Highest Dividend Yield CPSE Stock: Coal India To Recommend 1st Interim Dividend For FY24 Soon

The largest government-backed coal producer, Coal India is the top dividend yield stock under the CPSEs basket. At 8.2% dividend yield, Coal India is known for rewarding its shareholders consistently with dividend payout. That being said, for the current financial year, Coal India is set to recommend the first interim dividend soon.

As per its regulatory filing, " the Company has fixed Tuesday, 21st Nov 2023 as the "Record Date" for the purpose of payment of 1st Interim Dividend on Equity Shares for Financial Year 2023-24, if declared by the Board."

Coal India topped the charts of the highest dividend yield PSU stocks in the last 12 months, as per Religare Broking data.

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.

Since February 2011, Coal India has declared up to 25 dividends for its shareholders which also includes the Government of India.

The first six months of FY24 have been fruitful for Coal India. The CPSE produced about 333 million tonnes (MTs) of coal ending the first half of the current financial year posting a strong 11.3% year-on-year growth. This was nearly 34 MTs higher compared to the same period FY 2023. All CIL's producing subsidiaries clocked growth.

Coal India's total supplies shot up to 360.7 MTs during H1 of FY 2024 ahead by 28.6 MTs with 8.6% growth compared to 332 MTs of year ago same period. Logging a double-digit growth of 12.6% in September 2023 coal supply at 55 MTs increased by 6.1 MTs compared to a year ago same month.

After meeting the requirement of the power sector, CIL's supplies to the non-power sector during the first six months of FY 2024 peaked at 65.7 MTs clocking 40% growth. The increase in absolute terms was nearly 19 MTs compared to 46.8 MTs during the first half of FY 2023.

Last week, on Friday, Coal India shares ended at Rs 311.95 apiece on NSE. The stock has gained by nearly 39% year-to-date.