Investing in dividend stocks can be a lucrative strategy, especially when focusing on Public Sector Undertakings (PSUs). According to recent data from Axis Securities, Coal India, Oil and Natural Gas Corporation (ONGC), and Bharat Petroleum Corporation Ltd (BPCL) are leading the pack as the top five PSU stocks for FY25 in terms of dividend yield. Other notable mentions include Indian Oil Corporation Ltd and REC Ltd.
Understanding Dividend Yield
When evaluating stocks, one essential metric investors should consider is the dividend yield. This financial indicator reflects the annual dividend payments a company makes relative to its stock price. Typically, a healthy dividend yield ranges from 3% to 5% or even higher.
- Importance of Market Conditions: The overall market environment can significantly impact dividend yield, making it a crucial factor for investors looking for consistent returns.
Top Dividend-Paying PSU Stocks in FY25
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Coal India Ltd leads the pack with an impressive 7% dividend yield, having distributed a total of ₹26.35 in dividends over the past year.
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ONGC follows closely behind, boasting a robust 6% yield with dividend payments totaling ₹13.5 per share in the last 12 months.
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Bharat Petroleum Corporation (BPCL) also offers a substantial 6% dividend yield, matching ONGC’s performance, with a dividend payout of ₹15.5 per share.
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Indian Oil Corporation Ltd provides a commendable 5% yield, slightly below BPCL, having paid ₹7 in dividends over the last year.
- Finally, REC Ltd rounds out the top five with a 5% dividend yield, offering ₹20.4 per share in dividends during the same period.
Conclusion
These top-performing PSU stocks not only deliver solid returns through dividends but also represent a potentially stable investment choice amid fluctuating market conditions. As always, it’s essential for investors to conduct thorough research and consider market trends when selecting dividend-paying stocks. For more insights on investment strategies and stock performance, stay connected with our latest updates.
