In uncertain market times, many investors seek solace in dividend-yielding Public Sector Undertakings (PSUs). These government-backed entities have long been viewed as reliable options for those looking to earn consistent returns while holding onto their shares. Although their stock prices may not always soar, they often deliver steady dividends, providing an appealing cushion against market volatility.

Top Dividend-Yielding PSU Stocks to Consider

Let’s explore the standout PSU stocks that are currently impressive in terms of dividend yields. Here are five stocks that have garnered attention for their attractive dividends.

Coal India: Leading with High Yield

With a remarkable dividend yield of nearly 7%, Coal India holds the top position among PSUs. The company disbursed Rs 26.35 per share in dividends over the last year. However, despite its high yield, the stock has faced challenges recently.

• On Wednesday, it closed at Rs 375.25, down 2%.
• It has experienced a 6% decline in the past week.
• Over the last six months, Coal India shares have surged 23%, yet they are down 18% year-on-year.
• Its 52-week high is Rs 543.55, while the low stands at Rs 349.25.

Currently, the stock is trading below its annual peak and has dropped 3% year-to-date.

ONGC: Reliable Dividends Amid Price Drops

The Oil and Natural Gas Corporation (ONGC) offers a solid dividend yield of 6%, with a payout of Rs 13.5 per share over the past 12 months. However, the stock’s performance has been less than stellar.

• The stock closed at Rs 223, down 1.6% on Wednesday.
• It has faced a 10% decline in just one week.
• Over the past six months, ONGC has fallen 23%, and it is 18% lower year-over-year.
• Year-to-date, the stock has dipped 6%.

BPCL: Attractive Yet Declining

Bharat Petroleum Corporation Limited (BPCL) also boasts a dividend yield of 6%, with Rs 15.5 per share paid out in dividends. However, the stock’s trajectory has been downward.

• In the last five days, BPCL shares dropped 0.40%.
• Over the past month, it decreased by 12.07% and has fallen 14.16% in the last six months.
• Year-over-year, the stock is down 4.77% and 2.49% year-to-date.
• Its 52-week high is Rs 376, while the low is Rs 234.01.

Indian Oil Corporation: Solid Payouts, Weak Stock Sentiment

The Indian Oil Corporation (IOC) showcases a 5% dividend yield, with a Rs 7 payout per share. Unfortunately, its stock performance has been lackluster.

• Recently, it slipped 0.79% in the past five days.
• Despite a near 8% increase in the last month, it has plummeted 20.13% over six months and 24.13% over the year.
• The stock’s 52-week high is Rs 185.97, while the low is Rs 110.72.

REC: High Yield with Significant Corrections

REC Limited, a financial PSU, offers a 5% dividend yield, with a payout of Rs 20.4 per share. However, it has faced significant challenges in its stock performance.

• The stock fell 1.58% on Wednesday and is down nearly 9% over the last five days.
• In the past six months, it has corrected by 28.42% and has dropped 13.12% year-over-year.
• Currently, the stock price is around Rs 384, significantly lower than its 52-week high of Rs 654.

Conclusion

As investors navigate turbulent market conditions, dividend-paying PSUs like Coal India, ONGC, BPCL, IOC, and REC are drawing attention. While these stocks offer attractive yields, their recent performance highlights the importance of thorough research and market analysis. Investors should weigh the benefits of dividend income against potential price declines to make informed decisions in their portfolios.