Up to Rs 35/Share Dividend Paid In 2023: Top 3 High Dividend Yield Defence Stocks; HAL, BEL, Bharat Dynamics

Defence stocks have recorded extraordinary gains due to strong order books. So far in 2023, aerospace and defence stocks have either given double-digit returns or emerged as multibaggers. But apart from giving hefty gains, some of the companies have also rewarded their shareholders with huge dividends. Currently, the top 3 high dividend yield stocks are Bharat Electronics, Bharat Dynamics, and Hindustan Aeronautics (HAL), as per Trendlyne data.

Trendlyne's data on top dividend yield defence stocks is adjusted to any bonus issues or share splits declared in 1-year and 2-year time frame.

If you own any of these three dividend yield stocks, here's what you need to know about them:

Bharat Electronics Dividends:

In Trendlyne's list, BEL tops the chart with a 1-year average dividend yield of 1.28%, while 2-year and 5-year average yield is at 1.18% and 0.95% respectively.

This Navratna Defence PSU has declared a total of 180% dividends aggregating to Rs 1.8 per share for FY23. The dividend was announced in series of Rs 0.6 each or 60% in January, March, and May.

The company has achieved a Turnover of Rs 7364.82 crore, registering a growth of 5.82% during the 1st half of FY 2023-24 over the Turnover of Rs 6,959.78 crore recorded in the corresponding period of the previous
year. During the 2nd Quarter of FY 2023-24, BEL achieved a Turnover of Rs. 3918.13 crore as against Rs. 3896.20 crore recorded in the corresponding period of the previous year.

Also, in H1FY24, PAT stood at Rs 1343.18 crore, with
a growth of 28.84% YoY. While in Q2FY24, PAT was at Rs 812.34 crore as against Rs 611.05 crore recorded in the corresponding period of the previous year.

Its order book position as of October 1, 2023, stood at Rs. 68,728 crore.

On BSE, BEL shares are nearing its 52-week high of Rs 147.20 apiece. Last week, on Friday, after hitting an intraday high of Rs 142 per share, BEL shares ended at Rs 140.45 apiece, up nearly a per cent on BSE with m-cap of nearly Rs 1.03 lakh crore. YTD, BEL shares rose by over 40%.

Bharat Dynamics Dividends:

In second position, BDL's 1-year average dividend yield is at 0.81%, while 2-year and 5-year trailing averages would be at 0.76% and 0.70%.

Bharat Dynamics has paid two dividends for FY23 in the current year. The first interim dividend was Rs 8.15 per share or 81.5% which was announced in February, followed by a final dividend of 12% or Rs 1.2 per share in May. Overall, in FY23, the company paid a total dividend of 93.5% aggregating to Rs 9.35 per share.

In the second quarter of FY24, BDL posted a net profit of Rs 147.09 crore, versus Rs 75.82 crore in Q2FY23. While revenue from operations stood at Rs 615.81 crore versus Rs 534.78 crore.

The stock is just Rs 118 away from crossing its 52-week high of Rs 1,278 apiece on BSE. Last week, on Friday, BDL shares ended at Rs 1,160.05 apiece, up by 4.91% with m-cap of Rs 21,262 crore. YTD, BDL shares gained by nearly 23%.

Hindustan Aeronautics (HAL) Dividends:

HAL's average dividend yield is at 0.78% in 1 year, while yield is at 1.02% in 2 years and 0.84% in 5 years.

The latest dividend payout will be of final Rs 15 per share for which HAL shares turned ex-dividend recently. This would be for fiscal FY23. Earlier, HAL paid a first and second interim dividend of Rs 20 per share each, aggregating to Rs 1,337.55 crore for the said fiscal. Overall, in FY23, HAL's dividend payout stood at 550% valuing to Rs 55 per share. In the entire fiscal, the payment was Rs 1,839.13 crore to shareholders.

But in 2023, HAL declared up to Rs 35 dividend per share or 350% for shareholders. Also, this year, HAL shares have also split into the ratio of 1:2. That means that HAL's existing 1 (one) Equity Share of the face value of Rs 10/- each fully paid up was sub-divided into 2 (Two) Equity Shares of Rs 5/- each fully paid-up.

During Q2FY24, HAL reported a marginal upside of 1.3% in consolidated net profit to Rs 1,236.70 crore, as against Rs 1,221.23 crore in Q2FY23. Consolidated revenue also climbed to Rs 5,635.70 crore in Q2FY24, as against Rs 5,144.79 crore in Q2FY23 and Rs 3,915.35 crore in Q1FY24.

Last week on Friday, HAL shares hit a new 52-week high of Rs 2,250 apiece before ending at Rs 2,241.95 apiece, up by 4.40% on BSE with a market cap of nearly Rs 1.5 lakh crore. YTD and HAL shares have rallied by nearly 77%.