3 Stocks That Give Better Dividend Yields Than Bank Deposit Interest

Indian markets have been moving gradually higher, though worries and fears of higher inflation remain. In the below, we have highlighted some stocks that are good on dividend yields. Please note, that the same dividends may not be assured in the future in some cases from the below list. In some other cases there could have been a bonus issue of shares, which means similar dividends on the enhanced capital may not be forthcoming.

Here are a list of 3 stocks that give higher dividend yields than bank deposits

Vedanta

For the year ending March 2022 Vedanta has declared an equity dividend of Rs 45 per share. At the current share price of Rs 282 it gives a dividend yield of 15.93%. It's pertinent to take into account that there is no assurance that Vedanta would continue to give and maintain such high dividends. We remain extremely doubtful on Vedanta being able to declare the same dividends year after year. Please note, we are only giving information and not suggesting any stock to buy, sell of hold from the list.

REC

For the year ending March 2022 REC, a government owned entity has declared an equity dividend of Rs 15.3 per share. At the current share price of Rs 117, this results in a dividend yield of 13.07%. However, the company may not retain the same dividend this year, because the capital has been enhanced after a 1:3 bonus. So, here again, read the dividends possibility with a pinch of salt. However, despite the bonus our belief is that this stock's dividend could still equal or better bank deposit interest rates, which have only been trending higher lately.

PFC

Power Finance Corporation, like REC is a government owned entity and declared a dividend of amounting to Rs 12 per share last year. At the current share price of Rs 154, it results in a dividend yield of 7.74%. As far as PFC is concerned there could be some assurance that dividends would be maintained. Having said that, the stock has run-up in the last few trading sessions.

Disclaimer

Please note that this article is for information purposes only. We have only highlighted dividends and please do not construe this as a buy", "sell" or hold from our end. Neither Greynium Information Technologies nor the author should be held responsible for losses based on a decision from the article. Investors should seek professional help.