Public sector companies have once again proved to be attractive for investors seeking steady income, as many of them announced hefty dividend payouts over the past 12 months. For long-term investors, these stocks not only offer capital appreciation but also provide regular income through dividends.
Dividends are the portion of a company’s profit distributed to its shareholders, typically paid quarterly, semi-annually, or annually. Among state-owned firms, Coal India stood out with the highest dividend payout of Rs 32 per share, delivering a dividend yield of 8.6 per cent.
Dividend yield refers to the annual dividend income expressed as a percentage of the stock’s current market price — an important metric for income-focused investors. Power Finance Corporation (PFC) rewarded shareholders with Rs 19.5 per share — reflecting a yield of 5 per cent, while REC Limited paid Rs 19.1 per share, also translating into a 5 per cent yield.
Energy giant ONGC distributed Rs 13.5 per share during the year, offering investors a yield of 6 per cent. Bank of Baroda (BoB) gave out Rs 8.4 per share, though its yield stood at a relatively modest 3 per cent. NALCO declared a dividend of Rs 10 per share with a 5 per cent yield, while NMDC announced a smaller payout of Rs 4.8 per share, but managed to deliver a higher yield of 7 per cent.
Among others, BPCL also paid Rs 10 per share, translating into a 3 per cent yield, while engineering consultancy firm RITES Limited matched the Rs 10 payout with a yield of 4 per cent. At the end of the list are BPCL and HUDCO. Oil company BPCL paid a dividend of Rs 10, giving investors a 3 per cent return. HUDCO also gave a dividend of Rs 8.4, which is a 3 per cent return as well. Meanwhile, the BSE PSU index has gone up by almost 250 per cent in the past five years
This rise happened because the companies in the index have been performing better, managing their operations well, improving their finances, and benefiting from government reforms.
