4% To 8% Dividend Yield: Top 10 PSU Stocks Paying High Dividends; What's Special About Them?

10 PSU stocks from diverse segments like oil & gas, metals & mining, energy, and chemicals have paid hefty dividends to their shareholders in the past two fiscal years. These 10 PSU stocks also have high dividend yield, which brokerage Religare Broking believes is one of the main factors to consider when investing in dividend-paying stocks. These are --- Coal India, Oil India, PTC India, ONGC, Gujarat State Fertilizer & Chemicals, Power Grid, Chennai Petroleum Corporation, GNFC, National Aluminium Company, and NMDC.

According to the brokerage, here's how much dividends per share these top 10 dividend yield stocks have declared.

1. Coal India: The largest government-backed coal producer, Coal India topped the charts of the highest dividend yield PSU stocks. The coal-mining company has a dividend yield of 8.2% and paid Rs 24.3 dividend per share in FY23, also higher than the Rs 17 dividend per share paid in FY22. The price-to-equity ratio of this stock is also high at 8.9x.

2. Oil India: ONGC-backed oil and gas company, Oil India has a dividend yield of 6.7%. The company paid a Rs 20 dividend per share in FY23, rising from a Rs 14.3 dividend per share in FY22. It has a price-to-equity ratio of 4x.

3. PTC India: This power trading solutions provider, PTC India has a dividend yield of 5.9%. It paid dividends of Rs 7.8 per share each in FY23 and FY22. Its PE ratio is at 6.8x.

4. ONGC: Government-led largest oil and gas explorer producer in the country, ONGC also has a dividend yield of 5.9%. It paid an Rs 11.3 dividend per share in FY23, slightly higher than the Rs 10.5 per share dividend paid in FY22. Its PE ratio is currently at 4.9x.

5. Gujarat State Fertilizers & Chemicals: With a dividend yield of 5.8%, this Indian chemicals and fertilizers manufacturer has paid dividends to the tune of Rs 10 per share in FY23, which was multi-fold higher than the dividend payout of Rs 2.5 per share in FY22. Its PE ratio is at 3.7x.

6. Power Grid Corporation Of India: Engaged mainly in the transmission of bulk power across different states of India, Power Grid has a dividend yield of 5.3%. Although it has a high dividend yield, Power Grid's dividend payout was lower to Rs 10.7 per share in FY23 compared to Rs 14.8 dividends per share paid in FY22. It has the highest PE ratio among the top 10 state-owned dividend yield stocks, at a staggering 10.3x.

7. Chennai Petroleum Corporation: Yet another chemical stock has a dividend yield of 5.3%. Chemical Petroleum's dividend payout has increased exponentially compared to the others in the top 10 list, to Rs 27 per share in FY23 as against the dividend paid of merely Rs 2 per share in FY22. Its PE ratio however is the lowest among the others at 1x.

8. GNFC: With a dividend yield of 4.9%, GNFC's dividend payout tripled to Rs 30 per share in FY23 as compared to Rs 10 per share in FY22. The stock's PE ratio is ar 5.4x.

9. National Aluminium Company: NALCO holds a dividend yield of 4.6%, and this metal company has paid a dividend of Rs 4.5 per share, becoming the second in the list to pay a lower dividend from Rs 6.5 per share in FY22. Its PE ratio however is the second highest compared to others, at a whopping 9.3x.

10. NMDC: Last but not least, the mining company, NMDC has a dividend yield of 4.5%. It is the third company in the top 10 list to chalk down its dividend payout in FY23 to Rs 6.6 per share, more than half of the Rs 14.7 dividends per share paid in FY22. The stock's PE ratio is at 5.9%.

What is so special about dividend yield stocks?

According to Religare Brokerage, dividend yield is one of the main factors to consider when investing in dividend-paying stocks. It is an indicator of the return that the investors are earning on their shares.

The brokerage's note said, "We have filtered the list of top dividend-paying companies based on their fundamental strength and selected 10 stocks. Investors, interested in dividend income, can consider these stocks for investment."

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.