This Maharatna PSU Stock Maintains A Healthy Dividend Payout With 8.55% Dividend Yield

Dividends play a crucial role when you decide to invest in the share market as you can expect to receive a reliable source of return. Dividend paying stocks give you benefits in two ways i.e. through the price appreciation of the share and through the distributions declared by the company. Coal India is one such company that consistently pays out dividend.

Coal India Ltd also known as CIL is the largest coal-producer in the world and Maharatna public sector undertaking. Let us take a look at its dividend offered to shareholders:

1. Dividend History

The company has a rich dividend history. It has declared 20 dividends since February 11, 2011. If we look at the graph of just the previous 12 months, Coal India has declared an equity dividend of Rs 17.50 per share When you view the current market price of Rs 198.75 apiece, it will result in a dividend yield of 8.55% which is quite attractive.

It also has a great dividend track report wherein it consistently declared dividend since last 5 years without fail. Coal India Ltd declared an equity dividend of 170% i.e. Rs 17 per share for year ending March 2022. Investors can profit if they invest in the company considering its reliable and consistent dividend policy.

2. Financials of Coal India Ltd

The company has emerged a profit-making unit with high ROCE (Return on Capital Employed) and low PE. The market capitalization as of writing this report is Rs 122,484 crore. It has P/E of 7.06 which is on the lower side compared to sector P/E of 7.39. The EPS is 28.17. The company has almost emerged as a debt-free entity which is a strong positive.

It is also expected to give a great quarter. It has an outstanding Return on Equity track record with the 3 years ROE recorded at 61.79%. It has declared an outstanding Q4 results with a jump of 45.9% in its consolidated net profit at Rs 6,693 crore in Q4 ending March 31, 2022.

3. Stock Outlook

The current market price of the stock is 198.75 on the NSE. The stock has touched its 52-week high of Rs 209 apiece and 52-week low of 132.75 apiece. In the last six months tenure, the stock has given a return of 31.36%, in last 1 year the return is 27% and in the last 5 years the return is in negative at 23.65%.

4. About Coal India Ltd

Also known as CIL, it is a state-owned coal mining corporate that came into existence in 1975. It has a modest production of 79 Million Tonnes (MTs) at the year of its inception. CIL today is the single largest coal producer in the world and one of the largest corporate employer with manpower of 272445 (as on 1st April, 2020), according to its official website.