share capital of NTPC.

With this, the total dividend disbursed for FY 2022-23 stands at an impressive Rs 7,030.08 crore, being 41% of the Profit After Tax (PAT) for the financial year, the ministry said.

It added, "This marks the 30th consecutive year in which the company has distributed dividends, underscoring its dedication to providing consistent returns to its investors."

Further, the ministry said, "As a key player in the Indian energy sector, NTPC Ltd. continues to drive excellence, sustainable growth, and shareholder satisfaction through its strategic initiatives and robust financial performance."

Currently, NTPC is among the top dividend yield PSU stocks. On Wednesday, this PSU stock ended at Rs 237.20 apiece, up by 0.98% on BSE. The stock was also near its 52-week high of Rs 244.95 apiece.

At the current market price, NTPC's dividend yield is at 3.06%. As per Trendlyne data, the company has paid a total dividend of Rs 7.25 per share to its shareholders.

The company has a market cap of more than Rs 2.30 lakh crore as of September 13, 2023.

NTPC shares are currently higher by 52.98% from their 52-week lows of Rs 155.05 apiece. YTD, the stock has climbed over 41%.

What are dividend stocks?

As per Nirmal Bang's website, the companies that consistently distribute profits as dividends to their shareholders and have a tremendous track record are known as dividend stocks. These types of companies have a strong foothold and have a solid presence in the industry. Since they are well established and already achieved their maturity peak, the stocks of these companies have less growth potential than other growing stocks in the market.

There are two types of dividend stocks --- 1) dividend growth stocks, and 2) high dividend stocks.

Nirmal Bang's website highlighted that Dividend growth stocks are those stocks that have a larger potential increase for future dividend rates. On the other hand, high dividend stocks are those stocks that may or may not increase the future dividend rate since they're paying out a high rate of dividends to shareholders.

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