Investors looking for profitable opportunities in the stock market often turn their attention to dividend stocks. According to Axis Securities, five prominent large-cap companies have emerged as leaders in providing substantial dividend yields over the past year. Understanding these stocks can be crucial for investors aiming to enhance their portfolios with reliable income.
The Importance of Dividend Yield
Dividend yield is a vital financial metric that indicates the annual cash return on investment based on a company’s stock price. A dividend yield of 3% to 5% is generally considered attractive. However, market conditions can influence these figures. Investors frequently assess dividend yield as a key factor when selecting dividend-paying stocks.
Leading Large-Cap Dividend Stocks
Axis Securities recently highlighted the top five large-cap stocks that have delivered impressive dividend yields in the last year. Here’s a closer look:
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Vedanta stands out with a remarkable 12% dividend yield, leading the pack. For the fiscal year 2024-25, the company has declared a total dividend of ₹43.5 per equity share, based on a face value of ₹1. Notably, on December 16, 2024, Vedanta announced its fourth interim dividend of ₹8.50 per share, with a record date of December 12, 2024. Earlier in the year, it declared interim dividends of ₹20.00, ₹4.00, and ₹11.00, showcasing its commitment to returning value to shareholders.
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Hindustan Zinc, a subsidiary of Vedanta, offers a solid 7% dividend yield. Over the past year, it has distributed ₹29.3 in dividends. This performance mirrors that of Coal India, which has also provided a 7% dividend yield with a total dividend payout of ₹26.35 during the same period.
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Oil and Natural Gas Corporation (ONGC) is another strong contender, featuring a 6% dividend yield. In the last twelve months, ONGC has paid out ₹13.5 per equity share in dividends, making it an attractive option for income-focused investors.
- Bharat Petroleum Corporation (BPCL) also boasts a 6% dividend yield. The company has rewarded its shareholders with a total of ₹15.5 per equity share over the past year.
Conclusion
For investors keen on dividend stocks, the figures provided by Axis Securities highlight the potential of these large-cap companies to deliver reliable income. With notable yields and consistent dividend payouts, stocks like Vedanta, Hindustan Zinc, Coal India, ONGC, and BPCL could play a significant role in enhancing investment portfolios. As always, it’s essential to conduct thorough research and consider market conditions before making investment decisions.
