Coal India Ltd. and REC Ltd. are among the PSU stocks that are well-known for their impressive quarterly and annual dividends, and in the past year, both have offered dividend yields of over 10%.
Coal India Limited
CIL has declared an equity dividend of 28.25 per share over the past year, resulting in a dividend yield of 13.27%. The Maharatna Public Sector Enterprise is administered by the Indian Ministry of Coal. The stock has increased by more than 31% in the past year.
The state-owned company’s consolidated net profit increased by 70% to 7,755.5 crores from 4,558 crores in the prior-year period, while sales increased to 32,429 crores from 25,991 crores a year earlier. In addition, the Board of Directors authorised the payment of a second interim dividend of $5.25 per share for the fiscal year 2022–2023.
- Advertisement -
“Coal India reported a Q3 FY23 EBITDA ex-OBR of INR112.4bn, up 52% year-over-year and exceeding our forecast.” In the fourth quarter of fiscal year 23 (Q4FY23), we anticipate a general decrease in the prices of online auctions. Any increase in FSA premiums would be a key catalyst for the stock price (have not factored in any hike). “Maintain a buy rating with a target price of 295,” reported Nuvama following CIL’s Q3 results.
REC
In the past year, REC has declared an equity dividend of 13.05 per share, which at the current share price results in a dividend yield of 11.41%, according to data from stock analytics platform Trendlyne. The stock has gained more than 19% in the past year.
The state-owned infrastructure finance company reported a 5% increase in net profit to 2,915 crores for the third quarter, but a 2% decline in total revenue to 9,785 crores. The company, which primarily provides loans to state electricity boards, state utilities, and all segments of the private sector’s power infrastructure, reported that its interest income on loan assets increased by nearly 1 percent to Rs 9,660 crore. In addition to announcing its earnings, the company’s board of directors also approved and declared the second interim dividend of 3.25 per share for the fiscal year 2022–2023.