Up to 9% Dividend Yield In 12 Months; Coal India, ONGC Among Top 15 PSU Stocks To Reward Big Dividends

Financial and oil & gas stocks are among the top dividend yield under public sector undertaking. Some of the renowned high-dividend yield PSU stocks are ONGC, Balmer Lawrie Investment, HPCL, HUDCO, and Canara Bank. However, it would be the largest coal producer in the country, Coal India that topped the chart with the highest dividend yield in the PSU basket, as per data from Axis Securities. Generally, dividend yields usually give clarity of returns on dividends against the investment in stocks.

Here is the list of the top 15 PSU stocks that have the highest dividend yields on their dividend payout in 12 months as per Axis Securities report:

Coal India is the highest dividend yield stock in PSU with a yield of 9%. The coal producer has paid a dividend of Rs 20.25 per share in the past 12 months, and the latest would be Rs 4 dividend per share.

This would be followed by yet another giant however in the oil & gas segment. ONGC is the second highest dividend yield stock to the tune of 8%. In the past 12 months, the company paid a dividend of Rs 14 per share. The latest dividend payout would be Rs 0.5 per share.

Further, stocks like Chennai Petroleum Corporation, REC Ltd, Balmer Lawrie Investment, Oil India, and Power Grid Corporation of
India has a dividend yield of 7% each. While National Aluminium Company held a dividend yield of 6%.

Meanwhile, Hindustan Petroleum Corporation Ltd (HPCL), Housing & Urban Development Corporation Ltd (HUDCO) and Power Finance Corporation held a dividend yield of 5% each. Also, companies like Balmer Lawrie & Company, Rashtriya Chemicals & Fertilizers, Rites, and Canara Bank have a dividend yield of 4% each.

Of the total 15 stocks, five stocks belonged to the financial sector, four stocks were under the oil & gas basket, and two were under the metals & mining segments. 1 stock each was in the industrials, IT and utilities segments.

As per the Angel One website, Dividend yield is an important factor that traders consider while choosing the right stock market investment because, at high volumes, it can make a large difference in the overall returns. The dividend yield is calculated by dividing the company's annual cash dividend per share by the current share price.

Formula: Dividend Yield = Dividend per share / Price per share x 100

Among the positive factors is that high dividend yield stocks generally help investors in hedging returns amidst uncertainties like high inflation. They are less prone to suffer during market volatility. Also, they minimise the time taken for tracking stock movements on a daily basis. Eventually, they provide a reliable income stream. However, it is important to note that good quality dividend stocks can be based on their consistency in distributing dividends and growth in the percentage of dividends. There are certain risks though such as these high dividend-paying companies have a lack of reinvestment opportunities and scope for expansion among others.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, znor 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.