Investing in high dividend-paying stocks is one of the best ways to generate cash for long-term investors.
The dividend yield is the ratio of dividends a company pays divided by the stock price. This ratio can help you select low-cost stocks with higher dividend yields.
The companies announce their dividends for an entire financial year, in a format that is periodic and then pay the eligible shareholders.
The dividends are an income stream that is passive on your investment in stocks. In general, a business with high yields on dividends is considered to be secure.
The higher dividend yield provides a clear knowledge of the share’s worth.
Simply put, a high dividend yield stocks suggest that the share is undervalued according to markets.
The most dividend-paying stocks have provided better yields to investors conventional investment strategies.
Top 8 dividend yielding PSU Stocks
1) NMDC Ltd
The NMDC stock’s dividend yield is 12.3 per cent, the highest in the list. Its latest dividend payout percentage is 46.06 per cent, which is the percentage of the company’s net income in a fiscal year.
The price of the NMDC stock is Rs 119.95 as of December 7, 2022.
The company’s profit after tax (PAT) is 30.07 per cent, and earnings per share (EPS) is Rs 21.43. The five-year return on equity (ROE) is 19.73 per cent.
2) GAIL (India) Ltd
Gail’s dividend yield is 10.7 per cent, the third highest on the list. The dividend payout percentage stood at 36.23 per cent. The PAT margin stood at 7.95 per cent.
The EPS is Rs 17.95, and the five-year average ROE stood at 13.31 per cent.
The stock price of this state-run energy company is Rs 93.25 as of 7 December 2022.
3) Rural Electrifying Corporation Ltd.
At 12 per cent, the REC stock has the second-highest dividend yield. Its latest dividend payout stood at 30.11 per cent.
The PAT margin stood at 26.23 per cent, EPS stood at Rs 38.97, and the five-year ROE stood at 17.48 per cent.
The stock price is Rs 113.05 as of December 7, 2022.
4) Coal India Ltd. (Coal India)
Coal India has paid a dividend yield of 230 per cent to its investors this year. It has paid dividends on three occasions (21 February – 50 per cent; 11 August- 30 per cent; 15 November- 150 per cent)
5) Power Finance Corporation Ltd. (PFC)
Power Finance Corporation has paid a dividend yield of 125 per cent to its investors this year. It has paid dividends on four occasions (25 February – 60 per cent; 9 June- 12.5 per cent; 1 September- 22.5 per cent; 24 November- 30 per cent)
6) Indian Oil Corporation Ltd.
Indian Oil Corporation has paid a dividend yield of 64 per cent to its investors this year. It has paid dividends on two occasions (9 February – 40 per cent; 11 August- 24 per cent).
7) Hindustan Petroleum Corporation Ltd. (HPCL)
Hindustan Petroleum Corporation has paid a dividend yield of 140 per cent to its investors this year. It has paid dividend on one occasion (22 August- 140 per cent).
8) NTPC Ltd.
NTPC Ltd. has paid a dividend yield of 70 per cent to its investors this year. It has paid dividends on two occasions (3 February – 40 per cent; 10 August- 30 per cent).
