Many companies in the stock market are well-known for sharing profits with their investors, and these profits are called dividends.
Some stocks make more money through dividends than what you can earn from popular savings plans like Sukanya Samriddhi Yojana and PPF. The numbers from 2023 show this to be true.
Recently, the government changed the interest rates for savings plans like Sukanya Samriddhi Yojana and Public Provident Fund for the January-March quarter.
The interest rate for Sukanya Samriddhi Yojana is now 8.20%, up from 8% in 2023. PPF’s interest rate remains at 7.10%.
Vedanta is a famous stock that pays high dividends. In 2023, they declared a dividend of Rs 62.50 per share, with each share priced at Rs 316.
This means the dividend yield for Vedanta in 2023 is around 20%. Another example is REC Limited, where a Rs 120 share gave a dividend of Rs 14.10 in 2023, resulting in a dividend yield of 11.70%.
Even government-owned companies like Indian Oil, Coal India Limited, and Hindustan Zinc outperformed in dividends.
Indian Oil, with a Rs 78 share, gave a dividend of Rs 8 twice in 2023, making the yield 10.25%.
Coal India Limited, with a share price of around Rs 225, gave a dividend of Rs 24.5, resulting in a dividend yield of 10.90%.
Hindustan Zinc, priced at Rs 325 per share, gave a dividend of Rs 52 in 2023, with a yield of 16%.
Comparatively, the interest from fixed deposits in banks is lower.
The combined dividend income from these 5 stocks in 2023 is more than what you would get from popular investment options like Sukanya Samriddhi Yojana and PPF.
Currently, Sukanya Samriddhi Yojana offers the highest returns among small savings schemes, and the maximum interest on bank FDs is around 8%.
